Subex is applying to RBI for an extension of the maturity dates of it's FCCBs from 9th March'2012 to 9th July'2012, as it is talking with the bondholders to restructure the bonds.
Subex had raised $180Mn by issung FCCBs to acquire Syndesis Limited in 2007. It acquired Syndesis for $164Mn. But the acquisition turned sour in the financial crises, when Subex stock was beaten down to R18 from R803.
Subex has been exploring various fund raising routes including a private placement of shares to avoid a default. Avendus Capital is advising Subex on fund raising.
Subex on BSE
The FCCBs are in two tranches-FCCB-1 is $39Mn in face value and FCCB-2 has a face value of $55Mn - totaling $94Mn, or R460Cr, in principal alone. Subex reported a cash balance of a mere R6Cr for the quarter ended Sept'11.
Subex current share price of R31.80, with a market cap of R220Cr, is way below the FCCB conversion rates on maturity of R656 (first tranche) and R80 (second tranche) per share. The promoter holding in Subex is already low at just 11.6% making matters more complex. Besides, the company also has local debt of $25.5Mn on the books.
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