Teksid seeks consent to amend 11 3/8% notes

By Susanna Moon

Chicago, July 13 - Teksid Aluminum Luxembourg Sarl, SCA said it began soliciting consents from holders of its outstanding 11 3/8% senior notes due 2011 to amend the indenture.

The consent solicitation expires at 10 a.m. ET on July 18.

The company is soliciting consents to waive default claims arising from the company's failure to comply with a specified provision in the indenture; to extend the time by which it must make offers to purchase the notes after the sale of Teksid Aluminum Poland S.p. z.o.o. and the company's equity interests in Nanjing Teksid Aluminum Foundry and Cevher Dokum Sanayi AS to Aug. 15, 2007; to extend the time by which it must use the Fiat payment and escrow amount to no later than 10 business days after receipt of the payment, but not before Aug. 15; and to allow payment of the interest due on July 15 to be deducted from the proceeds used to fund the tender offers.

Teksid said it will make the July interest payment promptly on receipt of consents.

Holders will not receive consent fees related to the consent solicitation, the company said.

On June 11, Teksid announced the receipt of the necessary consents to amend the 11 3/8% notes in a previous solicitation.

As of noon ET on June 7, the company said it received consents from holders of about 70% of the €205.598 million of notes to amend the note indenture and to waive its obligation to tender for the notes within 30 days of its sale of Teksid Aluminum Poland Sp zoo.

That amendment allowed the sale of the company's equity interest in Cevher Dokum Sanayi AS to the majority owner, Cevher Jant Sanayi AS, and the waiver extended the date by which Teksid must hold a tender offer for the notes to June 19 from May 18.

On May 21, parent company TK Aluminum Ltd. said that holders of a majority of the notes had agreed in principal to the amendments and the waiver.

Teksid Aluminum Luxembourg, a maker of aluminum engine castings for the automotive industry, is a subsidiary of Carmagnola, Italy-based TK Aluminum.

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