Teksid Aluminum begins another consent solicitation for 11 3/8% notes

By Angela McDaniels

Seattle, Sept. 25 - Teksid Aluminum Luxembourg Sarl, SCA said it began soliciting consents from holders of its 11 3/8% senior notes due 2011 to amend the note indenture.

According to a company news release, the proposed amendments will:

• 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.

The consent solicitation will expire at 10 a.m. ET on Oct. 1. Noteholders will not receive a consent fee.

Teksid Aluminum needs consents from holders of at least a majority of the notes.

Houlihan Lokey Howard & Zukin (Europe) Ltd. and Cadwalader, Wickersham & Taft LLP, advisers to the ad hoc committee of noteholders, believe the noteholders will give the needed consents, the company said.

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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