Concurrent Computer Corp, Tinton Falls, New Jersey has reached agreement with holders of $100m of its bonds for a recapitalisation that will see $110.6m of debt owed to bondholders replaced with $55m of new senior subordinated notes and a full 70% of the fully diluted voting equity of the recapitalized company – in other words they will end up owning 70% of Concurrent, with the existing shareholders diluted to 30%. The new notes would be due December 31, 1997, and would pay about 13% – in additional notes for up to the first three years. The new notes would be subordinated to Concurrent’s debt with its bank group and to its foreign bank credit lines as the company deems appropriate. Concurrent hopes that the agreement will lead to dismissal of the motion for involuntary bankruptcy.
