Biofrontera 8% convertibles holders agree to extend term, cancel interest at second meeting

By Jennifer Chiou

New York, July 23 - Biofrontera AG said that holders again agreed to extend the maturity of the company's 8% convertible bonds due 2010 to July 2, 2012 and cancel interest payments from Aug. 26, 2008 to Aug. 25, 2011.

On July 1, holders with a three-quarter majority opted for the extension and cancellation, but the decisions were not legally binding because the required majority of at least 50% of the outstanding bonds had not been achieved.

The second meeting took place in Leverkusen, Germany, on Thursday.

In addition, holders decided to waive the interest payments that accrued from Aug. 26, 2008 and July 23 and were not yet disbursed.

The company added that the decisions help to substantially improve its liquidity status. To cover the company's future need for liquidity and ensure its survival, a near-term capital increase will nevertheless be required, it noted.

Biofrontera is a Leverkusen, Germany, biopharmaceutical company.

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