Kepco completes first step of Asia's largest liability management exercise

The Korean electricity utility receives court approval for its consent solicitation covering $2.95 billion of its dollar debt.

The first stage of a comprehensive liability management exercise covering all of Kepco's domestic and international debt was completed this week, when the Korean courts approved a consent solicitation for eight Yankee bonds. This means Kepco can now introduce a streamlined covenants package across its outstanding Yankee bonds and remove clauses covering joint and several liabilities.

For lead managers Credit Suisse First Boston and Lehman Brothers, completion also rank as a minor coup since the two were able to obtain investors consent without Kepco needing to pay a consent fee.

Launched in mid-November, the consent solicitation was prompted by the restructuring of the Korean electricity industry, which has seen six gencos...

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