Russel Metals noteholders approve amendment to 7.75% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 14 - Russel Metals Inc. said the holders of its 7.75% convertible subordinated debentures approved an amendment to the trust indenture removing the company's right to settle conversions prior to maturity in cash in lieu of common shares.

"In preparing to report our financial results under International Financial Reporting Standards it was determined that the company's ability to elect to settle debenture conversions in cash is considered to be a derivative under IFRS and could result in significant volatility in our earnings based on movement of the stock price. The amendment eliminates this volatility and will align our cash flow with our operating results," vice president and chief financial officer Marion E. Britton said in a company news release.

Russel Metals is a metals distribution company based in Toronto.

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