promos-attempts-cb-buyback-after-failing-to-meet-puts

ProMOS attempts CB buyback after failing to meet puts

The Taiwanese DRAM manufacturer secures a syndicated loan to cover a tender at 26.5 cents on the dollar, but more debt redemptions ahead suggest the company's troubles are not over.

ProMOS Technologies is joining a growing list of Asian companies trying to restructure their debts to ease the pressure imposed by falling equity and bond prices as well as difficult operating conditions. According to a statement issued Friday, the Taiwanese memory chip maker is offering to buy back all its outstanding zero-coupon convertible bonds due 2012 at a maximum price of 26.5 cents on the dollar. If all bondholders were to accept the offer it will cost the company $88.9 million, which compares with an initial principal of $350 million.

Contrary to earlier CB buyback offers by KCC and Olam, and the straight buyback tenders by Galaxy Entertainment and Nine Dragons, where the companies...

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