Gulf Navigation Holding has announced in a disclosure with the Dubai Financial Market that it was calling a General Assembly Meeting of all stakeholders on January 31 to decide on issuing bonds worth AED150 million ($40.84 million).
The Dubai-headquartered shipping company said in its disclosure that the meeting was being organized “to consider the issuance of Mandatory Convertible Bonds” for a value of up to AED150 million “by way of a private placement to those existing sukukholders and other creditors” who wished to swap their existing sukuk certificates or debts and subscribe to the new bonds.
There could be up to 150 million bonds, said the company, adding that it was mandatory for them to be converted into its shares in accordance with the terms and conditions of the new bonds and without the need for any future approvals to the conversion process from the general assembly.
The company said the date of issuance of the bonds is March 9.
The conversion period of the bonds would be three months from the issuance date.
It added that no guarantees, mortgages, or pledges would be given in return of issuing the bond.
The purpose of issuing the bonds was to restructure the existing sukuks and other debts of GNH by virtue of which those creditors wishing to voluntarily swap their existing sukuk certificates or debts subscribe to the new bonds.