Brazil's TAM gets OK from 90% of holders to waive acceleration clause

By Susanna Moon

Chicago, Dec. 27 - TAM SA said holders representing 90.21% of its unsecured debentures voted to pass the proposed amendments related to a covenant breach at the meeting held on Dec. 22.

Of the 3.88% votes against the measure, 2% was represented by Ceres - Fundacao Seguridade Social and 1.88% was held by Banco Cooperativo Sicred SA, MBM Previdencia Privada, MBM Seguradora SA, according to a company announcement.

As previously noted, the Sao Paulo, Brazil-based airline asked holders to authorize the trustee of the debentures to forgo declaring the acceleration clause in connection with TAM's obligation to maintain a debt coverage ratio of at least 130%.

There were holders representing 94.09% of the notes.

The meeting was announced on Dec. 8 in a 6-K filing on Dec. 8 with the Securities and Exchange Commission.

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