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together with accrued interest to the date fixed for
redemption.
As a mandatory sinking fund for the retirement of
the Debentures, the Company will, * * * pay to the
Trustee, on or before the business day next preceding
each sinking fund redemption date * * * an amount in
cash equal to five percent * * * of the aggregate
principal amount of Debentures outstanding at the close
of business on March 1, 1979 (excluding any Debentures
which shall have been converted on or prior to such
date pursuant to Article Four). * * * [Emphasis
added.]
Section 5.05 of the indenture provides that, in the event of
a notice of redemption pursuant to sections 5.01 and 5.02,
interest would accrue to a date specified in the notice and cease
to accrue thereafter. Section 5.05 further excludes converted
debentures from the determination of the amount of funds needed
after a redemption call. Section 5.07 provides for the repayment
to REMCC of the amount in the sinking fund not required for the
redemption of converted debentures.
Under Article Four of the indenture, a holder of debentures
had the right, at any time beginning March 31, 1969, and prior to
maturity or other redemption of the debentures, to exchange
debentures for common shares of Metals at a fixed price,
initially $46 per share (i.e., 21.74 shares per $1,000 principal
value of debentures), subject to adjustment under certain
circumstances. Section 4.01 provides that Metals would
effectuate any such exchange absent an agreement between Metals
and RMECC that RMECC should do so.
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Last modified: May 25, 2011