Moser Baer schedules meeting for 0% convertible holders on Jan. 21

By Marisa Wong

Madison, Wis., Nov. 26 - Moser Baer India Ltd. notified holders of its zero-coupon tranche A convertible bonds and zero-coupon tranche B convertible bonds that it expects bondholders meetings to take place on Jan. 21, according to a company notice filed with the Bombay Stock Exchange.

As previously reported, the company wants to restructure the commercial terms of the convertibles, which were scheduled to mature on June 21, 2012.

The company said it will provide bondholders with details relating to restructuring options at least 21 days before the meetings.

According to the notice, the final terms of the restructuring options are expected to include a substitution of the outstanding bonds for new convertible bonds or a new foreign currency loan.

Background

On June 29, Moser Baer announced plans to hold a bondholder meeting on Aug. 31. It later canceled the meeting and said it would issue a new meeting notice to bondholders on Sept. 7.

On Sept. 17, the company said it was still working out the details of a consent solicitation for the convertible bonds and expected to issue a meeting notice no later than Oct. 5.

At the Aug. 31 meeting, Moser Baer was going to seek approval to redeem a portion of each bond at a cash amount of $50 per $1,000 face value, thus reducing the outstanding amount of each bond to $950. The company would then substitute each outstanding bond with a new bond with a face value of $1,000 and an outstanding principal amount of $950 per bond.

Holders were also going to be asked to waive, effective June 20, the redemption premium that was payable on the bonds and to waive any defaults arising under the terms of the securities.

The company originally issued $75 million of each series of convertibles. A combined $88.5 million of convertibles remain outstanding.

Moser Baer is a New Delhi-based optical media manufacturer.

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