MetLife Inc (MET) has asked some shareholders and bond investors to approve changes necessary for the insurance company to make interest payments as scheduled and to continue paying dividends to common shareholders, Reuters reported.
The call for change Thursday comes after MetLife completed the spinoff of Brighthouse Financial (BHF) on Monday. Analysts have expressed concern that the 20% drop in equity that came with the spinoff could keep MetLife from earning enough in the first three quarters of this year to offset the $2.1 billion net loss it reported in the last quarter of 2016.
MetLife asked holders of about $3.2 billion worth of debt to approve changes to "interest payment tests" in bond indentures. In a separate notice, MetLife called a special shareholder meeting to approve changes to "dividend payment tests."
Affected bondholders have until August 18 to consent to proposed changes. The shareholder meeting to vote on dividend changes is scheduled for October 19.
MetLife stock traded down 1.41% to $47.63 Thursday morning.
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