News

posted on 11 March 2008 03:14

The Tandberg bondholders meeting took place yesterday, March 10th and an equity subscription price of just NOK0.02/share (NOK - Norwegian kronor) was set.

Tandberg Daya is struggling to avoid bankruptcy by raising cash through a new share issue in a debt-for-equity swap. This subscription price is way below the NOK0.71 price of the shares now.

If the company recovers then the shares will rise in value and organisatons and people that participate in the subscription issue should make a profit - if the company recovers.

Arctic Securities, Tandberg Data's financial advisor, said that it aims to establish a group to guarantee NOK100 million from the new share issue and that NOK34 million has already been promised, presumably by the bondholders.

Tandberg Data's emergency general meeting is set for March 12th and it has to agree the scheme before it can go ahead. If it does then the subscription period will run from March 18th to April 1st which, as it is April Fools Day in the UK, is not a propitious date here in London.

[Chris Mellor.]