REQUEST FOR APPROVAL OF A WRITTEN EXTRAORDINARY RESOLUTION – PARTIAL CONVERSION OF BONDS
According to Article 6 of the Terms and Conditions of the Bonds a partial conversion of the Bonds into Class A Shares may be effected by the Issuer, provided that the Board of Directors has determined, acting reasonably, that it is reasonably likely that the Issuer will be unable to redeem the Bonds in full on or before the Final Maturity Date.
The aggregated amount by which the Bonds may be redeemed shall not exceed the amount equal to the tax losses available to the Issuer in the financial year in which the Partial Issuer Conversion is proposed to be effected and which will cease to be available after the end of that financial year.
The Board of Directors believes that the conversion is in the best interests of both LBI and the Bondholders, as it is reasonably likely that LBI will be unable to redeem the Bonds in full on or before the Final Maturity Date and due to the fact that post income year 2021 the Issuer should not have sufficient tax losses available to cover later income that LBI will realize from later conversion or cancellation of debt. The Board of Directors therefore would like to propose a Partial Conversion at this point.
However, according to the Terms and Condition any Partial Issuer Conversion implemented prior to 31 December 2023, shall not result in the aggregate principle amount outstanding under the Bond, being less than the equivalent of EUR 1,667,984,758, unless otherwise approved by an Extraordinary Resolution of the Bondholders.
The aggregate principle amount outstanding under the Bond prior to the Proposed Partial Issuer Conversion is EUR 473,835,661.49 and would be reduced to EUR 415,525,303.49 after taking into account the effect of the Proposed Partial Issuer Conversion (EUR 58.310.358).
The Board of Directors of LBI believes that is in the best interests of both the Issuer and the Bondholder that the Extraordinary Resolution is passed to approve the Partial Issuer Conversion.
To approve the Extraordinary Resolution, the resolution in writing must be signed by or on behalf of holders of not less than (66 2/3) per cent. in principal amount of the Convertible Bond.