Aim Telephones Inc, Parsippany, New Jersey signed final agreements with its primary lenders that restructure substantially all its debts, the company says. The agreements entered into by Aim establish a five-year term for repayment of outstanding bank loans with First Fidelity Bank NA, New Jersey which is owed $10.4m, and Bank of Tokyo Trust Co, owed $7.6m. The agreements also tie principal payments above pre-set levels to an excess cash flow formula. Aim also signed an agreement with Teachers Insurance and Annuity Association of America that eases the terms for repayment of principal and interest due Teachers agreed to capitalise $600,000 of accrued interest that was due on February 1, and to convert its existing $12m 10% convertible subordinated debentures into $12.6m 12% senior subordinated notes due February 1, 1998. The agreement ties payments of both principal and interest on the senior notes to an excess cash flow formula, with Teachers to capitalise future accrued and unpaid interest as additional 12% senior subordinated notes, and its co-operation wins it a warrant for 25% of the Aim’s common at $1.00 to $1.50 a share.
