Orckit and the Series A bondholders have petitioned the Tel Aviv District Court to stop its review of the company's petition for a stay of proceedings.
Orckit Communications Ltd. (Nasdaq: ORCT; TASE: ORCT) today announced it has reached an agreement in principle with the representatives of the holders of its Series A bond. Under the pending agreement, the March 2012 early redemption right on a significant portion of the bonds' principal will be deferred, and there will be a lower conversion price for them. The company and the bondholders have therefore petitioned the Tel Aviv District Court to stop its review of the company's petition for a stay of proceedings, which it filed last week.
Orckit and the bondholders intend to reach a detailed agreement as soon as possible and submit to all stakeholders for approval, including both the Series A and Series B bondholders, as well as the shareholders.
Orckit's share price rose 8.9% by mid-afternoon on the TASE to NIS 3, and rose 9.7% in premarket trading on Nasdaq to $0.79, giving a market cap of $17 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012