Wednesday, September 17, 2014

"Aurelius Supports NII’s Swift Emergence from Chapter 11" $NIHD

Press release from NIHD bondholder Aurelius

We have taken the lead among bondholders in supporting a plan that would allow the Company to emerge from Chapter 11 swiftly, by deferring until after emergence the resolution (through litigation or settlement) of many inter-creditor disputes. Aurelius was ready last week to enter into a binding agreement to support a plan (the “Reserve Plan”) that would have:
Converted all $4.35 billion of NII bonds into 100% of the reorganized company’s equity (before taking into account the rights offering mentioned below and any management incentive plan).
Allocated that equity among the bondholders in accordance with the absolute-priority rule.
Raised fresh equity through a rights offering. Aurelius offered to backstop $125 million of that rights offering.
Deferred all inter-creditor disputes until after NII emerges from Chapter 11. A portion of the new equity would be placed in reserve and released as each dispute is resolved, whether through litigation or settlement. (Any settlements reached before emergence would be taken into account in the initial distribution of shares at emergence.)

No comments: