Bank Offered Deal to Boost Capital: Bank...
From Times Staff and Wire Reports
Bank Offered Deal to Boost Capital: Bank of New England Corp. was offered a debt-for-equity swap. Committees representing holders of $705 million worth of Bank of New England bonds have agreed to exchange their bonds for stock that would give them 92% ownership of the ailing Boston company. Under the deal, the debt would be reduced to $100 million from $705 million. The difference, or $605 million, would be converted to equity capital for the bank.
