NU Online News Service, Oct. 4, 11:54 a.m. – Penn Treaty American Corp., Allentown, Pa., is giving its noteholders more time to participate in its debt exchange.
The long-term care insurer has offered to exchange $74.75 million in subordinated convertible notes due in 2003 for the same amount of convertible notes due in 2008.
Penn Treaty is extending the deadline for participation a second time, to Oct. 10, from Oct. 3. Last week, the company extended the deadline to Oct. 3, from Sept. 26.
Holders had tendered $42 million in notes by the Sept. 26 deadline, and they tendered $6 million more by Oct. 3, bringing the total amount tendered to $48 million, Penn Treaty says.
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Penn Treaty reported Sept. 27 that it believed its noteholders would be tendering $10 million in additional notes, which would have brought the total to $52 million.
Now Penn Treaty says it hopes to arrange exchanges for $13 million in additional notes, which would increase the total value of the note exchange to $61 million.