continued - The Lion Group

32. BONDS AND DEBTS (continued)
(A) LCB Bonds and LCB Debts
The Company had on 27 February 2009 implemented the LCB Scheme which is to address its debt
obligation to redeem/repay the LCB Bonds and LCB Debts issued by the Company pursuant to the Group
Wide Restructuring Scheme (“GWRS”) implemented in 2003.
On 27 February 2009, the Company had:
(i) fully redeemed its LCB Class A Bonds amounting to RM35.9 million;
(ii) converted RM900,000,000 nominal value of LCB Class B(b) Bonds with a present value of
RM804,460,000 into 804,460,000 new ordinary shares of RM1.00 each; and
(iii) converted a portion of its LCB Class B Bonds and LCB Debts into RCSLS (Note 31).
The principal terms and conditions of the LCB Bonds and LCB Debts are as follows:
(i) The tranches of LCB Bonds and LCB Debts are as follows:
Nominal Net Present Maturity Cash Yield-
Class Value Value Date to-Maturity
RM’000 RM’000 (per annum)
LCB Bonds B(a) 592,647 408,881 31.12.2019 5.00%
LCB Bonds B(b) 1,347,652 809,717 31.12.2020 7.00%
LCB Debts B 10,734 7,974 31.12.2019 4.25%
1,951,033 1,226,572
The LCB Bonds and LCB Debts are redeemable/repayable annually on 31 December of each calendar
year and are subject to late payment charges of 1% per annum above the cash yield-to-maturity.
(ii) The Security Trustee holds the following securities (“Securities”) for the benefit of the holders of the
LCB Bonds and LCB Debts:
(a) The assets included in the Proposed Divestment Programme (“PDP”) for the LCB Group. If
there is an existing security on any such assets, the Security Trustee will take a lower priority
security interest;
(b) The LDHB Inter-Co Repayment received by LCB;
(c) Entire/Partial investment in Lion Plate Mills Sdn Bhd, Bright Steel Sdn Bhd, Megasteel Sdn
Bhd, LCB Harta (L) Limited, Lion Industries Corporation Berhad and ACB;
(d) The Residual Assets, if any;
(e) Dividends upstreaming from Lion Plate Mills Sdn Bhd and Bright Steel Sdn Bhd;
(f) The excess, if any, of the ACB SPV Debts and proceeds of the Property Development Project
known as Mahkota Cheras Project after full repayment of the LCB SPV Debts;
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