Printer Friendly

MEMORANDUM OF UNDERSTANDING SIGNED FOR MBO BONDS

 NEW YORK, Jan. 18 /PRNewswire/ -- Kramer, Levin, Naftalis, Nessen, Kamin & Frankel announced today on behalf of certain holders of 9-3/8 percent sinking fund bonds due Feb. 1 1996, 9-5/8 percent sinking fund bonds due Feb. 1, 1998 and zero coupon bonds due 2006 issued by Mutual Benefit Overseas, Inc., holding a majority in aggregate principal or accreted amount of bonds, that these holders have entered into a definitive Memorandum of Understanding in furtherance of a reorganization of MBO to be implemented under the United States bankruptcy laws. The Memorandum of Understanding embodies the terms of the bondholders' previously announced agreement in principle. The text of the Memorandum of Understanding is available from Kramer, Levin.
 The Memorandum of Understanding provides that the parties will support the proposals to be presented at a Jan. 20, 1993 meeting of MBO bondholders. Also, pursuant to the Memorandum of Understanding and certain agreements that it contemplates, MBO will be transferred to a receiving agent as soon as possible following the meeting; MBO will consent to a pending involuntary bankruptcy petition as soon as possible following the transfer; management for MBO will be appointed as soon as possible following the transfer; the principal and interest payments on the sinking fund bonds will not be made as due on Feb. 1, 1993; and, alternatively, application will be made to the bankruptcy court to approve a prompt special disbursement of the funds held for the Feb. 1, 1993 payment. The disbursement would include payment to the holders of the sinking fund bonds of one-third of the interest accrued on the sinking fund bonds and a simultaneous distribution of the balance of the funds, less a reserve for administrative costs and certain fees, pro rata to all bondholders including the holders of the zero coupon bonds, in accordance with their claims in the bankruptcy.
 As previously announced, certain holders of zero coupon bonds have filed an involuntary bankruptcy petition against MBO. These bondholders are also seeking an order of the bankruptcy court to prevent the Feb. 1, 1993 payment on the sinking funds bonds, as contemplated by the Memorandum of Understanding.
 -0- 1/18/93
 /CONTACT: Allan E. Reznick of Kramer, Levin, Naftalis, Nessen, Kamin & Frankel, 212-715-9100/


CO: Kramer, Levin, Naftalis, Nessen, Kamin & Frankel ST: New York IN: FIN SU:

AH-DO -- NY054 -- 5944 01/18/93 14:29 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 18, 1993
Words:392
Previous Article:GAMMA INTERNATIONAL EXPECTS FOURTH QUARTER LOSS
Next Article:ARVIND SANGER TO JOIN WASSERSTEIN PERELLA SECURITIES


Related Articles
Bondholder wealth effects of management buyouts.
AGREEMENT IN PRINCIPLE REACHED FOR MBO BONDS
CERTAIN MBO BONDHOLDERS FILE INVOLUNTARY PETITION
Struggling with City attitudes; Large international groups do not have to worry about the domestic economy.
ARENA DEAL CALLED RISKY BUSINESS : MEMO CITES FINANCIAL CONCERNS.
Legal and Finance: Costly Revenue twist to shares sold on after MBO deals.
(ECO) TURKISH AND RUSSIAN EXCHANGES SIGN COOPERATION DEAL.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters