Subex Ltd, a leading global provider of Business Support Systems (BSS) for Communications Service Providers (CSPs), announced recently that RBI has approved the extension of the maturity period of all the outstanding FCCBs to 9th July, 2012. This extension was sought by the company to have adequate time to complete the re-structuring activity that it is undertaking with the existing bondholders. Subex has convened a meeting of the bondholders on the 6th of March, during which meeting the bondholders are expected to approve this extension. With the approval, the extension process will be complete paving the way for the second stage.

“We are working on a complete re-structuring of the FCCBs with the existing bondholders and that has been contemplated as a two-step process. As we need 3 to 4 months to complete the plan, we decided to go for a two-step process. The first step is extension of the maturity period to give us adequate time to complete the second step. That first step is now moving towards a logical closure by the 6th of March”, said Mr. Subash Menon, Founder Chairman, Managing Director and CEO.

The second step is expected to result in some of the bonds getting converted to equity thereby reducing the overall debt and improving the debt-equity ratio. Once completed, this step will strengthen the balance sheet adequately. “I am glad to state that we are progressing well towards a full and final solution for the FCCB issue. We are hopeful of receiving the regulatory approvals required to complete the process in a timely manner”, he further added.