PCBL Chemical Limited has informed the Exchange about Intimation regarding outcome of the meeting of the debenture holders of PCBL Chemical Limited pursuant to Regulation 51(2) of the SEBI LODR 2015, as amended w.r.t approval to the amendment to the debenture trust deed dated January 20, 2024 for deferring the testing of a financial covenant.
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PCBL Chemical Limited has received approval from all debenture holders to amend the Debenture Trust Deed dated January 20, 2024, for its NCDs (ISIN: INE602A07020). The amendment defers the testing of the financial covenant on 'Consolidated Gross Debt / EBITDA' for financial year 2025-2026. Catalyst Trusteeship Limited, acting as the debenture trustee, confirmed unanimous approval from holders. The original covenant testing requirement was scheduled under clause 2.13(a) of Schedule V of the trust deed. This means the company will not be tested against this leverage ratio for FY26, giving it more breathing room on its debt obligations.
Deferring a leverage covenant test often signals that a company anticipated potential difficulty meeting its debt-to-EBITDA ratio, which is worth monitoring for retail investors. However, the unanimous approval from debenture holders shows lender support and avoids any immediate default or acceleration event, so the stock impact may be limited.