Concordia Bus Nordic receives financing proposal, again extends consent solicitation

New York, May 16 - Concordia Bus Nordic AB said it has received a financing proposal from some members of the ad hoc committee of holders of the 11% senior subordinated notes due 2010 issued by Nordic's ultimate parent, Concordia Bus AB.

Under the proposal, the holders would lend €40 million to Concordia Bus AB, which would then use the funds to make an equity contribution to Concordia Bus Nordic to meet the costs of the restructuring.

Concordia said a meeting has been scheduled for next week between the companies, the ad hoc committee, some holders of the company's 9 1/8% senior secured notes due 2009 and advisers.

Concordia Bus Nordic also said it has extended its consent solicitation to 12 p.m. ET on May 20 from 12 p.m. ET on May 13. It has already been extended three times from 12 p.m. ET on April 13.

Concordia Bus Nordic is seeking approval of amendments and waivers to the note indenture and asking holders to forgo their right to participate in any change-of-control offer caused by the restructuring of Concordia Bus Nordic's parent, Concordia Bus AB.

The consent fee is €5 per €1,000 principal amount.

As of May 6, Concordia Bus Nordic had received consents for 13.55% of the notes, down from 20.48% at the previous announcement on April 29 and down from 23% of the notes at the announcement on April 14.

In March, Concordia Bus AB announced a restructuring under which its €160 million principal amount of 11% senior subordinated notes due 2010 will be exchanged for 96% of the company's ordinary shares.

Concordia is a Solna, Sweden, bus service operator.

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