Brazil's Imcopa holders deliver consents needed to amend 10 3/8% notes

By Susanna Moon

Chicago, June 2 - Imcopa Importacao, Exportacao Industria e Oleos SA said it received the consents needed to amend Imcopa International Cayman Ltd.'s $100 million of 10 3/8% notes originally due in 2009.

The company solicited consents to skip the principal and interest payments that were due on May 10. The non-payment constituted an event of default under the note indenture.

The consent bid ended at 10 a.m. ET on May 27. It began on May 11.

At a meeting held June 1, noteholders representing 94.14% of the outstanding notes and 99.68% of the votes cast approved an extraordinary resolution to adopt the proposal, according to a press release.

The company needed consents from holders of at least 75% of the notes.

As a result, the issuer said it will pay a consent fee of $25.94 per $1,000 principal amount June 8 to holders who voted for the resolutions.

As previously noted, the consent fee is equal to half of the interest that would have been due for the period from Nov. 10 through May 10.

Six months ago, the company and its subsidiary Imcopa International ended a successful solicitation under which holders authorized the extension of the maturity date of the notes to May 10, 2010, the cancellation of the interest payment due on Nov. 27 and the waiver of compliance with various covenants governing the notes.

Imcopa said it has been making progress with its creditors on a restructuring plan and hopes to conclude the definitive agreement by June 30.

The consent solicitation is part of a broader restructuring plan to obtain sufficient resources needed to service all of the company's debt obligations and to facilitate the continued growth and development of its business.

The solicitation agent is HSBC Securities (USA) Inc. (888 HSBC 4LM, 212 525-5552, +44 20 7991 587 or liability.management@hsbcib.com), and the information and tabulation agent is Lucid Issuer Services Ltd. (+44 207 704 0880 or imcopa@lucid-is.com).

Imcopa makes soybean products and is based in Araucaria, Brazil.

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