P-Com restructures convertibles

New York, Aug. 5 - P-Com, Inc. said it restructured its 7% convertible subordinated notes due 2007, converting them into preferred stock and.

The $21.138 million of principal and accrued interest owing on the convertibles has been exchanged for the same amount of preferred stock in the form of 1 million shares of series B convertible preferred stock with a state value of $21.138 per share.

P-Com said holders of the new preferreds have agreed to convert them into common stock once shareholders approve an increase in the authorized number of shares and completion of a qualified equity financing. The conversion price is 20 cents per share.

"This is a very positive step forward for P-Com that will allow us to significantly reduce our debt, including interest expense," said P-Com chairman George Roberts, in a news release. "This results in a significant improvement to our balance sheet and is an important step in the completion of our previously announced restructuring plan."

P-Com is a Campbell, Calif. manufacturer of wireless access systems.

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