Vestel seeks 45% haircut on $500 million bond; shares hit 2020 lows

Vestel has presented a restructuring proposal to holders of its $500 million eurobond maturing in 2029, offering them either a 45% haircut on their claims or the option to extend the maturity by six years. The company aims to complete the eurobond agreement before the coupon payment scheduled for November 15.

CEO Gökhan Sığın told Bloomberg News that the restructuring is intended to buy the company time during a period when it is contending with intense overseas competition and elevated costs in Turkey. "We are not assuming that the old conditions will return," Sığın said, noting that Asian competition will remain intense and that Turkey's cost structure has changed permanently.

The company, part of Zorlu Holding, reported ten consecutive quarters of losses from 2023 through the second quarter of 2026. The 2029-maturity bonds are trading at approximately 25 cents per dollar; shares have declined 45% this year, reaching their lowest level since 2020.

Vestel is also conducting separate negotiations with a consortium of Turkish banks regarding its domestic debt, seeking a two-year grace period on principal and interest payments and a final maturity date of 2041. Sığın said the talks are progressing constructively but declined to provide a timeline.

Under the new model, the company is increasing investment in home appliances while becoming selective in consumer electronics such as televisions, and it is targeting energy storage and megawatt-scale charging technology for heavy electric vehicles as growth areas.