Dishman Pharmaceuticals solicits consents from convertible holders

By Angela McDaniels

Seattle, Feb. 7 - Dishman Pharmaceuticals and Chemicals Ltd. began soliciting consents from the holders of its $36 million principal amount outstanding of 0.5% foreign-currency unsecured convertible bonds due 2010 on Wednesday.

The company plans to obtain a $25 million loan to build new manufacturing plants in India and China and needs bondholder consent in order to pledge the new assets as security for the loan and to issue guarantees in favor of other Dishman Group companies for the loan, according to a notice sent to bondholders by the company.

Dishman said the new securities granted to the lenders will exclude routine additional modifications made to the company's existing plant, which will continue to be under negative lien in favor of the bondholders.

Bondholders must vote to grant or deny consent by April 30.

Dishman manufactures chemicals and active pharmaceutical ingredients and is based in Ahmedabad, India.

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