Subex holders vote to remove subsidiary pledge under 5.7% convertibles

By Susanna Moon

Chicago, Oct. 2 – Subex Ltd. holders voted to release the pledge of a company subsidiary under its $127,721,000 5.7% secured convertible bonds due 2017.

The meeting was held Oct. 2 in Singapore.

Holders approved the release and discharge of the pledge over the entire issued share capital of Subex (UK) Ltd., a wholly owned subsidiary of the issuer, which had been pledged as security toward repayment of bonds, according to two company notices.

The company said it sought to amend the notes because the State Bank of India agreed to extend Rs. 695 million of facilities for which the company would be required to pledge its entire shareholding in Subex UK.

Because the shares of Subex UK were pledged to the bonds as security, a release was needed in order to pledge tem to the bank, the company said.

The company also was authorized to enter into a deed of release and waived from breaches and events of default under the notes as a result of the release and discharge.

At least three-quarters of the bonds needed to be represented at the meeting in order to form a quorum, and at least a majority of the votes cast needed to be in favor of the waivers in order for them to pass.

Subex provides business support systems for communications service providers and is based in Bangalore, India.

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