Avanti gets holder support for scheme under 12%/17˝% notes due 2023

By Susanna Moon

Chicago, March 20 – Avanti Communications Group plc said it obtained approval at a meeting held Tuesday for its scheme from holders of its 12%/17˝% senior secured notes due 2023.

Creditors holding about 98.3% principal amount of the notes were represented at the meeting and 100% of the votes cast were in favor of the scheme, according to a company announcement.

The company said it will now ask the High Court of England and Wales to sanction the scheme at a hearing expected to occur on March 26.

As reported Feb. 23, Avanti made a Chapter 15 bankruptcy filing on Feb. 21 in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. recognition of its scheme of arrangement proceedings currently pending before the High Court of Justice of England and Wales.

As previously reported, the English High Court approved Avanti’s request to schedule the holder meeting for Tuesday.

If successful, the scheme will result in the exchange of all of the outstanding 2023 notes for new ordinary shares representing 92.5% of the enlarged issued ordinary share capital of the company immediately following the swap.

Avanti previously said implementation of the debt-for-equity swap under the scheme is also conditional upon shareholder approval of the issue of the new shares at a general meeting expected to be held in April.

Through the Chapter 15 filing, the company is also seeking U.S. court recognition of the scheme sanction order.

Avanti is a London-based provider of satellite communications in Europe, Africa and the Middle East. The Chapter 15 case number is 18-10458.

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