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To pave the way for greater liquidity and institutional ownership, LanOptics may soon complete a final swap of equity for the remaining EZ shares.
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The creditors agreed to a swap of debt for equity for nearly half the losses and a new loan package covering the rest.
He accumulated a large position in unsecured Federal-Mogul bonds before its bankruptcy and they were swapped for equity as part of its reorganization plan.
Some $10.6 billion out of a total of over $17 billion will be swapped for equity to head off a financial crunch.
Central to the case is the nature of equity swaps, in which one party — typically a brokerage firm — promises to pay the other — in this case a hedge fund — all the economic rewards of owning a stock, and the fund promises to compensate the firm if the stock loses value.
Existing shareholders would be wiped out; depositors would get a debt/equity swap, for example one share of equity for each 100 euros of debt converted, and thus become the new owners of the bank.
The company in turn transferred the shares, valued at about $60 million, to Korea Exchange Bank and Korea Development Bank as incentive for creditors to agree on a debt-for-equity swap of approximately $2.5 billion.
It was that kind of pressure, he said, that led the creditors of Hynix Semiconductor, one of Korea's most troubled entities, to agree to a plan for providing about $500 million in fresh credit along with a debt-for-equity swap of about $3 billion.
Sri Lanka cannot repay what it owes, so it has negotiated a debt-for-equity swap of the Hambantota Port project.
Hynix's creditors had reportedly offered a debt-to-equity swap of $2.3 billion, along with about $1.3 billion in debt writeoffs and a writedown of their holdings of Hynix stock.
Meditation-based associations can lead to the swapping not just of energy, but of equity as well.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com