Thailand’s Sabuy Technology Public Company Limited (SET: SABUY) is in danger of defaulting on a tranche of its outstanding debt, an event which could set off a ‘cross default’ scenario in respect to two other sets of debentures. Combined, these debts total out to a hefty figure of 3,795 million baht.
At a bondholder gathering held on November 20, 2024, stakeholders in the SABUY258A tranche, equivalent to 1,295.80 million baht, rejected a proposal from the firm that sought approval on two points. Permission for a waiver which would allow Sabuy to restructure its debt with lending institutions and a consent to lengthen the originally agreed upon maturity term by an additional three years.
Even though the company succeeded in convincing the investors of SABUY24DA (1,500 million baht) and SABUY254A (1,000 million baht) tranches to get on board with its proposed plan, the disapproval from the SABUY258A bondholder bloc effectively set off a cross default trigger across all these series.
The firm now has a five-day window till November 25, 2024, to meet its debt obligations.
