MTMY.L Share News (MTMY)

(Alliance News) - Matomy Media Group Ltd said Tuesday that 53% of bondholders voted against proposal which demands a USD4.5 million bond repayment within 45 days, if approved.

On Tuesday last week, the media company announced that the trustee of its series A bondholders had convened a meeting for the beginning of this week.

At the meeting, the bondholders were to vote on a resolution requiring a partial USD4.5 million early repayment. In the absence of payment, the bondholders would then demand "immediate and full" bond repayment. The resolution only needed majority approval to pass.

However, 52.8% of bondholders voted against the resolution with only 47.2% voting in favour. As a result, the proposed repayment demand resolution was rejected.

Shares in Matomy closed up 30% on Tuesday in London at 3.40 pence each.

Matomy has been working to sell its 90% holding in Team Internet AG to minority shareholder Rainmaker Investments GmbH for USD36 million cash in order to repay its bonds.

However, due diligence for the deal was extended twice - once to the end of July and then again for a further 45 days - due to "difficulties raised in the negotiations for the sale. This includes a claim that Matomy owes Rainmaker "an alleged debt", which Matomy disputes.

Matomy has sent a letter to the bondholder trustee, arguing against the USD4.5 million demand because it has been working on the Team Internet sale, cutting its general and administrative expenses, and collecting debt in order to "negotiate a restructuring plan between the company and its stakeholders".

In Matomy's view: "Demanding an immediate repayment would have implications not only on the negotiation for the sale of [Team Internet] shares and its terms, but also in terms of ceasing trading in the company's bonds."