Subex convertible holders agree to defer next two interest payments

New York, July 6 – Subex Ltd. said holders of its $127,721,000 of 5.7% secured convertible bonds due 2017 have agreed to defer the interest payments due on July 6 and on Jan. 6, 2016.

The coupons will now be paid at maturity or when the bonds are repaid early, according to an announcement from the company.

Bondholders approved the deferral at a meeting held at 11 p.m. ET on July 2.

Subex said it requested permission not to make the payments on time because it does not have sufficient cash to pay the coupons.

Waiving the payment will avoid a default on the bonds.

Unless a further restructuring is agreed with creditors, a default could lead to the insolvency of the company, Subex warned.

Subex provides business support systems for communications service providers and is based in Bangalore, India.

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