Keystone noteholders extend deferral of right to act on default

New York, Dec. 31 - Keystone Consolidated Industries, Inc. said holders of its 9 5/8% senior secured notes have extended their deferral of their right to take action on the company's default.

The Dallas, Texas-based fencing, wire and construction products company said holders of more than 75% of the $100 million principal amount of the notes had agreed to the extension, which now runs to Feb. 15, 2002.

Keystone is currently waiting for the Governor of Illinois to sign legislation approving loans from state funds of up to $10 million that could be available to the company for its restructuring. The company also said it is talking to financial institutions about obtaining term financing to provide liquidity for its operations.

The discussions with noteholders are aimed at achieving an out-of-court restructuring of the debt which would include exchanging the senior secured notes for either a discounted cash amount (subject to an aggregate limit for holders electing this option) and common stock; or new preferred equity and subordinated debt securities.

Keystone went into default on the notes after failing to make the interest payment due Aug. 1, 2001.

End

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.