Teksid Aluminum gets consents to amend 11 3/8% notes

By Laura Lutz

Des Moines, Oct. 2 - Teksid Aluminum Luxembourg Sarl, SCA received the consents it needed to amend its 11 3/8% senior notes due 2011 in a consent solicitation that ended on Oct. 1.

According to a news release, the company received consents from holders of about 84.34% of the notes. The company needed consents from holders of a majority of the notes.

The amendments have now become operative. As previously reported, the amendments:

• Allow the sale of Teksid Deutschland GmbH, TK Aluminum-France SAS and, indirectly, TK Aluminum-France's subsidiaries to Bavariaring 0906 GmbH;

• Allow the extinguishment of some intercompany obligations, including obligations owed by Teksid Aluminum to some of TK Aluminum-France's subsidiaries and the obligations owed by some of TK Aluminum-France's subsidiaries to certain Teksid Aluminum subsidiaries; and

• Allow Teksid Aluminum to capitalize or convert to equity a €135 million intercompany loan owed to it by TK Aluminum-France.

Noteholders did not receive a consent fee.

Houlihan Lokey Howard & Zukin (Europe) Ltd. and Cadwalader, Wickersham & Taft LLP acted as advisers to the ad hoc committee of noteholders. When the consent solicitation was announced, on Sept. 25, Teksid said that the advisers believed that the noteholders would give the needed consents.

This is the sixth consent solicitation the company has held for the 11 3/8% notes since March.

Teksid Aluminum Luxembourg, a maker of aluminum engine castings for the automotive industry, is a subsidiary of Carmagnola, Italy-based TK Aluminum Ltd.

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