Australian-listed Silver Heritage Group has renegotiated terms with its corporate bondholder OCP Asia in a deal that will see it pay back around US$6 million of its outstanding bonds in order to focus on the ongoing ramp of its Nepal IR, Tiger Palace Resort Bhairahawa.
The news follows an announcement by Silver Heritage earlier this week that it was in the process of raising capital in order to avoid any risk of default.
The company announced early Thursday that it has now completed the renegotiation of terms with OCP, “including paying back at least US$6m of its US$18m outstanding bonds, deleveraging the business and giving significant headroom with regard to bond repayments and amortisation as the business continues its growth trajectory.”
The new terms effectively reduce Silver Heritage’s debt to US$11.7 million as well as providing a grace period of around 15 months until the end of 2019 before any further repayments are required. The company plans to use that time in order to focus on ramping Tiger Palace, which launched hotel operations last September and its casino in late December.