BreadTalk waits on notice to repay notes in financial covenant breach

The covenant involves $100m 4% fixed rate notes.

BreadTalk Group said that it has not received a notice to repay notes in relation to the company’s technical breach of financial covenants, it said in response to SGX queries.

BreadTalk has earlier declared in its financial statement for FY2019 that it has committed a technical breach of financial covenants due to the decrease in the company’s accumulated profits. The financial covenants involve $100m 4% fixed rate notes that are due by 2023.

SGX called on the company to clarify if the breach is capable of remedy, and whether the noteholders or the trustee have called on an event for default.

BreadTalk further said in its response that the breaches of the financial covenants are not capable of remedy as they are a result of the financial performance of the company for FY2019.