UTStarcom solicits consents for 0.875% convertibles

By Jennifer Chiou

New York, July 19 - UTStarcom, Inc. announced the launch of a consent solicitation for its 0.875% convertible subordinated notes due 2008.

The solicitation ends at 5 p.m. ET on July 26.

The Alameda, Calif., networking company is soliciting consents for a proposed waiver to any default or event of default that may have arisen as a result of its failure to timely file with the Securities and Exchange Commission and furnish to the trustee copies of certain reports and other information required under the Securities Exchange Act of 1934.

The amendments will also provide that, in addition to regularly scheduled interest payments, the notes will accrue special interest at a rate of 9.25% per year, which is an increase of 2.5% over the current rate of 6.75% per year.

As previously disclosed, UTStarcom has not yet filed with the SEC its 10-Q for the quarter ended Sept. 30, 2006, its 10-K for the fiscal year ended Dec. 31, 2006 and 10-Q for the quarter ended March 31.

The company is seeking consents from holders of a majority of notes.

The solicitation requires the trustee to receive an officers' certificate of UTStarcom that the conditions have been satisfied as well as the delivery of a second supplemental indenture.

Global Bondholder Services Corp. is the information agent and tabulation agent (866 937-2200 or call collect 212 430-3774). Citi is the solicitation agent (800 558-3745 or call collect 212 723-6106).

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