Moser Baer holds off meeting for 0% convertibles; more time needed

By Susanna Moon

Chicago, April 8 - Moser Baer India Ltd. will reschedule the meeting for holders of its zero-coupon tranche A convertible bonds and zero-coupon tranche B convertible bonds, according to a letter sent to the National Stock Exchange of India.

Moser Baer had planned to notify bondholders of a consent solicitation setting out the commercial terms of its restructuring proposal by March 22, the letter noted.

The company said it needs more time to complete the legal documentation and obtain regulatory approval for the restructuring.

The bondholders' meetings were originally set for April 16.

As noted before, the company is looking to restructure the commercial terms of the convertibles, which were scheduled to mature on June 21, 2012.

Moser Baer said on Feb. 28 that it also sought consents to extend the maturity to a date on or before April 30. The company also sought a waiver of all existing events of default and potential events of default.

The company's restructuring proposal also would have provided bondholders an option to exchange their securities for a new foreign-currency convertible bond or a new foreign-currency loan.

Background

The company previously had a meeting scheduled for Jan. 21.

On June 29, 2012, Moser Baer announced plans to hold a bondholder meeting on Aug. 31, 2012. It later canceled the meeting and said it would issue a new meeting notice to bondholders on Sept. 7, 2012.

On Sept. 17, 2012 the company said it was still working out the details of a consent solicitation for the convertible bonds and expected to issue a meeting notice no later than Oct. 5.

At the Aug. 31, 2012 meeting, Moser Baer was going to seek approval to redeem a portion of each bond at a cash amount of $50 per $1,000 face value, thus reducing the outstanding amount of each bond to $950. The company would then substitute each outstanding bond with a new bond with a face value of $1,000 and an outstanding principal amount of $950 per bond.

Holders were also going to be asked to waive, effective June 20, 2012, the redemption premium that was payable on the bonds and to waive any defaults arising under the terms of the securities.

The company originally issued $75 million of each series of convertibles. A combined $88.5 million of convertibles remain outstanding.

Moser Baer is a New Delhi-based optical media manufacturer.

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