Magyar Telecom noteholders OK restructuring deal; solicitation coming

By Caroline Salls

Pittsburgh, Sept. 9 - Magyar Telecom BV said holders of more than 70% of its €328.96 million of net total outstanding 9½% senior secured notes due 2016 consented to its July 15 restructuring agreement.

According to a news release, the noteholder group has agreed to support the restructuring and not take any enforcement action in connection with the company's failure to make a June 15 interest payment for a period that enables the restructuring to be implemented.

Magyar Telecom said the steps required to implement the restructuring are progressing as planned, with the restructuring expected to be completed before the "long-stop date" of Nov. 29.

Consent solicitation

In addition, the company said it is launching a solicitation of consents to make amendments to the existing notes indenture to facilitate the restructuring.

Each signatory to the restructuring agreement has agreed to vote in favor of the solicitation, the release said.

Magyar said no separate fee is payable in connection with the solicitation. However, a consent fee of 0.25% of holdings of existing notes will be payable on completion of the restructuring to noteholders that are party to or who consented to the agreement by Aug. 15.

The solicitation requires a majority in principal amount of the net total outstanding existing notes to vote in favor. Given the level of support for the restructuring agreement, the company said it believes that consent for the solicitation will be obtained.

Manager changes

Magyar Telecom also said TMF Management BV, Clear Management Co. BV and Lucas Duijsens resigned from its board of managers, effective Sept. 4.

They will be replaced by Michael Adams and Roy Arthur.

London-based Magyar provides telecommunications services through its subsidiary, Invitel.

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