Subex seeks approval to waive Jan. 6 interest on 5.7% convertibles

By Susanna Moon

Chicago, Dec. 11 - Subex Ltd. will hold a meeting for its outstanding $127,721,000 5.7% secured convertible bonds due 2017 on Jan. 3 in Singapore.

The company is seeking approval to waive the Jan. 6 interest, according to a company press release.

The issuer said it lacks the cash needed to make the scheduled initial interest payments on Jan. 6 and believes that waiving this payment is the only "viable option" to avoid default.

In exchange, the company is proposing to pay an amount equivalent to the value of the waived Jan. 6 interest, which will be $28.50 for each $1,000 in principal amount of bonds, along with the early redemption amount and/or the amount payable upon redemption of the bonds at maturity, the release noted.

At the meeting, the quorum needed to pass the measure will be two or more persons representing at least 75% of the bonds outstanding. If the meeting is adjourned, the quorum at the adjourned meeting will be two or more persons representing at least 25% of the bonds outstanding.

For the measure to pass, it requires a majority of at least three-quarters of the votes cast.

For more information contact Euroclear (custody operations department, +322 224 4245 or fax +322 224 1459) or Clearstream, Luxembourg (corporate action, +352 46 564 8065 or fax +352 46 564 8248).

The principal agent and paying agent is Bank of New York Mellon (attn.: trustee administration manager, fax +44 20 7964 4637).

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

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