IMAX retires $22 million of 7 7/8% '05 notes

New York, June 19, - IMAX Corp. (Caa2) said that it retired $22 million in face value of its $200 million of 7 7/8% senior notes due December 2005 in exchange for 2.9 million newly issued common shares of the company.

IMAX, a Toronto-based movie technology company, said that following these transactions, approximately $178 million of the notes remain outstanding. IMAX said retiring approximately 10% of its outstanding debt "facilitates our ability to refinance the remainder of the debt before December 2005 on favorable terms."

When combined with prior debt retirements in 2001 and 2002, IMAX has reduced its total debt by more than 40% in less than two years.

Vantico extends exchange offer for 12% '10 notes

New York, June 19 - Vantico Group SA (Ca) said that its previously announced offer to exchange cash or common equity interests for its approximately $250 million of outstanding 12% senior notes due 2010, as part of the company's broader financial restructuring, has been extended from the original expiration deadline at 5 p.m. London time on June 16 until 5 p.m. London time on June 23, subject to possible further extension.

The purpose of the extension is to allow the closing of the exchange offer to coincide with all other aspects of the restructuring. Apart from the extension, the terms of the exchange offer remain unchanged in all other material respects.

Vantico said that it has been advised by Volcano Holdco 2 LLC - an entity that was formed for the purpose of implementing the restructuring of Vantico - that as of 12 noon London time on June 16, holders of €62.222 million principal amount of the notes, representing approximately 25% of the notes outstanding, had validly tendered their notes and had not withdrawn them. In addition, since Volcano Holdco already holds approximately 73% of the notes, holders of a total of approximately 98% of the notes have therefore indicated their support for the exchange offer - just short of the previously announced 99% holder participation threshold.

As previously announced, Vantico, a Luxembourg-based and manufactures polymer and adhesives, said on May 29 that it had begun the exchange offer for the 12% notes on May 16, and had also obtained an extension on waivers from its bank lenders enabling it to complete its restructuring.

The company said the initial deadline was 5 p.m. London Time on June 16 (this was subsequently extended).

It said that note holders could elect to receive €300 in cash or 5.1 common equity interests in the company per €1,000 in principal amount of notes tendered. The noteholders who choose the equity exchange offer can subscribe for additional equity in the company.

The exchange is conditioned upon the successful completion of a refinancing of the existing senior bank debt and the achievement of a 99% threshold of acceptance by noteholders, with the company already holding 73% of the notes, having received them from MatlinPatterson Global Opportunities Partners, LP and SISU Capital Ltd., members of the ad hoc committee of holders.

The ad hoc committee provided a bridge facility of up to €50 million to Vantico as part of the restructuring, and borrowings will be repaid to the extent possible with available liquidity when the restructuring closes. The remainder of the bridge equity will be terminated, on the basis that each €1 million of outstanding principal and accrued interest under the facility will be converted into 0.4% of the units to be outstanding after completion of the exchange offer, equity private placement and the bridge equity.

At completion of the restructuring, MatlinPatterson will hold 60% of the equity. It is expected to transfer that stake to HMP Equity Holdings Corp., which is jointly owned by MatlinPatterson and the Huntsman family.

The exchange is being carried out as a private offering only to noteholders who are not U.S. citizens, or who are U.S. citizens that are accredited investors as defined by the Securities Act of 1933, as amended.

Ahold to buy back Disco 9 7/8% 08 bonds

New York, June 19 - Dutch supermarket giant Royal Ahold NV said it would buy back the $250 million of outstanding 9 7/8% notes due 2008 issued by its troubled Argentine-based supermarket operation Disco SA (Ca). Ahold currently holds between 75% and 80% of Disco's bonds.

Ahold announced in April that it was selling Disco as part of an effort to divest non-strategic assets outside of Europe and the U.S. and cut its debt load of approximately $14 billion. The bond buyback is seen as an effort by Ahold to clean up the company's balance sheet and make it more attractive to potential purchasers.

The bond buyback is expected to be completed on July 22, after which Disco will only have bank debt outstanding.

The redemption will be at 104.9375% of par plus accrued interest up to but excluding the redemption date. The bonds have recently traded in the 75 bid, 80 offered area.

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