Moser Baer to hold Aug. 31 meetings for holders of A, B convertibles

By Jennifer Chiou

New York, June 29 - Moser Baer India Ltd. announced that it will hold meetings on Aug. 31 for holders of its original $75 million of zero-coupon tranche A convertible bonds and original $75 million of zero-coupon tranche B convertible bonds.

The company is looking to holders to consider and approve the proposed restructuring of the commercial terms of the now combined $88.5 million of outstanding bonds.

Specifically, Moser Baer is seeking approval to permit it to redeem a portion of each bond at a cash amount of $50 per $1,000 face value, thus reducing the outstanding amount of each bond to $950.

The company would also like to substitute each outstanding bond with a new bond with a face value of $1,000 and an outstanding principal amount of $950 per bond.

Holders are further being asked to waive, effective June 20, the redemption premium that was payable on the bonds and to waive any defaults arising under the terms of the securities.

The company needs approval from holders of a majority of the bonds.

The bonds were issued on June 20, 2007 and were scheduled to mature on June 21, 2012.

Moser Baer previously informed bond trustee Citibank, NA, London Branch that it had been in discussions with bondholders.

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