Germany's Augusta proposes exchanging convertible for stock

New York, Sept. 27 - Augusta Technologie AG said it plans to restructure its 4% convertible bonds due 2005 by exchanging them for stock.

The Frankfurt am Main maker of niche high technology products currently has €75 million of the securities outstanding.

Augusta said the proposed transaction would create a "sustainable long-term capital and liquidity structure."

Currently 75% of the bonds are held by a small number of investors, the company noted.

Augusta added that it is holding talks with bondholders to negotiate the restructuring.

The company said the exchange ratio will be based on valuations of the company and the bond, which are currently being prepared.

A creditors' meeting will likely be held in November and the restructuring completed in January.

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