Liberty avoids default on 3.95% convertibles; holders given put option

By Lisa Kerner

Charlotte, N.C., March 10 - Liberty International plc's bond trustee agreed not to treat a default on the company's £240 million 3.95% convertible bonds due Sept. 30, 2010 as a default because the company agreed to put £79,244,000, the amount of the bonds currently outstanding, and £1,565,069, the interest due on the final interest payment date, into an account with the trustee, according to a company news release.

The default will occur when Liberty carries out the planned demerger of its central London focused property investment and development businesses.

Bondholders may require the company to redeem the convertibles from March 10 to the date falling 14 days prior to the final maturity date under the terms of a second supplemental deed trust.

Liberty International is a London real estate company.

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