LONDON Several holders of bonds in NXP Semiconductors (Eindhoven, the Netherlands) have started pushing for a more comprehensive restructuring at the chip maker following a partially successful debt swap earlier this week, according to a report from < i> Reuters .
"The exchange does not tackle the company's real issues, it just delays the inevitable a wider restructuring of NXP's finances," a source told the news agency.
NXP said earlier this week its creditors have offered to swap approximately $600 million of its debts for new secured bonds as the company continued efforts to whittle down hefty interest payments on its long-term loans.
Creditors offered to exchange an additional $53 million for the new secured debts being offered by NXP after the company extended the early tender date, raising the total of dollar-denominated debts offered to $420 million, or slightly more than 11 percent of the total. NXP euro-bond holders raised their contribution by 16 million euro to increase the total to 131 million euro, or 8.6 percent.
However, the some of the bondholders say the exchange is merely a "sticking plaster" over the company's problems, which they identify as falling sales, too much debt and excessive capacity in the semiconductor industry.
The Reuters source suggests the opponents may push for an extra cash injection by NXP's private equity owners.
Holders of senior bonds are also unhappy the debt-for-debt swap would see junior bondholders receive debt that ranked above their claims, the source said.
The bondholders have hired law firm Cadwalader, Wickersham & Taft LLP as adviser.
NXP offered bondholders a premium to exchange by March 16, but the initial take-up rate at that date was just 10 percent. The final deadline for the extended bond exchange offer is March 30.
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