International Wire says bondholders form committee, to start talks on restructuring, misses coupon

New York, Dec. 1 - International Wire Group Inc. said holders of its 11¾% senior subordinated notes and 14% senior subordinated notes have formed an ad hoc committee and that it expects to start talks on restructuring its debt.

The St. Louis wire manufacturer also said that it has not paid the coupon due Dec. 1 on its senior subordinated notes. There is a 30-day grace period before a default occurs.

The ad hoc committee represents holders of 61% of the notes. It has hired Stroock & Stroock & Lavan as its legal advisor and Houlihan Lokey Howard & Zukin as its financial advisor.

International Wire said it plans to start negotiations with the committee "as soon as practicable" on a recapitalization.

It previously announced that it had hired Rothschild, Inc. as financial advisor and Weil, Gotshal and Manges as legal advisors,

"We look forward to a successful completion of a recapitalization that will result in improved free cash flow, enhanced credit ratings and a stronger balance sheet through the reduction of certain of our debt," said Joseph Fiamingo, chief executive officer, in a news release. "The economic downturn that has impacted many of the end markets we serve has caused our balance sheet to become overleveraged."

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