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Blue Star Bondholders approve Amendment Offer

10 August 2011

Blue Star Bondholders approve Amendment Offer

The Board of Blue Star is pleased to announce that Bondholders have approved the revised Amendment Offer. At a meeting in Auckland today Bondholders voted 76.9% in favour of the refinancing proposal, surpassing the required 75% approval.

Bondholder approval of the Amendment Offer was the final requirement to give effect to the proposed refinancing package, which is essential to the group's future. The package includes the extension by senior lenders of existing funding lines, the provision of further liquidity and the easing of covenants, plus the provision of $15 million in new funding by the group's principal shareholder.

Blue Star managing director Chris Mitchell acknowledged that the decision had been difficult for Bondholders.

"The Board appreciates the decision of Bondholders to give this company time to demonstrate that it can deliver on the repositioning and restructuring that it is undertaking to drive higher levels of earnings. Improved performance is the key to Bondholders receiving some or all of their investment back."

"The Company remains confident in its plan."

Under the terms of the Amendment Offer Bondholders will receive their first interest payment in October 2013.

Mr Mitchell said "the approval of the refinancing package means that a cloud has been lifted from the company. We now have the financial confidence to be able to move forward and deliver on our strategies. Our staff, suppliers and customers have been hugely patient through these difficult times and I thank them for their support."


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