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ASAT gets consents needed from 9¼% noteholders to begin liquidation
By Angela McDaniels
Tacoma, Wash., Feb. 4 - ASAT Holdings Ltd. subsidiary New ASAT (Finance) Ltd. received consents from holders of 59.05% of its $150 million of 9¼% senior notes due 2011, according to a company news release.
A consent solicitation for the notes began Jan. 25.
The company was seeking consents to amend the indenture governing the notes in order to allow the sale of ASAT Ltd. to Global A&T Electronics Ltd., the parent company of United Test and Assembly Center Ltd.
The amendments changed the merger covenant, the limitation on the sale of assets covenant, the limitation on transactions with affiliates covenant, the change-of-control provisions and the substitution of successor provisions in the indenture.
The consent solicitation was set to expire at 5 p.m. ET on Feb. 4, but the company completed the sale to Global A&T once it had received consents from the holders of a majority of the notes. It will now begin voluntary liquidation proceedings.
The proceeds of the sale constitute substantially all of the group's assets and will be distributed to its creditors, although ASAT Holdings warned that the proceeds will not be able to discharge its financial liabilities in full.
When the consent solicitation began, ASAT Holdings estimated that noteholders will recover 20.5 cents or less on the dollar.
The liquidation will require the approval of the shareholders of the company as a special resolution.
ASAT Ltd. is a provider of semiconductor package design, assembly and test services based in Hong Kong and Milpitas, Calif. Global A&T plans to change its name to UTAC Hong Kong Ltd.
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