SAN DIEGO — Just as its "grace period" for back interest payments expired, Oak Industries Inc. on Friday extended until March 13 its offer to exchange stock, warrants and notes for $230 million in three outstanding debenture issues and further delayed back interest payments.
At least 70% of the debentures must be tendered to complete the offering, but so far only about 65% have been offered for exchange.
The cash-strapped media and cable-television equipment manufacturer said it will pay back interest on the 10.5% debenture issue when the exchange offer ends.
Oak said such a delay would normally have put it in default. But under the terms of that debenture offering, at least 25% of the holders have to agree to effectuate a default. As of Friday afternoon, more than 80% of the 10.5% debentures had been tendered, thus making a default impossible.