Bond Corp. Stays Afloat Despite Missing Payment
Beleaguered Bond Corp. Holdings, once a corporate high-flyer with brewing, media and mining interests, remained in operation Friday despite its failure to come up with $340 million in payment to a company that had sought its liquidation.
Australian Consolidated Investments Ltd., formerly Bell Resources, decided not to close down Bond Corp. after Bond failed to make the payment Thursday.
ACIL said it would instead retain its security over $132 million in Bond assets and take part in a proposed debt-for-equity swap to keep the company afloat.
A creditor-supported restructuring of Bond was preferable to liquidation and other options, it said.
Bond Corp. is floundering in almost $3.1 billion of debt.
Founder Alan Bond, who became a national hero by winning the America’s Cup in 1983, left the company last year to appease its creditors.
Bond Corp. owns almost 75% of newspaper publisher Bell Group, which in turn owns 40%. Bond Corp. owns another 10% of ACIL directly.
Trading in shares of Bell Group, which has a negative worth of $353 million, was suspended Friday.