UTStarcom solicits consents to waive default rights on 0.875% convertibles

New York, Dec. 22 - UTStarcom, Inc. said it has started soliciting consents from holders of its 0.875% convertible subordinated notes due 2008 to waive the rights to pursue remedies available under the note indenture with respect to some defaults.

The solicitation ends at 5 p.m. ET on Jan. 5.

The Alameda, Calif., networking company noted that it has not yet filed its 10-Q quarterly report for the period ended Sept. 30, 2006 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, the company said.

UTStarcom added 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 UTStarcom said it is soliciting consents that will give it until May 31, 2007 to become current with its filings.

UTStarcom will pay a fee of $5.492 million to holders who consent.

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.