Business
COMPTON TO MODIFY RECAPITALIZATION TO ADDRESS STAKEHOLDER FEEDBACK
COMPTON TO MODIFY RECAPITALIZATION TO ADDRESS STAKEHOLDER FEEDBACK
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\n Sep. 7, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nCALGARY, Sept. 7 /CNW/ - Compton Petroleum Corporation (TSX - CMT) is pleased to announce certain modifications to its previously announced recapitalization transaction (the "Recapitalization"). The Recapitalization includes a proposed Plan of Arrangement (the "Arrangement") under the Canada Business Corporations Act pursuant to which Compton Petroleum Finance Corporation ("Compton Finance") was to have exchanged all of the outstanding US$450.0 million 7 5/8 % senior notes due 2013 (the "Senior Notes") for a combination of cash, Compton Finance 10% senior notes due 2017 (the "New Notes") and Compton Finance 10% senior mandatory convertible notes due September 2011 (the "Mandatory Convertible Notes"), subject in each case to proration.\nUnder the terms of the modified Arrangement, if implemented, all holders of Senior Notes ("Noteholders') will have the right to elect to receive the following for each US$1,000 of principal amount of Senior Notes held:\n\n\n >\n\n\nThe US$45 million Mandatory Convertible Notes included in the Cash Alternative under the initial terms of the Arrangement will instead be allocated in the pro rationing process described below. Compton reserves the right to, in its discretion, replace some or all of the Mandatory Convertible Notes to be allocated in the pro rationing process with New Notes and/or cash.\nIf the aggregate elections (including deemed elections) result in Noteholders having elected to receive New Notes or cash in aggregate amounts that exceed the maximums for either or both of the New Note Alternative and the Cash Alternative, then Noteholders who have made (or are deemed to have made) an election for an alternative that is oversubscribed will, in addition to receiving the consideration from the alternative they elected, also receive their pro rata share of any unclaim...