MVP bondholders approve plan

Holders of MVP Capital’s (TSE) 5.75% convertible Swiss Bonds have approved all matters relating to a proposed reorganization that will enable them to exchange their bonds for cash and preferred shares of MVP.

Under a reorganization plan approved Dec. 11, MVP is redeeming all outstanding bonds on the basis of a cash payment of CHF900 ($756) and one series A preferred share for each 5,000 Swiss franc par value bond. A redemption notice has been issued and all of the outstanding CHF13.3 million ($10.7 million) bonds are expected to have been redeemed by year-end in exchange for CHF2.4 million ($1.9 million) cash and 2,658 preferred shares. The preferred shares are convertible into 67 million common shares or 50% of the resulting equity of MVP. By redeeming all of the bonds, MVP will eliminate all debt except that relating to the Valdez gold project in Alaska which is expected to produce 55,000 oz. this year. MVP holds a 25% indirect interest in Valdez Creek via a 94% owned subsidiary. The balance is held by Cambior (TSE).