WESTBOROUGH, Mass.-Arch Communications Group Inc. announced it will make certain modifications to its merger agreement with MobileMedia Corp. in response to recent capital market volatility.
Arch has agreed to modify the terms to MobileMedia’s unsecured creditors, incorporating a Market Price Protection Mechanism that, if used, would entitle MobileMedia unsecured creditors to purchase shares of Arch common stock at a lower price. Arch shareholders would receive lower priced warrants or at their option, rights to maintain a fully diluted equity interest equal to about 32 percent of the combined company.
Arch said it plans to file an 8-K with the Securities and Exchange Commission with the amended agreements shortly.
Last Friday the U.S. Bankruptcy Court for the District of Delaware approved the provisions of the Arch-MobileMedia merger agreement relating to exclusivity, break-up fees and expense reimbursement.
