Blue Star pauses payout

Blue Star Print Group is suspending cash interest payments on capital bonds until its parent is in compliance with the banking covenants.

Interest due to bond holders will compound, increasing payments to 13.1 per cent per annum from the current coupon of 9.1 per cent.

The company said its parent, Sirius NZ Holdco, had reached an agreement with its senior lenders to reset the company's banking covenants, amortisation and related pricing structure.

This agreement would enable Blue Star to continue a restructuring of its business.