Notice to Noteholders – Event of Default

Mosaic Brands Ltd Convertible Notes (ASX:MOZG)

Melbourne Securities Corporation Limited (ACN 160 326 545) (MSC Trustees) is appointed as trustee under the Convertible Note Trust Deed dated 28 September 2021 (Deed) for the Convertible Notes issued by Mosaic Brands Limited.

In accordance with clause 9.3(c) of the Deed, MSC Trustees notifies Noteholders of an Insolvency Event relating to Mosaic Brands Limited, which is an Event of Default under the Deed. MSC Trustees also received notice on 30 October 2024 of the occurrence of an Event of Default under the senior secured financing arrangements with HUK 137 Limited (Senior Lender) from the Senior Lender.

Details of Insolvency Event

On 28 October 2024 Kathryn Evans, Kathryn Warwick, David McGrath and Vaughan Strawbridge of FTI Consulting (Australia) Pty Ltd (Administrators) were appointed as voluntary administrators of Mosaic Brands Limited.

KPMG was appointed on 30 October 2024 by the Senior Lender, as Managers and Receivers acting in the interests of the Secured Lender (Receivers). The Receivers are now in control of the business operations and the whole of the assets of Mosaic Brands Limited.

Meeting of Creditors

A meeting of creditors will be held on Thursday, 7 November 2024. MSC Trustees intends to attend this meeting in its capacity as trustee to represent the interests of the holders of the Convertible Notes.

Pursuant to the intercreditor deed between, among others, Mosaic Brands Limited and the Senior Lender dated 15 March 2024, MSC Trustees is prevented from enforcing its security from Mosaic Brands Limited without the prior written consent of the Senior Lender.

Further Updates

We will provide further updates here as the matter progresses.

If you require any further information please contact us:

Phone: 1300 798 790 (Australia) +61 3 9050 2000 (International)
Email: trustee@msc.group

Download the Mosaic Brands Administrator Creditor Circular 29 Oct 24.pdf

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