C&D launches offer to exchange debt for equity

C&D Technologies Inc. began a debt-for-equity swap on Thursday in an effort to restructure its finances.

The Blue Bell maker of power systems intends to exchange all of its outstanding convertible senior notes for up 95 percent of the shares of its common stock.

The move comes one month after C&D disclosed that it would have to restructure its finances because the threat of being delisted by the New York Stock Exchange would trigger an acceleration in the payment of the principal amounts of those notes.

The regulatory arm of the New York Stock Exchange suspended trading in C&D shares as of Oct. 8. C&D is appealing that suspension.

In a statement, C&D said that if it is unable to complete the debt exchange offer, the company "will be unable to repay its current indebtedness from cash on hand or other assets." The offer is set to expire Nov. 18.

C&D shares, which currently trade over-the-counter under the ticker symbol "CHHP," closed Wednesday at 14 cents per share, unchanged.

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