Tekni-Plex gets needed consents for 10 7/8% notes, 8¾% notes ahead of deadline

By Jennifer Chiou

New York, Nov. 26 - Holders of a majority of Tekni-Plex, Inc.'s 10 7/8% senior secured notes due 2012 and 8¾% senior secured notes due 2013 have instructed their brokers to consent to the proposed amendments in the company's solicitation for the notes, according to an 8-K filing with the Securities and Exchange Commission.

The solicitation expires at 5 p.m. ET on Dec. 2.

Those who deliver consents will be entitled to a cash payment equal to $5.00 per $1,000 principal amount of notes.

The Somerville, N.J., company said that it is seeking consents to amend certain covenants in the indentures to waive the company's failure to comply with the requirement that it file an annual report on form 10-K for the fiscal year ended June 27, 2008 and a quarterly report on form 10-Q for the fiscal period ended Sept. 26, 2008.

Tekni-Plex is also seeking to waive its failure to deliver an officers' certificate to the trustee in connection with its fiscal year ended June 27, 2008 stating that, among other things, the company is not in default in the performance or observance of any of the terms, provisions and conditions of the indentures.

It is also looking to suspend through Dec. 30, 2009 its obligations under each of the indentures to file the reports.

The consent solicitation also seeks consents to direct the trustee to execute and deliver an amendment to the access, use and intercreditor agreement to reflect the company's incurrence of a new $15 million term loan.

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