LONDON (Alliance News) - Matomy Media Group Ltd on Monday said a majority of bondholders had rejected its plan and instead voted for the plan set forth by representatives of the bondholders themselves.
Shares in Matomy were down 13% at 5.84 pence on Monday.
Matomy said the bondholder proposal was bought without consent from Matomy or its shareholders and only indicated a non-binding approval.
Matomy further noted that no resolution for immediate repayment due to a default has been adopted by the bondholders. However, a contingent voting proxy for immediate repayment has been published by the bondholders' trustee.
The trustee document states that if the conditions set out by the bondholders are not adopted by Thursday, the bondholders "may resolve to declare immediate repayment".
On January 9, Matomy announced the key features of its updated plan. The plan included Matomy undertaking USD13 million of fund raising on the London Stock Exchange.
Matomy's plan also included its intent to try to reach an agreement with Rainmaker Investments GmbH, a minority shareholder in Matomy's Team Internet AG domain business.
Matomy failed to pay the amount due to Rainmaker on November 30 for 10% of Team Internet, triggering Rainmaker's right to repurchase some or all of the Matomy's shares in Team Internet at 60% of their original price.
Matomy was also considering the sale of its Team Internet interest.
The bondholder plan differs from this in that an additional USD3.5 million would be injected into Matomy, which could be accomplished through the issue of series A debenture to key shareholders.
Bondholders also proposed that this injection could be achieved through a reduction in the cash due to Rainmaker to USD10 million from USD13.5 million via the issue of USD3.5 million worth of series A bonds to Rainmaker.
The cash difference would be used to advance partial repayment to Matomy's bondholders.
"Matomy's management continues to believe that its proposed plan is in the best interest of all stakeholders, in particular the bondholders and includes a substantial cash infusion by key shareholders. The company is continuing its negotiations in order to present a comprehensive agreement for the benefit of all stakeholders," Matomy said.