EXHIBIT 99.2
DEBT RESTRUCTURING AGREEMENT
THIS AGREEMENT is made this 15 day of May, 2002 among COMMSCOPE, INC.
OF NORTH CAROLINA, a North Carolina corporation ("CommScope"), and CABLETEL
COMMUNICATIONS CORP., a corporation organized under the laws xx Xxxxxxx, Xxxxxx
("Cabletel").
W I T N E S S E T H
WHEREAS, Cabletel owes CommScope and its affiliates US$2,200,000, which
amount is past due (the "Past Due Receivable").
WHEREAS, as of the date hereof, Cabletel also owes CommScope an aggregate
amount of US$1,335,733.45, in respect of goods and services rendered by
CommScope to Cabletel, which amount (i) represents all amounts owed by Cabletel
to CommScope as of the date hereof (other than the oldest US$2,200,000 in
receivables which are represented by the Past Due Receivable) and (ii) is due
and payable on net sixty (60) day terms from the date of invoice, as more
particularly set forth in Schedule A.
WHEREAS, CommScope and Cabletel have agreed to convert the Past Due
Receivable into a Senior Subordinated Unsecured Note.
NOW, THEREFORE, the parties hereto agree as follows:
1. CommScope and Cabletel hereby agree to convert the Past Due Receivable
into a Senior Subordinated Unsecured Note, (the "Note") with the terms
and in the form set forth in Exhibit A hereto, which Note, fully
executed by Cabletel, will be delivered to CommScope upon execution of
this Agreement.
2. CommScope and Cabletel hereby agree that: (i) the aggregate amount of
US$1,335,733.45 set forth on Schedule A hereto (the "Schedule A
Receivables") represents all amounts owed by Cabletel to CommScope as
of the date hereof (other than the oldest US$2,200,000 in receivables
which are represented by the Past Due Receivable); and (ii) the
Schedule A Receivables are due and payable on net sixty (60) day terms
from the date of invoice. Cabletel hereby acknowledges and agrees that
it will pay to CommScope or its affiliates the Schedule A Receivables,
according to the due dates shown in Schedule A.
3. Cabletel and CommScope hereby agree that, if Cabletel desires to
purchase goods from CommScope or its affiliates after the date hereof,
the purchase price for such goods shall be paid (i) cash in advance if
the total amount due from Cabletel to CommScope and its affiliates
(other than amounts due under the Note but including outstanding and
then unpaid amounts of Schedule A Receivables) is equal to or greater
than US$1,500,000, and (ii) on sixty-day terms if the purchase price
for such
goods, plus amounts due to CommScope and its affiliates (other than
amounts due under the Note but including outstanding and then unpaid
amounts of Schedule A Receivables) is less than US$1,500,000.
4. Cabletel agrees to issue to CommScope a Common Stock Purchase Warrant
(the "Warrant") for 200,000 shares of common stock of Cabletel, at an
Exercise Price of Cdn.$1.640 per share on the terms and in the form
set forth in Exhibit B, which Warrant, fully executed by Cabletel,
will be delivered to CommScope upon execution hereof.
5. Cabletel represents and warrants to CommScope as follows:
a. Organization, Standing and Power. Cabletel is duly organized,
validly existing and in good standing under the laws of Ontario,
Canada and has all requisite power and authority to own, lease
and otherwise hold and operate its assets and to carry on
business as presently conducted.
b. Authorization; Enforceability. (i) Cabletel has full power and
authority to enter into and perform the Warrant, the Note, and
this Agreement; (ii) the execution and delivery of the Warrant,
the Note, and this Agreement by Cabletel and the consummation by
it of the transactions contemplated thereby have been duly
authorized by all necessary corporate action; (iii) each of the
Warrant, the Note, and this Agreement has been duly executed and
delivered by Cabletel and (iv) each of the Warrant, the Note, and
this Agreement constitutes valid and binding obligations of
Cabletel enforceable against Cabletel in accordance with its
terms.
c. No Conflicts. The execution, delivery and performance of the
Warrant, the Note, and this Agreement and the consummation by
Cabletel of the transactions contemplated thereby will not
conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or
give rise to any rights of termination, amendment, acceleration
or cancellation of, or result in the creation of a lien or other
encumbrance on any property or asset of Cabletel or any of its
subsidiaries pursuant to any agreement, indenture or instrument
to which Cabletel or any of its subsidiaries is a party, or
result in a violation of its certificate of incorporation or
by-laws or any law, rule, regulation, order, judgment or decree
applicable to Cabletel, any of its subsidiaries or by which any
property or asset of Cabletel is bound or affected. No consent,
authorization or order of, or filing or registration with, any
court or governmental agency or any other person is required for
the execution, delivery and performance by Cabletel of the
Warrant, the Note, or this Agreement.
6. CommScope represents and warrants to Cabletel as follows:
a. Total Amounts Owed. The Past Due Receivable and the Schedule A
Receivables represent all amounts owed by Cabletel to CommScope
as of the date of this Agreement.
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b. Organization, Standing and Power. CommScope is duly organized,
validly existing and in good standing under North Carolina law
and has all requisite power and authority to own, lease and
otherwise hold and operate its assets and to carry on business as
presently conducted.
c. Authorization; Enforceability. (i) CommScope has full power and
authority to enter into and perform this Agreement; (ii) the
execution and delivery of this Agreement by CommScope and the
consummation by it of the transactions contemplated hereby has
been duly authorized by all necessary corporate action; (iii)
this Agreement has been duly executed and delivered by CommScope
and (iv) this Agreement constitutes valid and binding obligations
of CommScope enforceable against CommScope in accordance with its
terms.
d. No Conflicts. The execution, delivery and performance of this
Agreement and the consummation by CommScope of the transactions
contemplated hereby will not conflict with, or constitute a
default (or an event which with notice or lapse of time or both
would become a default) under, or give rise to any rights of
termination, amendment, acceleration or cancellation of, or
result in the creation of a lien or other encumbrance on any
property or asset of CommScope or any of its subsidiaries
pursuant to any agreement, indenture or instrument to which
CommScope or any of its subsidiaries is a party, or result in a
violation of its certificate of incorporation or by-laws or any
law, rule, regulation, order, judgment or decree applicable to
CommScope, any of its subsidiaries or by which any property or
asset of CommScope is bound or affected. No consent,
authorization or order of, or filing or registration with, any
court or governmental agency or any other person is required for
the execution, delivery and performance by CommScope of this
Agreement.
7. This Agreement shall be governed by and construed in accordance with
the laws of the State of North Carolina without regard to conflicts of
laws principles or provisions. The parties waive all right to trial by
jury in any action, suit or proceeding brought to enforce or defend
any rights or remedies arising under or in connection with this
Agreement, whether grounded in tort, contract or otherwise.
8. Neither this Agreement nor any of the terms hereof or thereof may be
changed, waived, discharged, or terminated unless such change, waiver,
discharge or termination is in writing and signed by CommScope and
Cabletel.
9. This Agreement, together with the Note and the Warrant, constitutes
the entire agreement between the parties hereto with respect to the
subject mater hereof, and supersedes all prior agreements, written or
oral, with respect to the matters provided herein.
10. Any notice required to be given hereunder shall be sufficient if in
writing, and sent by facsimile transmission and by courier service
(with proof of service), hand delivery or
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certified or registered mail (return receipt requested and first-class
postage prepaid), addressed as follows:
If to Cabletel:
Cabletel Communications Corp.
000 Xxxxxxx Xx.
Xxxxxxx, Xxxxxxx, Xxxxxx L3S 3JI
Attention: Xxx Eilath, Executive Vice President and
Chief Financial Officer
Facsimile: (000) 000-0000
with a copy to:
Xxxxx Xxxxxxx Xxxxxxx & Xxxxx LLP
1251 Avenue of the Americas
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxx Xxxxxx of America
Attention: Xxxxxxxx Xxxxx, Esq.
Facsimile: (000) 000-0000
If to CommScope:
CommScope, Inc. of North Carolina
P.O. Box 1729
1100 CommScope Place SE
Hickory, North Carolina 28603-1729
United States of America
Attention: Xxxx Xxx, Vice President Customer Financial Services
Facsimile: (000) 000-0000
with a copy to:
Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx
Xxx Xxx Xxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxx Xxxxxx of America
Attention: Xxxxxxxxxxx Xxxx, Esq.
Facsimile: (000) 000-0000
or to such other address as any party or other addressee shall specify
by written notice so given, and such notice shall be deemed to have
been delivered as of the date so telecommunicated, personally
delivered or mailed.
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11. At any time or from time to time after the date hereof, the parties
agree to cooperate with each other, and at the request of any other
party, to execute and deliver any further instruments or documents and
to take all such further action as the other party may reasonably
request in order to evidence or effectuate the consummation of the
transactions contemplated hereby and to otherwise carry out the intent
of the parties hereunder.
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IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed on the date first written above.
COMMSCOPE, INC. OF NORTH CAROLINA
By: ______________________
Name:
Title:
CABLETEL COMMUNICATIONS CORP.
By: ______________________
Name:
Title:
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SCHEDULE A
SO SALES ORIG
DOC DOCUMENT DOC ORDER CUSTOMER DOC ORIGINAL
DUE DATE TYPE NUMBER TYPE NUMBER NUMBER REFERENCE TYPE DOCUMENT GROSS AMOUNT OPEN AMOUNT
-------- ---- ------ ---- ------ ------ ----------- ---- -------- ------------- -------------
05/14/02 RI 679021 SO 122913 103504 00000 XX 000000 $ 10,862.64 $ 10,862.64
00/00/00 XX 000000 SO 123841 103504 00000 XX 000000 $ 10,541.76 $ 10,541.76
00/00/00 XX 000000 SO 122907 103504 00000 XX 000000 $ 25,805.95 $ 25,805.95
00/00/00 XX 000000 SO 125134 103504 00000 XX 000000 $ 3,283.15 $ 3,283.15
00/00/00 XX 000000 SO 122913 103504 00000 XX 000000 $ 5,326.71 $ 5,326.71
00/00/00 XX 000000 SO 123841 103504 00000 XX 000000 $ 3,647.53 $ 3,647.53
00/00/00 XX 000000 SO 123841 103504 00000 XX 000000 $ 978.68 $ 978.68
05/21/02 RI 680995 SO 126546 103504 00000 XX 000000 $ 12,913.24 $ 12,913.24
05/23/02 RI 1103 SV 167 103504 35466 RI 1103 $ 3,800.00 $ 3,800.00
05/25/02 RI 678475 SO 122907 103504 00000 XX 000000 $ 1,970.40 $ 1,970.40
05/25/02 RB 35591 SO 78436 103504 00000 XX 000000 $ 109.07 $ 109.07
05/25/02 RB 35592 SO 70225 103504 00000 XX 000000 $ 151.00 $ 151.00
05/25/02 RB 35593 SO 70236 103504 00000 XX 000000 $ 96.00 $ 96.00
05/25/02 RB 35594 SO 100398 103504 00000 XX 000000 $ 89.56 $ 89.56
05/25/02 RB 35595 SO 97026 103504 00000 XX 000000 $ 333.70 $ 333.70
05/25/02 RB 35596 SO 70231 103504 00000 XX 000000 $ 200.00 $ 200.00
05/25/02 RB 35597 SL 73097 103504 00000 XX 000000 $ 353.92 $ 353.92
05/25/02 RB 35598 SO 89695 103504 00000 XX 000000 $ 234.81 $ 234.81
05/25/02 RB 35599 SL 75265 103504 00000 XX 000000 $ 26,896.32 $ 26,896.32
05/25/02 RB 35600 CD 22562 103504 31140 XX 000000 $ 1,056.00 $ 1,056.00
05/25/02 RB 35601 SO 94723 103504 00000 XX 000000 $ 1,345.41 $ 1,345.41
05/25/02 RB 35604 103504 RM00619807 $ 5,633.20 $ 5,633.20
05/25/02 RB 35605 103504 RV00518235 $ 20,400.00 $ 20,400.00
05/25/02 RB 35606 103504 VISA $ 4,543.32 $ 4,543.32
00/00/00 XX 000000 SO 122913 103504 00000 XX 000000 $ 2,032.80 $ 2,032.80
00/00/00 XX 000000 SO 126623 103504 00000 XX 000000 $ 3,675.00 $ 3,675.00
00/00/00 XX 000000 SO 122907 103504 00000 XX 000000 $ 3,800.03 $ 3,800.03
00/00/00 XX 000000 SO 126623 103504 00000 XX 000000 $ 4,218.75 $ 4,218.75
00/00/00 XX 000000 SO 126630 103504 00000 XX 000000 $ 2,450.00 $ 2,450.00
00/00/00 XX 000000 SO 126631 103504 00000 XX 000000 $ 2,940.00 $ 2,940.00
00/00/00 XX 000000 SO 126623 103504 00000 XX 000000 $ 4,900.00 $ 4,900.00
00/00/00 XX 000000 SO 126628 103504 00000 XX 000000 $ 2,597.00 $ 2,597.00
00/00/00 XX 000000 SO 126623 103504 00000 XX 000000 $ 8,575.00 $ 8,575.00
00/00/00 XX 000000 SO 126628 103504 00000 XX 000000 $ 3,234.00 $ 3,234.00
00/00/00 XX 000000 SO 126630 103504 00000 XX 000000 $ 1,764.00 $ 1,764.00
00/00/00 XX 000000 SO 126631 103504 00000 XX 000000 $ 1,764.00 $ 1,764.00
00/00/00 XX 000000 SO 113527 103504 00000 XX 000000 $ 68,620.22 $ 68,620.22
00/00/00 XX 000000 SO 111286 103504 00000 XX 000000 $ 100,607.52 $ 100,607.52
00/00/00 XX 000000 SO 119451 103504 00000 XX 000000 $ 60,869.19 $ 60,869.19
00/00/00 XX 000000 SO 115482 103504 00000 XX 000000 $ 14,748.48 $ 14,748.48
00/00/00 XX 000000 SO 119444 103504 00000 XX 000000 $ 27,704.58 $ 27,704.58
00/00/00 XX 000000 SO 119418 103504 00000 XX 000000 $ 190.50 $ 190.50
- 7 -
SO SALES ORIG
DOC DOCUMENT DOC ORDER CUSTOMER DOC ORIGINAL
DUE DATE TYPE NUMBER TYPE NUMBER NUMBER REFERENCE TYPE DOCUMENT GROSS AMOUNT OPEN AMOUNT
-------- ---- ------ ---- ------ ------ ----------- ---- -------- ------------- -------------
06/02/02 RI 668739 SO 115241 103504 00000 XX 000000 $ 1,721.25 $ 1,721.25
00/00/00 XX 000000 SO 115247 103504 00000 XX 000000 $ 4,778.00 $ 4,778.00
00/00/00 XX 000000 SO 119444 103504 00000 XX 000000 $ 6,922.01 $ 6,922.01
00/00/00 XX 000000 SO 115239 103504 00000 XX 000000 $ 3,920.00 $ 3,920.00
00/00/00 XX 000000 SO 119425 103504 00000 XX 000000 $ 15,078.24 $ 15,078.24
00/00/00 XX 000000 SO 119440 103504 00000 XX 000000 $ 2,048.40 $ 2,048.40
00/00/00 XX 000000 SO 119444 103504 00000 XX 000000 $ 8,049.13 $ 8,049.13
00/00/00 XX 000000 SO 115241 103504 00000 XX 000000 $ 495.00 $ 495.00
06/02/02 RI 669412 SO 115566 103504 00000 XX 000000 $ 1,241.84 $ 1,241.84
00/00/00 XX 000000 SO 119425 103504 00000 XX 000000 $ 25,328.72 $ 25,328.72
00/00/00 XX 000000 SO 119440 103504 00000 XX 000000 $ 2,415.36 $ 2,415.36
00/00/00 XX 000000 SO 119444 103504 00000 XX 000000 $ 8,613.36 $ 8,613.36
00/00/00 XX 000000 SO 115239 103504 00000 XX 000000 $ 3,622.00 $ 3,622.00
00/00/00 XX 000000 SO 115241 103504 00000 XX 000000 $ 7,350.00 $ 7,350.00
00/00/00 XX 000000 SO 115241 103504 00000 XX 000000 $ 2,499.00 $ 2,499.00
00/00/00 XX 000000 SO 115247 103504 00000 XX 000000 $ 2,450.00 $ 2,450.00
00/00/00 XX 000000 SO 119425 103504 00000 XX 000000 $ 10,012.80 $ 10,012.80
00/00/00 XX 000000 SO 119418 103504 00000 XX 000000 $ 2,012.80 $ 2,012.80
00/00/00 XX 000000 SO 115598 103504 00000 XX 000000 $ 2,610.00 $ 2,610.00
00/00/00 XX 000000 SO 119425 103504 00000 XX 000000 $ 625.80 $ 625.80
06/02/02 RI 683924 SO 126623 103504 00000 XX 000000 $ 4,900.00 $ 4,900.00
00/00/00 XX 000000 SO 126630 103504 00000 XX 000000 $ 2,450.00 $ 2,450.00
00/00/00 XX 000000 SO 126631 103504 00000 XX 000000 $ 3,675.00 $ 3,675.00
00/00/00 XX 000000 SO 126630 103504 00000 XX 000000 $ 4,900.00 $ 4,900.00
00/00/00 XX 000000 SO 126631 103504 00000 XX 000000 $ 4,900.00 $ 4,900.00
00/00/00 XX 000000 SO 126544 103504 00000 XX 000000 $ 83,366.40 $ 83,366.40
00/00/00 XX 000000 SO 126544 103504 00000 XX 000000 $ 12,094.08 $ 12,094.08
00/00/00 XX 000000 SO 126548 103504 00000 XX 000000 $ 5,891.43 $ 5,891.43
00/00/00 XX 000000 SO 126544 103504 00000 XX 000000 $ 42,046.08 $ 42,046.08
00/00/00 XX 000000 SO 129715 103504 00000 XX 000000 $ 2,740.00 $ 2,740.00
00/00/00 XX 000000 SO 129715 103504 00000 XX 000000 $ 239.25 $ 239.25
06/05/02 RI 685013 SO 126544 103504 00000 XX 000000 $ 11,741.67 $ 11,741.67
00/00/00 XX 000000 SO 129715 103504 00000 XX 000000 $ 504.00 $ 504.00
06/08/02 XX 000000 CO 29979 103504 00000 XX 000000 $ 365.63 $ 365.63
06/09/02 RI 672605 SO 115247 103504 00000 XX 000000 $ 4,704.00 $ 4,704.00
00/00/00 XX 000000 SO 122376 103504 00000 XX 000000 $ 74,624.87 $ 74,624.87
00/00/00 XX 000000 SO 122376 103504 00000 XX 000000 $ 74,599.80 $ 74,599.80
00/00/00 XX 000000 SO 122376 103504 00000 XX 000000 $ 54,559.52 $ 54,559.52
00/00/00 XX 000000 SO 122376 103504 00000 XX 000000 $ 9,648.44 $ 9,648.44
00/00/00 XX 000000 SO 123841 103504 00000 XX 000000 $ 5,690.30 $ 5,690.30
06/09/02 RB 36020 SO 99124 103504 00000 XX 000000 $ 119.89 $ 119.89
06/12/02 RI 686527 SO 126546 103504 00000 XX 000000 $ 1,202.40 $ 1,202.40
00/00/00 XX 000000 SO 129886 103504 00000 XX 000000 $ 68,347.20 $ 68,347.20
00/00/00 XX 000000 SO 129589 103504 00000 XX 000000 $ 15,706.04 $ 15,706.04
00/00/00 XX 000000 SO 129713 103504 00000 XX 000000 $ 8,428.00 $ 8,428.00
00/00/00 XX 000000 SO 129714 103504 00000 XX 000000 $ 2,776.43 $ 2,776.43
00/00/00 XX 000000 SO 129715 103504 00000 XX 000000 $ 250.00 $ 250.00
06/19/02 RI 687930 SO 129712 103504 00000 XX 000000 $ 10,780.00 $ 10,780.00
- 8 -
SO SALES ORIG
DOC DOCUMENT DOC ORDER CUSTOMER DOC ORIGINAL
DUE DATE TYPE NUMBER TYPE NUMBER NUMBER REFERENCE TYPE DOCUMENT GROSS AMOUNT OPEN AMOUNT
-------- ---- ------ ---- ------ ------ ----------- ---- -------- ------------- -------------
06/19/02 RI 687931 SO 129715 103504 00000 XX 000000 $ 980.00 $ 980.00
06/21/02 RI 688210 SO 129713 103504 00000 XX 000000 $ 3,038.00 $ 3,038.00
00/00/00 XX 000000 SO 129589 103504 00000 XX 000000 $ 67,040.22 $ 67,040.22
00/00/00 XX 000000 SO 129674 103504 00000 XX 000000 $ 7,802.71 $ 7,802.71
00/00/00 XX 000000 SO 129682 103504 00000 XX 000000 $ 20,628.01 $ 20,628.01
00/00/00 XX 000000 SO 129690 103504 00000 XX 000000 $ 68,530.51 $ 68,530.51
00/00/00 XX 000000 SO 129886 103504 00000 XX 000000 $ 48,113.80 $ 48,113.80
00/00/00 XX 000000 SO 129589 103504 00000 XX 000000 $ 21,095.98 $ 21,095.98
00/00/00 XX 000000 SO 129674 103504 00000 XX 000000 $ 7,185.60 $ 7,185.60
00/00/00 XX 000000 SO 129682 103504 00000 XX 000000 $ 9,389.44 $ 9,389.44
00/00/00 XX 000000 SO 129690 103504 00000 XX 000000 $ 3,621.60 $ 3,621.60
------------- -------------
$1,335,733.45 $1,335,733.45
============= =============
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