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CDC REJECTS NOTE CONVERSION

Normally debt conversion is not something I write a lot about. But with Trey Resources having renegotiated its debt, this very recent SEC filing by CDC Software was also interesting. CDC's affiliate, CDC Delaware Corp., holds $124.775 million in principal, which the company said represents 74.7 percent of the total outstanding on 3.75 percent Senior Exchangeable Convertible Notes due 2011.

 

The news here is that CDC Software has received a notice that the parties holding the other 25.3 percent of the notes, with a face value of $42.225 million, have elected to exercise their ability to redeem the notes. Without going into the details, because of amendments executed by CDC Delaware on November 11, CDC Software has informed the holders of those notes that they can't exercise the Holder Redemption Provision, because it is no longer in force. The company expects to continue discussions with the debt holders. I would think if I held that debt I probably would want to keep talking too.

 

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