EROS MEDIA WORLD
PLC
(incorporated as a limited company and registered in the Isle
of Man under the Companies Act 2006 (Isle of Man) with company
number 007466V)
£50,000,000 9.00 per cent. Secured Bonds due 2026
(ISIN:
XS1112834608) (the "Bonds")
BONDHOLDER UPDATE
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE
REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED (THE
"UK MARKET ABUSE REGULATION").
NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN ANY
JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE
THIS ANNOUNCEMENT.
01
May 2024
Eros Media World PLC (the
"Company") hereby gives
notice that it has not yet made the interest payment on the Bonds
which was due on 15 April 2024, and payable by 29 April 2024. This
follows the non-payment of the interest payment falling due in
October 2023, as announced on 31 October 2023.
As announced by the Company in March
2023, the sale of STX Entertainment in 2022 left a legacy of
complex financial reporting and other transition issues for the
Company, while the COVID-19 pandemic also caused significant
disruptions to the Company's global operations. The Company has
been working ever since on a business transformation plan which is
ongoing, but which has proven to be significantly more challenging
than was originally contemplated. In the meantime, the Company has
suffered significant losses, including a net loss of US$741.9
million in the 2021 financial year and a net loss of US$60.9
million in the 2022 financial year (all as disclosed in the
Company's audited financial statements for the year ended 31 March
2022). This combination of factors has left the Company with a
significant liquidity shortfall, causing it to miss the scheduled
interest payments on the Bonds in October 2023 and April
2024.
Based on the high level of
acceptance by Bondholders of the Company's invitation to repurchase
the Bonds in March 2023, the Company believes there is likely to be
significant support from Bondholders for a proposal to allow
Bondholders to exit their investment in the Bonds. Due to its
current financial position, the Company has not been able to
repurchase any Bonds pursuant to the invitation that was launched
in March 2023. However, the Company is working with its advisers to
devise an alternative invitation which is designed to give
Bondholders an opportunity to realise more value than the current
trading price of the Bonds would indicate. There is currently no
certainty around the timing or other details of this potential
invitation (including in particular the financial terms of any such
invitation), and no assurance of when (or if) such an invitation
will follow. The Company will make further announcements as
appropriate and in accordance with regulatory
requirements.
For further information, please
contact:
Investor Relations Team
Email: Investors@ErosIntl.com
Important Information
This announcement is released by
Eros Media World PLC and contains information that qualified or may
have qualified as inside information for the purposes of the UK
Market Abuse Regulation, encompassing information relating to the
Bonds mentioned above. For the purposes of the UK Market Abuse
Regulation, this announcement is made by the Investor Relations
Team at Eros Media World PLC.
The distribution of this
announcement in certain jurisdictions may be restricted by law.
Persons into whose possession this announcement comes must inform
themselves about and observe any such restrictions. Any failure to
comply with these restrictions may constitute a violation of the
securities laws of any jurisdiction.
This announcement does not
constitute or form part of any offer or invitation to sell, or any
solicitation of any offer to purchase any securities.