Magyar Telecom extends exchange solicitation deadline for notes

By Jennifer Chiou

New York, Nov. 26 - Magyar Telecom BV announced that it has extended the exchange solicitation for its senior secured notes due 2016 to noon ET on Nov. 28 from 8:30 a.m. ET on Nov. 26.

The company noted that it will move forward with its meeting of creditors on Nov. 27 for voting on the company's scheme of arrangement.

As reported, Magyar said the scheme of arrangement is tied to its proposed financial restructuring, which is based on a July 15 agreement. Under an agreement, holders of more than 70% of the company's notes said they would support the restructuring via a scheme of arrangement or an exchange solicitation.

As of the close of business on Nov. 26, the company had received tender instructions from holders of €290,164,000, or 88.21%, of the notes, just shy of the 90% threshold needed to implement the exchange solicitation.

In a press release, the Magyar is urging those who submitted their custody instructions but have not delivered their account holder letter to do so.

As previously reported, Magyar said that it obtained the consents for amendments and waivers to its 9½% notes, which were needed to facilitate its planned restructuring. The consent solicitation began Sept. 9.

The company said on Sept. 9 that holders of more than 70% of its €328.96 million of net total outstanding 9½% notes consented to its July 15 restructuring agreement.

The noteholder group agreed to support the restructuring and not take any enforcement action in connection with the company's failure to make a June 15 interest payment for a period that enables the restructuring to be implemented.

Magyar Telecom said the restructuring was expected to be completed before the "long-stop date" of Nov. 29.

London-based Magyar provides telecommunications services through its Budaors, Hungary-based subsidiary, Invitel.

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