Praktiker may try again for coupon cut
The executive board of Praktiker, the struggling German DIY retailer, is debating whether to change its restructuring plans after investors rejected its request to cut the coupon on its high yield bond to 1%. The other course of action it might take is to ask investors to vote again on the coupon cut – which would only need a 25% approval rate.
In March Praktiker asked holders of its 250m 5.875% 2016 notes to accept the interest rate cut. Only 19.12% of the bondholders agreed during the March 22-25 consent period. Praktiker needed an acceptance level of 50%.
Since then, Praktiker has been discussing whether to make changes to its proposals
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