The share price of JKN Global Group Public Company Limited (SET: JKN) fell 30% to daily limit on Thursday after the company announced earlier today that it is expecting a partial default on its JKN239A Debenture with a maturity date on September 1, 2023.
The share price opened at THB 1.69 per share, plunging sharply by 29% from THB 2.38 in response to the report of a partial default. The share price dropped as much as 30% not long after the opening bell.
The company noted that JKN239A Debenture has a total amount of principal and interest of THB 609,981,369.86. However, the company has encountered challenges in effecting the full repayment of the principal and interest to the debenture holders on the prescribed maturity date. As a result, the company is prepared to effect a partial repayment consisting of THB 146,618,630.14 in principal and THB 9,981,369.86 in interest, totaling THB 156,600,000 on the maturity date (September 1, 2023), leaving an outstanding balance of THB 443,400,000.
JKN stated that it is compelled to execute procedures in accordance with the Terms of Rights. The established procedures include: (1) the receipt of written petition from one or multiple debenture holder(s) holding debenture or collectively hold debentures of not less than 50 percent of the total unredeemed debentures; or (2) the resolution of the meeting of debenture holders, formally declaring the company in default and requiring the immediate maturity of the debentures.
To redress this situation, JKN stated that it has prepared a debt repayment plan for JKN239A Debentures which shall be presented to the meeting of debenture holders, tentatively scheduled for September 29, 2023, for approval to: (1) the debenture principal and interest repayment plan, the amendment to the Terms of Rights, including the amendment of any other relevant documents; and (2) a formal request for a waiver regarding the prevailing default in principal and interest repayment as an exception to the event of default under the purview of the Terms of Rights, and a proposal of conditions requisite to forestall the immediate debenture repayment (Call Default).
In the event of approval by the meeting of debenture holders, JKN stated that it is within firm belief in its capacity to uphold the repayment plan pertaining to principal and interest obligations according to the prospective plan.
JKN noted that it does not adopt a lax stance in relation to the default pertaining to the partial repayment of principal. Over the preceding period, the Company has considered various sources of funding. However, the negotiations with relevant partners have failed to reach outcomes in line with Company’s expectations.
However, the negotiations with relevant partners have failed to reach outcomes in line with company’s expectations. In this regard, the company confirms and reiterates its commitment, underpinned by unwavering trust, to the intention of effecting the complete repayment of both principal and interest attached to the JKN239A Debenture, alongside any other debentures issued by the company.