Alpargatas restructuring plan approved

By Caroline Salls

Pittsburgh, July 10 - Alpargatas SAIC's restructuring plan was approved by the court Friday following acceptance by the company's creditors, according to a news release.

Debt covered by the vote is Alpargatas' series B bonds due March 15, 2010, series A bonds due March 15, 2015, 9% convertible bonds due March 15, 1998, 11¾% series 10 bonds due Aug. 18, 1998, 12¾% bonds due July 30, 2003, promissory notes due April 21, 1998, promissory notes due June 8, 1998 and promissory notes due Aug. 13, 1998.

As previously reported, noteholders had four options under the plan:

• Option A offers new notes with no haircut. The notes will have a 25-year maturity and a 10-year grace period. Interest will step up from 1% to 3% with a two-year grace period;

• Option B offers new notes with a 50% haircut. The notes will have a 15-year maturity and a five-year grace period. Interest will step up from 1% to 3%;

• Option C offers new notes with a 75% haircut. The notes will have a 15-year maturity and an 11-year grace period. They will not pay interest. Holders will also receive 7 cents in cash. The option is capped at AR$50 million;

• Option D offers capitalization of the debt into stock at the rate of AR$12 per share. There will be a 20% haircut.

Alpargatas is a footwear and textiles manufacturer and retailer based in Buenos Aires, Argentina.

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