Chaarat Gold Bondholders Group Responds to Redemption Proposal Amid Concerns
In a significant development concerning the financial maneuvering of Chaarat Gold Holdings Limited, on February 3, 2026, a collective group of bondholders publicly addressed their responses to Chaarat Gold's intentions regarding the redemption of its Senior Secured Convertible Loan Notes maturing in 2028.
Chaarat Gold notified the bondholders of its objective to redeem these notes in full on February 13, 2026. The funding for this redemption is planned to come from the proceeds of the sale of its stake in Zaav Holdings Ltd to SilverCorp Metals, Inc. This sale represents a pivotal shift in Chaarat Gold's strategic financial operations, but it has unearthed concerns amongst the bondholders.
The bondholders, collectively referred to as the “Group,” have expressed their preliminary support for any legitimate transaction that promises timely payment of the bonds. They acknowledge the importance of securing value for the shareholders of Chaarat Gold post-repayment. However, to adequately assess the redemption proposal, the Group insists on receiving fundamental information about the bonds in question.
A representative from the Group has reached out to Chaarat Gold, emphasizing the necessity for transparency. They have raised various inquiries pertaining to the utilization of funds from the sale and have requested to know the full extent of transaction fees associated with this significant sale. Unfortunately, as of now, Chaarat Gold has refrained from disclosing any details unless a Non-Disclosure Agreement (NDA) is signed by the bondholders. This NDA would impose confidentiality obligations for up to five years, which the Group finds unreasonable given that the bond redemption is less than two weeks away.
In light of these developments, the Group is advocating for Chaarat Gold to promptly disclose crucial information to all bondholders without the need for an NDA. Specifically, they are seeking:
Furthermore, the Group is suggesting a pro forma NDA that any bondholder can sign for accessing additional details as needed. This approach intends to ensure that all bondholders are bound to the same terms of confidentiality, should they require further information.
The Group, seeking guidance through their legal representation from the renowned law firm Cleary Gottlieb Steen & Hamilton LLP, aims to ensure that their rights as bondholders are respected and any transaction surrounding their investments is handled with utmost clarity and integrity.
As the scheduled redemption date approaches, the Group emphasizes the critical nature of the requested information. They hope that Chaarat Gold will act with transparency and consider the best interests of all stakeholders involved. Bondholders who wish to engage further with the Group are encouraged to contact Cleary Gottlieb Steen & Hamilton LLP to voice their inquiries or concerns, ensuring a unified front as these financial plans unfold.
Background of the Proposal
Chaarat Gold notified the bondholders of its objective to redeem these notes in full on February 13, 2026. The funding for this redemption is planned to come from the proceeds of the sale of its stake in Zaav Holdings Ltd to SilverCorp Metals, Inc. This sale represents a pivotal shift in Chaarat Gold's strategic financial operations, but it has unearthed concerns amongst the bondholders.
Support for Redemption but Need for Information
The bondholders, collectively referred to as the “Group,” have expressed their preliminary support for any legitimate transaction that promises timely payment of the bonds. They acknowledge the importance of securing value for the shareholders of Chaarat Gold post-repayment. However, to adequately assess the redemption proposal, the Group insists on receiving fundamental information about the bonds in question.
A representative from the Group has reached out to Chaarat Gold, emphasizing the necessity for transparency. They have raised various inquiries pertaining to the utilization of funds from the sale and have requested to know the full extent of transaction fees associated with this significant sale. Unfortunately, as of now, Chaarat Gold has refrained from disclosing any details unless a Non-Disclosure Agreement (NDA) is signed by the bondholders. This NDA would impose confidentiality obligations for up to five years, which the Group finds unreasonable given that the bond redemption is less than two weeks away.
Call for Urgent Disclosure
In light of these developments, the Group is advocating for Chaarat Gold to promptly disclose crucial information to all bondholders without the need for an NDA. Specifically, they are seeking:
- - A copy of the current bond instrument,
- - A calculation reflecting the accrued interest on the bonds as of the proposed redemption date.
Furthermore, the Group is suggesting a pro forma NDA that any bondholder can sign for accessing additional details as needed. This approach intends to ensure that all bondholders are bound to the same terms of confidentiality, should they require further information.
The Group, seeking guidance through their legal representation from the renowned law firm Cleary Gottlieb Steen & Hamilton LLP, aims to ensure that their rights as bondholders are respected and any transaction surrounding their investments is handled with utmost clarity and integrity.
Conclusion
As the scheduled redemption date approaches, the Group emphasizes the critical nature of the requested information. They hope that Chaarat Gold will act with transparency and consider the best interests of all stakeholders involved. Bondholders who wish to engage further with the Group are encouraged to contact Cleary Gottlieb Steen & Hamilton LLP to voice their inquiries or concerns, ensuring a unified front as these financial plans unfold.
Topics Financial Services & Investing）
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