Brazil's TAM debenture holders grant debt coverage-related waiver

By Angela McDaniels

Tacoma, Wash., Feb. 8 - TAM SA received a waiver from the holders of its first public issue of unsecured debentures at a meeting on Feb. 7.

The holders of 89.38% of the outstanding debentures were represented at the meeting, and the holders of 87.38% of the debentures voted to grant the waiver, according to a 6-K filing with the Securities and Exchange Commission.

Following the vote, the debenture trustee is no longer required to accelerate the debentures at the end of the 2010 fiscal year if the company does not maintain a debt coverage ratio of at least 130%.

The holders will receive a waiver fee of 1.7% on March 1.

TAM is a airline based in Sao Paulo.

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