XXI Century outlines debt restructuring plan

In a press release yesterday, XXI Century (XXIC LN) announced that it was soliciting consent for a proposal to restructure its USD 175 mln Eurobond issue that matures in 2010. Among the terms XXI Century is proposing are: extending final maturity date to Nov. 24, 2014 with principal installments to be paid on an annual basis until then, a change in the interest rate from 10% p.a. to 9% p.a. from effective date to Nov. 24, 2009 and from 15% p.a. after Nov. 24, 2009,  removal of the put option requiring the company to redeem their notes on July 8, 2009 or afterward, etc. XXI Century said that noteholders who voted in favor of the restructuring would be entitled to a consent fee in the form of depositary interests representing up to 5% of issued share capital on a diluted basis and warrants for the right to subscribe to depositary interests for up to 10% of issued share capital on a diluted basis at a subscription price of USD 0.01 per share. XXI Century said it would announce an EGM of shareholders shortly to approve amendments necessary to allow restructuring to take place.