Canaccord Genuity Hawkpoint advises Committee of Bondholders on restructuring of Euro 400m 4% Convertible Bond

In 2000, EM.TV raised 400m via a 4% convertible maturing in February 2005. Following a series of adverse developments including the purchase and subsequent sale of a 50 per cent holding in Formula I, a financial crisis evolved. The share price fell sharply to Euro 0.75, and the conversion price was over Euro 106 per share making conversion uneconomic. Furthermore the bond was due to mature and EM.TV would not be able to repay the Bond. Hawkpoint was appointed by the Ad-Hoc Committee of Bondholders, as advisor, in the restructuring negotiations with the company. Under the agreement participating bondholders received the following consideration:

  • Euro 20m in cash
  • Euro 50m 8% senior secured notes with warrants attached
  • Euro 150m Zero Coupon Notes
  • 60% equity ownership in the newly restructured EM.TV AG

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