DDi reaches agreement on restructuring credit facility, notes, to miss note coupon

New York, May 13 - DDi Corp. said it reached an agreement in principal with the steering committee of its senior lenders on restructuring its credit facility and with an ad hoc committee of holders of its convertibles on restructuring the notes.

The restructured credit facility will have a maturity date of 2008.

DDi said it believes that the restructured facility will allow it to implement its business plan.

The agreement is subject to various terms and conditions including approval by other senior lenders - the steering committee holds less than a majority of the outstanding bank debt - and reaching arrangements to restructure its convertible subordinated notes and subsidiary DDi Capital's 12½% senior discount notes.

The Anaheim, Calif. provider of interconnect services for the electronics industry said an ad hoc committee of some holders of its 5¼% and 6¼% convertible notes also participated in the discussion and the company reached an agreement with this committee on restructuring the convertibles.

The ad hoc committee holds less than a majority of the convertibles.

DDi is in default on both its bank debt and convertibles.

The company said it expects that DDi Capital's senior discount notes will also be restructured and said it does not anticipate paying the interest due on May 15 on these securities. There is a 30-day grace period before a default occurs.

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