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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: NRugg who wrote (6283)	9/10/1999 11:52:00 PM
From: Astro59	Read Replies (1) \| Respond to of 6570

I'm talking about the 8.5% Convertible bonds which Zenith called for redemption in Dec. of 1997 at 104% of principal. The bonds were listed at substantially less than that in market trading. Why Zenith did that has always had me wondering who the company was bailing out. Look up this form on Free Edgar "ZENITH ELECTRONICS CORP Form: 10-Q Filing Date: 11/12/97 As a result of this new financing, the company has called for redemption on December 5, 1997, its 8.5 percent Senior Subordinated Convertible Debentures due November 2000. There is currently $23.8 million principal amount of such debentures outstanding and the redemption price of such debentures will be 104 percent of such principal amount plus accrued interest through the redemption date. The company also plans to call for redemption in January 1998 its 8.5 percent Senior Subordinated Convertible Debentures due January 2001. There is currently $0.5 million principal amount of such debentures outstanding." Why would a company in financial trouble call bonds at 104% of par when they could have bought many of the bonds substantially cheaper on the open market?????????? On the surface, it does not look like the company was acting in the best interests of its shareholders or other bondholders