(Alliance News) - Matomy Media Group Ltd on Tuesday said a bondholder trustee is convening yet another meeting to vote on immediate bond repayment.
Shares in Matomy were down 17% at 2.30 pence in London in afternoon trading.
The trustee is to demand immediate and full bond repayment unless a binding share purchase agreement to sell Matomy's Team Internet AG shares is signed by November 6 for an amount sufficient to repay the bonds with interest.
This follows a similar rejected resolution in July, which also demanded repayment.
Matomy said it has been working to sell its Team Internet stake and repay its bondholder debt and "a unilateral decision to demand an immediate repayment of the bonds may materially prejudice the chances to complete such sale."
Moreover, Matomy said the immediate repayment demand might also hurt its chances of getting a sufficient consideration from the sale of its 90% Team Internet stake so as to fully repay the bonds.
"The bondholders should take into consideration the difficulties that such proposed resolution may entail, and enable the company the necessary time to complete such sale," said Matomy.
On Friday last week, Matomy announced it was discussing terms with a company interested in acquiring its Team Internet stake and had signed a "non-binding letter of intent" with an unnamed interested party. This follows 10% Team Internet owner Rainmaker Investments GmbH's decision to drop out of talks to take sole ownership of Team Internet.
By Anna Farley; annafarley@alliancenews.com
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