Magyar Telecom receives U.S. recognition of British proceedings

By Jim Witters

Wilmington, Del., Dec. 11 - Magyar Telecom BV received recognition that its scheme of arrangement was sanctioned by the High Court of Justice in England and Wales, according to a Dec. 11 filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Magyar expects its restructuring to take effect on Dec. 12, and creditors should expect to receive their restructuring consideration entitlements and/or cash option entitlement on that date.

Following the effective date, Magyar will become 49% owned by EquityCo, through which the note creditors will hold the equity interests they will receive as part of the restructuring.

Under the cash option, the clearing price will be €1,000 for every €1,000 of new notes entitlement successfully tendered.

The total sum to be paid to note creditors under the cash option will be €14.95 million.

London-based Magyar provides telecommunications services through its Budaors, Hungary-based subsidiary, Invitel. The company filed Chapter 15 bankruptcy on Oct. 29 in the U.S. Bankruptcy Court for the Southern District of New York under case number 13-13508.

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