Written by: Basant El-Farmawy
Zorlu Enerji has begun efforts to gain bondholder approval to postpone an interest payment of $60.5 million, which is due under the company's $1.1 billion bond program maturing in 2030. Through this measure, the company aims to defer the payment date originally scheduled for October 23, 2026, to April 23, 2027, granting it a grace period of up to six months.
Investor Incentive Plan
As part of its efforts to secure bondholder support for this move, the company announced an incentive payment plan for investors who vote in favor of postponing the payment early. The plan includes granting investors $4 for every $1,000 of bond value, once specified conditions are met. The company is scheduled to hold a meeting with bondholders on November 23, 2026, to discuss the postponement request, which also includes imposing temporary additional restrictions on the terms and conditions of the current bonds.
Financial Challenges and Cash Flow Projections
This move comes amid financial pressures facing the company, as data from Fitch Ratings indicates that Zorlu Enerji has debt maturing worth $124.5 million over a 12-month period beginning last June. Financial reports also expect the company to record negative free cash flows during 2026 and 2027. The markets are awaiting the results of the November 23 meeting and the outcome of the bondholders' decision regarding the company's request to postpone financial obligations in light of the current financial landscape.
