Ascendis Health, whose debt problems have contributed to a 90% fall in its share price over the past two years, said on Monday it has pushed back payment on its debt facilities until the end of 2021, from May this year.
The group has debt facilities of R5.1bn, which compares unfavourably with its R475m market capitalisation, and had previously agreed to halt to payments to its lenders.
This was first agreed on May 3 2019, which was restated in February 2020. The repayment of capital on the group’s senior debt facilities had again been postponed to May 15 2020.
Ascendis extends debt facilities until end of 2021
Ascendis Health, whose debt problems have contributed to a 90% fall in its share price over the past two years, said on Monday it has pushed back payment on its debt facilities until the end of 2021, from May this year.
The group has debt facilities of R5.1bn, which compares unfavourably with its R475m market capitalisation, and had previously agreed to halt to payments to its lenders.
This was first agreed on May 3 2019, which was restated in February 2020. The repayment of capital on the group’s senior debt facilities had again been postponed to May 15 2020.
Ascendis said on Monday under the new terms it has agreed to make a single lump sum payment in December 2021, while the agreement also includes milestones for asset disposals.
Ascendis Health shares are near an all-time low and has acknowledged it needs to sell its prized Cyprus-based Remedica business, though a recent proposed deal fell through, with the company saying it will not settle for less than it is worth.
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