| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers U > Headlines for UTStarcom Inc. > News item |
UTStarcom gets consents to waive default rights on 0.875% convertible notes
By Laura Lutz
Des Moines, Jan. 9 - UTStarcom, Inc. announced that it received consents from majority of holders of its 0.875% convertible subordinated notes due 2008 by the expiration of its consent solicitation at 5 p.m. ET on Jan. 9.
The consents allowed the company to temporarily waive the rights to pursue remedies available under the note indenture with respect to some defaults. The waiver became effective on Jan. 9.
The Alameda, Calif., networking company already noted that it has not yet filed its 10-Q quarterly report for the period ended Sept. 30 with the Securities and Exchange Commission.
The trustee contends that the filing delay is a default under the indenture and has given UTStarcom a notice of default.
UTStarcom previously said that it believes that the notice of default is invalid and without merit, in part because the indenture does not specify a time period within which UTStarcom must file its report with the SEC.
However, the waiver approved by the consents solicitation gives the company until May 31 to become current with its filings.
The solicitation was originally set to end at 5 p.m. ET on Jan. 5. It began on Dec. 22.
Under the terms of the solicitation as modified on Jan. 5, the company will pay an additional 6.75% per year in special interest from Jan. 9 to May 31, unless the notes are earlier repurchased or converted.
The company had originally planned to instead pay a total fee of $5.492 million to holders who consented.
Citigroup Global Markets Inc. is solicitation agent (800 558-3745 or 212 723-6106). Global Bondholder Services Corp. is information agent (866 794-2200 or 212 430-3774).
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.