Magyar Telecom restructuring takes effect; coupon payment deposited

By Caroline Salls

Pittsburgh, Dec. 13 - Magyar Telecom BV's restructuring effective date occurred on Dec. 12, according to a company news release.

The company said note creditors who submitted a valid account holder letter should have received their restructuring consideration entitlements and/or cash option entitlement on Thursday.

In addition, note creditors who signed or acceded to the restructuring agreement were scheduled to receive their consent fee on Dec. 13.

As previously reported, the restructuring consideration entitlements consist of notes issued by Magyar and shares issued by Matel Holdings Ltd., which owns 49% of the company.

The notes and the shares are stapled into units and will trade together as units for the period of two years, beginning on the effective date.

The company said the units were listed and admitted to trading on the Luxembourg Stock Exchange on Dec. 13.

Magyar said the first coupon payment on the notes is due on Dec. 16, and it deposited the coupon payment with the paying agent on Friday.

London-based Magyar provides telecommunications services through its Budaors, Hungary-based subsidiary, Invitel. The company filed Chapter 15 bankruptcy on Oct. 29 in the U.S. Bankruptcy Court for the Southern District of New York under case number 13-13508.

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