Harakosan noteholders adopt redemption price reduction

By Caroline Salls

Pittsburgh, March 16 - The holders of Harakosan Co., Ltd.'s convertible notes due 2012 have adopted the company's proposed notes amendments, according to a company news release.

Specifically, the notes will be redeemed at a redemption price of 15% of the principal amount, with 7.5% to be paid on March 31 and 7.5% on Sept. 30, 2009.

Since it was released from the obligation to prematurely redeem the ¥6 billion principal amount of the notes at par, Harakosan said its outflow amounts will be significantly reduced, which could help the company return to financial health.

The noteholders have also agreed to waive any default stemming from non-payment of the principal due on Feb. 20.

In addition, the company has agreed to extend the deadline for entering into the optional securities purchase agreements to March 20.

Harakosan is a Shimonoseki-shi, Japan-based real estate company.

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