Matomy Media Says Bondholders Not Entitled To Default Payment

LONDON (Alliance News) - Matomy Media Group Ltd clarified Thursday the alleged claims made ...

Alliance News 6 December, 2018 | 3:15PM
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LONDON (Alliance News) - Matomy Media Group Ltd clarified Thursday the alleged claims made against it in a letter from bondholders are in regard to its "conduct, provision of information and past disclosures".

The Israeli internet advertising company also said the letter stated the bondholders are entitled to an immediate repayment of all amounts under the bonds, on account of the misconduct.

Matomy rejects these claims. It said "no event has occurred" that constitutes an event of default under the company's bonds and has clarified its compliance with disclosure obligations.

Shares in Matomy Media were up 10% Thursday at 10.40 pence each.

Matomy raised USD30.0 million in February through the issue of 101,000 units of convertible bonds, with a coupon of 5.5% a year. Proceeds were intended to be used to acquire an additional 10% in Team Internet AG, taking its holding to 90%, with the final 10% expected to be bought in November.

In November, Matomy said it was in talks to alter the terms by which it will purchase the final 10% Team Internet stake from Rainmaker Investments GmbH. Matomy was also seeking to defer the payment for the stake acquisition.

Moreover, it was also seeking to revise the terms of its outstanding bonds.

On Monday, Matomy outlined a proposed plan for an agreement with both its bondholders and with Rainmaker, the minority shareholder in the Team Internet media company.

Matomy planned to enter into a discussions for a comprehensive agreement with both its bondholders and with Rainmaker.

Matomy proposed up to USD10 million in fund raising - with participation commitment from key shareholders representing approximately 55% of its share capital.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Matomy Media Group Ltd 5.70 GBX 35.71 -
Matomy Media Group Ltd 0.22 -
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