Highland Capital, Pardus European report stakes in SunCom Wireless following exchange

By Lisa Kerner

Charlotte, N.C., May 17 - Following SunCom Wireless Holdings, Inc.'s announcement that it had completed an exchange agreement to reduce its debt and interest expense, investors led by Highland Capital Management, LP reported ownership of 17,858,699 shares, or 30.2%, of the company's outstanding stock.

Investors led by Pardus European Special Opportunities Master Fund L.P reported ownership of

11,435,433 shares, or 19.31%, of the Berwyn, Pa., wireless provider's outstanding stock.

The investors reported their shares on separate schedule 13Ds filed with the Securities and Exchange Commission.

On May 16, SunCom said it company said it reduced its consolidated debt by $731.6 million and annual consolidated interest expense by $66.2 million, resulting in greater financial flexibility for the company.

Under the exchange agreement, select bondholders who previously held 98.3% of indirect wholly owned subsidiary SunCom Wireless' total outstanding 9 3/8% senior subordinated notes due 2011 and 8¾% senior subordinated notes due 2011 have exchanged their notes for 87.8% of SunCom Wireless Holdings' common stock, a news release stated.

In addition to the exchange, the company completed the merger between SunCom Wireless Holdings and SunCom Merger Corp. in which each outstanding share of the company's class A common stock was converted into 0.1 of a share of class A common stock for the purpose of implementing a 1-for-10 reverse stock split.

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