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

By Marisa Wong

Madison, Wis., Jan. 3 - Subex Ltd. said that bondholders waived the Jan. 6 interest payment on its outstanding $127,721,000 of 5.7% secured convertible bonds due 2017.

Subex received approval of the waiver at the bondholders' meeting held on Friday in Singapore.

The issuer said before that it lacked the cash needed to make the Jan. 6 interest payment and believed that waiving the payment was the only "viable option" to avoid default.

In exchange, the company will pay at maturity an amount equivalent to the value of the waived Jan. 6 interest, which is $28.50 for each $1,000 in principal amount of bonds, and $57.00, an amount agreed upon with the bond trustee on Jan. 4, 2013, according to a news release.

The meeting required a quorum of two or more persons representing at least 75% of the bonds outstanding. If the meeting had been adjourned, the quorum at the adjourned meeting would be two or more persons representing at least 25% of the bonds outstanding.

The measure required a majority of at least three-quarters of the votes cast to pass.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.