I have been a holder of the Zenith Debentures for many years, I have followed Bob's efforts on behalf of the shareholders with much
appreciation. I received a 4 page letter and a Disclosure Statement
of about 350 pages yesterday. I think it will be of interest to stockholders. The letter says that a majority in numbers that hold
66 2/3% of the dollar value of debt can accept the restructuring, but note the effect of checking Item 5.
"If you hold our subordinated debt and do not
wish to consent to the releases granted in favor of
certain directors of the Company, certain investors in
the Company, certain holders of the subordinated debt
as provided in the restructuring plan, you should check
the box under Item 5 of your Ballot. The Company is
aware that certain security holders have asserted or may
assert that claims exist against one or more of the
investors and/or directors designated by LG Electronics
Inc. relating to the development of the proposed
restructuring. Such claims include or might include
alleged breach of fiduciary duties, violation of
securities law, or other conduct allegedly inconsistent
with applicable law. To the extent any such claims
exist, and to the extent that such claims are held by
the Company or by holders of the subordinated debt that
have accepted the restructuring, or if the class of
holders of subordinated debt has voted in favor of the
restructuring or if the holder of subordinated debt is
entitled to receive a distribution of property under the
restructuring, such claims will be released by the terms
of the restructuring, unless such holder of subordinated
debt has marked a ballot so as not to consent to the
releases. Moreover, all of the directors, investors
and holders of subordinated debt entitled to receive
the releases, including the directors designated by LG
Electronics Inc., would receive the benefits of the
exculpation provisions of the of the restructuring,
which might impair certain causes of action not affected
by the releases in the restructuring.
It is a condition to consummation of our restructuring
plan that no more than 5% of the holders of subordinated
debt shall have checked the box under Item 5." |
