Bond issuer NIS Group fails to pay loans
This resulted to an Event of Default for the bonds currently listed on SGX.
The Japanese finance company said they failed to make payment on certain loans due 30 September 2011. A statement by NIS Group said, “Pursuant to Article 7.3(ii) of the Terms and Conditions in the offering circular of the Bonds, an Event of Default has occurred if any indebtedness of any of the Issuer is not paid when due or within any applicable grace period.”
The Event of Default occurred between NIS Group and The Bank of New York Mellon, which is the Trustee.
NIS Group said they are currently formulating an appropriate response to the issue.