Accident Exchange in restructuring talks, could defer notes payment

By Caroline Salls

Pittsburgh, July 9 - Accident Exchange Group plc has been in talks with its senior lender and asset-backed lenders to consider a potential restructuring of £50 million of 5.5% unsecured convertible loan notes due 2013, according to a company news release.

Accident Exchange said it has received assurances from the holders of more than 90% in value of the loan notes that the interest payment due on July 8 can be deferred as part of and pending the outcome of these discussions.

According to the release, the company's senior lender is willing to amend the terms of its £40 million senior credit agreement to extend the maturity date to an amortization running until 2013 from Sept. 30.

The extension would be subject to agreeing to final terms and Accident Exchange negotiating restructuring terms with its other stakeholders, including the noteholders.

In addition, as a holder of about 40% of the convertible loan notes, the senior lender is willing to consider converting its notes interest into an equity interest as part of a restructuring, subject to the support of the other noteholders.

The company said it is also in talks with a number of asset-backed lenders with a view to increasing available vehicle funding facilities after the refinancing.

Accident Exchange is a Coleshill, England-based company that provides support to the British automotive and insurance sectors.

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