The company said Friday that it has reached an agreement with 77% of two groups of its unsecured bondholders and 89% of senior lenders, under which each of these groups will receive cash payments in return for agreeing to reduce the principal balance of their debt or modify the terms of their loan. The bondholders have agreed to accept $345 million in cash and 35% equity in the restructured company in exchange for forgiving $984 million in debt. The group could receive another $50 million in payments based on Paragon’s future earnings. Additionally, in exchange for a $165 million cash payment, the balance on Paragon’s revolving loan will be reduced to $631 million and the maturity of that loan will be extended to 2021. As of Sept. 30, Paragon owed $697 million under that credit agreement, which matures in 2019. Current equity holders are slated to retain a 65% […]

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