[ET Net News Agency, 25 June 2015] Moody's Investors Service said that the third
extension of Winsway Enterprises Holdings Limited's (01733) negotiations with bondholders
and investors on fund-raising and debt restructuring is credit negative for the company,
but such issues have been factored into its Caa3 corporate family rating and Ca senior
unsecured rating.
The ratings outlook is negative.
On 22 June 2015, Winsway announced a third extension of its Standstill Agreement with
bondholders to 20 July 2015, after previous extensions on 31 May 2015 and 15 June 2015.
The Standstill Agreement originally came into place on 8 May 2015, when Winsway
defaulted on an interest payment of $13.15 million on its 2016 senior notes after a 30-day
grace period.
In the same announcement, Winsway disclosed that negotiations with potential investors
and bondholders are ongoing, but those with some investors had ceased.
"This prolonged uncertainty over Winsway's debt restructuring plans is credit negative
as it will delay the execution of changes to its business model", said Dylan Yeo, a
Moody's Analyst. (KL)