Counter

Friday, August 16, 2013

Magyar Telecom Bondholders to Vote on Restructuring Deal

Per www.globalinsolvency.com:


Fri., August 16, 2013
Magyar Telecom BV, the owner of Hungarian telecommunications company Invitel, asked its bondholders to vote on a debt-for-equity swap today as the company seeks to reduce borrowings and attract new investment, Bloomberg reported. Magyar Telecom, controlled by Mid Europa Partners LLP, set an Aug. 15 deadline for responses to its restructuring proposal and has support from holders of as much as 65 percent of its notes, it said in an Aug. 13 statement. It’s preparing a scheme of arrangement, a U.K. court process requiring a positive vote from holders of 75 percent of the notes, if it doesn’t get 90 percent approval for the deal. Mid Europa offered to invest 25 million euros ($33 million) as part of a restructuring deal for Magyar Telecom that would include bondholders swapping 174 million euros of notes for a 49 percent stake in the business, the company said on July 15. Magyar Telecom defaulted on its 9.5 percent notes due December 2016 in June and the notes are now trading at about 45 percent of face value, according to data compiled by Bloomberg.

No comments:

Post a Comment