EX-99.2 4 t07335orexv99w2.txt EXHIBIT NO. 99.2 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 of Ontario, Canada ("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. - 2 - 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 - 3 - certified or registered mail (return receipt requested and first-class postage prepaid), addressed as follows: If to Cabletel: Cabletel Communications Corp. 230 Travail Rd. Markham, Ontario, Canada L3S 3JI Attention: Ron Eilath, Executive Vice President and Chief Financial Officer Facsimile: (905) 475-9571 with a copy to: Piper Marbury Rudnick & Wolfe LLP 1251 Avenue of the Americas New York, New York 10020 United States of America Attention: Jonathan Klein, Esq. Facsimile: (212) 884-8502 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: Jean Gay, Vice President Customer Financial Services Facsimile: (828) 322-7670 with a copy to: Fried, Frank, Harris, Shriver & Jacobson One New York Plaza New York, New York 10004 United States of America Attention: Christopher Ewan, Esq. Facsimile: (212) 859-8588 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. - 4 - 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. - 5 - 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: - 6 - 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 35227 RI 679021 $ 10,862.64 $ 10,862.64 05/14/02 RI 679121 SO 123841 103504 35271 RI 679121 $ 10,541.76 $ 10,541.76 05/15/02 RI 679300 SO 122907 103504 35225 RI 679300 $ 25,805.95 $ 25,805.95 05/15/02 RI 679314 SO 125134 103504 35414 RI 679314 $ 3,283.15 $ 3,283.15 05/17/02 RI 679571 SO 122913 103504 35227 RI 679571 $ 5,326.71 $ 5,326.71 05/19/02 RI 680401 SO 123841 103504 35271 RI 680401 $ 3,647.53 $ 3,647.53 05/21/02 RI 680975 SO 123841 103504 35271 RI 680975 $ 978.68 $ 978.68 05/21/02 RI 680995 SO 126546 103504 35475 RI 680995 $ 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 35225 RI 678475 $ 1,970.40 $ 1,970.40 05/25/02 RB 35591 SO 78436 103504 31254 RI 607105 $ 109.07 $ 109.07 05/25/02 RB 35592 SO 70225 103504 30562 RI 636227 $ 151.00 $ 151.00 05/25/02 RB 35593 SO 70236 103504 30564 RI 637605 $ 96.00 $ 96.00 05/25/02 RB 35594 SO 100398 103504 33214 RI 637611 $ 89.56 $ 89.56 05/25/02 RB 35595 SO 97026 103504 32877 RI 637829 $ 333.70 $ 333.70 05/25/02 RB 35596 SO 70231 103504 30563 RI 638235 $ 200.00 $ 200.00 05/25/02 RB 35597 SL 73097 103504 30836 RI 640102 $ 353.92 $ 353.92 05/25/02 RB 35598 SO 89695 103504 32212 RI 640301 $ 234.81 $ 234.81 05/25/02 RB 35599 SL 75265 103504 31014 RI 615107 $ 26,896.32 $ 26,896.32 05/25/02 RB 35600 CD 22562 103504 31140 RM 615701 $ 1,056.00 $ 1,056.00 05/25/02 RB 35601 SO 94723 103504 32664 RI 627735 $ 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 05/25/02 RI 681936 SO 122913 103504 35227 RI 681936 $ 2,032.80 $ 2,032.80 05/26/02 RI 682285 SO 126623 103504 35466 RI 682285 $ 3,675.00 $ 3,675.00 05/26/02 RI 682347 SO 122907 103504 35225 RI 682347 $ 3,800.03 $ 3,800.03 05/27/02 RI 682641 SO 126623 103504 35466 RI 682641 $ 4,218.75 $ 4,218.75 05/27/02 RI 682642 SO 126630 103504 35468 RI 682642 $ 2,450.00 $ 2,450.00 05/27/02 RI 682643 SO 126631 103504 35469 RI 682643 $ 2,940.00 $ 2,940.00 05/29/02 RI 683293 SO 126623 103504 35466 RI 683293 $ 4,900.00 $ 4,900.00 05/30/02 RI 683470 SO 126628 103504 35467 RI 683470 $ 2,597.00 $ 2,597.00 06/01/02 RI 683663 SO 126623 103504 35466 RI 683663 $ 8,575.00 $ 8,575.00 06/01/02 RI 683664 SO 126628 103504 35467 RI 683664 $ 3,234.00 $ 3,234.00 06/01/02 RI 683665 SO 126630 103504 35468 RI 683665 $ 1,764.00 $ 1,764.00 06/01/02 RI 683666 SO 126631 103504 35469 RI 683666 $ 1,764.00 $ 1,764.00 06/02/02 RI 655653 SO 113527 103504 34444 RI 655653 $ 68,620.22 $ 68,620.22 06/02/02 RI 655670 SO 111286 103504 34224 RI 655670 $ 100,607.52 $ 100,607.52 06/02/02 RI 668600 SO 119451 103504 34966 RI 668600 $ 60,869.19 $ 60,869.19 06/02/02 RI 668672 SO 115482 103504 34576 RI 668672 $ 14,748.48 $ 14,748.48 06/02/02 RI 668684 SO 119444 103504 34965 RI 668684 $ 27,704.58 $ 27,704.58 06/02/02 RI 668716 SO 119418 103504 34941 RI 668716 $ 190.50 $ 190.50
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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 34564 RI 668739 $ 1,721.25 $ 1,721.25 06/02/02 RI 668888 SO 115247 103504 34575 RI 668888 $ 4,778.00 $ 4,778.00 06/02/02 RI 669028 SO 119444 103504 34965 RI 669028 $ 6,922.01 $ 6,922.01 06/02/02 RI 669177 SO 115239 103504 34562 RI 669177 $ 3,920.00 $ 3,920.00 06/02/02 RI 669190 SO 119425 103504 34948 RI 669190 $ 15,078.24 $ 15,078.24 06/02/02 RI 669191 SO 119440 103504 34962 RI 669191 $ 2,048.40 $ 2,048.40 06/02/02 RI 669192 SO 119444 103504 34965 RI 669192 $ 8,049.13 $ 8,049.13 06/02/02 RI 669327 SO 115241 103504 34564 RI 669327 $ 495.00 $ 495.00 06/02/02 RI 669412 SO 115566 103504 34565 RI 669412 $ 1,241.84 $ 1,241.84 06/02/02 RI 669428 SO 119425 103504 34948 RI 669428 $ 25,328.72 $ 25,328.72 06/02/02 RI 669515 SO 119440 103504 34962 RI 669515 $ 2,415.36 $ 2,415.36 06/02/02 RI 669516 SO 119444 103504 34965 RI 669516 $ 8,613.36 $ 8,613.36 06/02/02 RI 669846 SO 115239 103504 34562 RI 669846 $ 3,622.00 $ 3,622.00 06/02/02 RI 669847 SO 115241 103504 34564 RI 669847 $ 7,350.00 $ 7,350.00 06/02/02 RI 670557 SO 115241 103504 34564 RI 670557 $ 2,499.00 $ 2,499.00 06/02/02 RI 670558 SO 115247 103504 34575 RI 670558 $ 2,450.00 $ 2,450.00 06/02/02 RI 670594 SO 119425 103504 34948 RI 670594 $ 10,012.80 $ 10,012.80 06/02/02 RI 670629 SO 119418 103504 34941 RI 670629 $ 2,012.80 $ 2,012.80 06/02/02 RI 670827 SO 115598 103504 34565 RI 670827 $ 2,610.00 $ 2,610.00 06/02/02 RI 671232 SO 119425 103504 34948 RI 671232 $ 625.80 $ 625.80 06/02/02 RI 683924 SO 126623 103504 35466 RI 683924 $ 4,900.00 $ 4,900.00 06/02/02 RI 683925 SO 126630 103504 35468 RI 683925 $ 2,450.00 $ 2,450.00 06/02/02 RI 683926 SO 126631 103504 35469 RI 683926 $ 3,675.00 $ 3,675.00 06/03/02 RI 684169 SO 126630 103504 35468 RI 684169 $ 4,900.00 $ 4,900.00 06/03/02 RI 684170 SO 126631 103504 35469 RI 684170 $ 4,900.00 $ 4,900.00 06/03/02 RI 684303 SO 126544 103504 35474 RI 684303 $ 83,366.40 $ 83,366.40 06/04/02 RI 684662 SO 126544 103504 35474 RI 684662 $ 12,094.08 $ 12,094.08 06/04/02 RI 684663 SO 126548 103504 35476 RI 684663 $ 5,891.43 $ 5,891.43 06/04/02 RI 684738 SO 126544 103504 35474 RI 684738 $ 42,046.08 $ 42,046.08 06/05/02 RI 684915 SO 129715 103504 35733 RI 684915 $ 2,740.00 $ 2,740.00 06/05/02 RI 684988 SO 129715 103504 35733 RI 684988 $ 239.25 $ 239.25 06/05/02 RI 685013 SO 126544 103504 35474 RI 685013 $ 11,741.67 $ 11,741.67 06/07/02 RI 685186 SO 129715 103504 35733 RI 685186 $ 504.00 $ 504.00 06/08/02 RM 685584 CO 29979 103504 35414 RM 685584 $ 365.63 $ 365.63 06/09/02 RI 672605 SO 115247 103504 34575 RI 672605 $ 4,704.00 $ 4,704.00 06/09/02 RI 674276 SO 122376 103504 35051 RI 674276 $ 74,624.87 $ 74,624.87 06/09/02 RI 674667 SO 122376 103504 35051 RI 674667 $ 74,599.80 $ 74,599.80 06/09/02 RI 674712 SO 122376 103504 35051 RI 674712 $ 54,559.52 $ 54,559.52 06/09/02 RI 675117 SO 122376 103504 35051 RI 675117 $ 9,648.44 $ 9,648.44 06/09/02 RI 676570 SO 123841 103504 35271 RI 676570 $ 5,690.30 $ 5,690.30 06/09/02 RB 36020 SO 99124 103504 33067 RI 641831 $ 119.89 $ 119.89 06/12/02 RI 686527 SO 126546 103504 35475 RI 686527 $ 1,202.40 $ 1,202.40 06/15/02 RI 686858 SO 129886 103504 35781 RI 686858 $ 68,347.20 $ 68,347.20 06/16/02 RI 687175 SO 129589 103504 35732 RI 687175 $ 15,706.04 $ 15,706.04 06/18/02 RI 687662 SO 129713 103504 35726 RI 687662 $ 8,428.00 $ 8,428.00 06/18/02 RI 687663 SO 129714 103504 35729 RI 687663 $ 2,776.43 $ 2,776.43 06/18/02 RI 687664 SO 129715 103504 35733 RI 687664 $ 250.00 $ 250.00 06/19/02 RI 687930 SO 129712 103504 35725 RI 687930 $ 10,780.00 $ 10,780.00
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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 35733 RI 687931 $ 980.00 $ 980.00 06/21/02 RI 688210 SO 129713 103504 35726 RI 688210 $ 3,038.00 $ 3,038.00 06/23/02 RI 688852 SO 129589 103504 35732 RI 688852 $ 67,040.22 $ 67,040.22 06/23/02 RI 688853 SO 129674 103504 35718 RI 688853 $ 7,802.71 $ 7,802.71 06/23/02 RI 688854 SO 129682 103504 35723 RI 688854 $ 20,628.01 $ 20,628.01 06/23/02 RI 688855 SO 129690 103504 35734 RI 688855 $ 68,530.51 $ 68,530.51 06/23/02 RI 688856 SO 129886 103504 35781 RI 688856 $ 48,113.80 $ 48,113.80 06/24/02 RI 689284 SO 129589 103504 35732 RI 689284 $ 21,095.98 $ 21,095.98 06/24/02 RI 689285 SO 129674 103504 35718 RI 689285 $ 7,185.60 $ 7,185.60 06/24/02 RI 689286 SO 129682 103504 35723 RI 689286 $ 9,389.44 $ 9,389.44 06/24/02 RI 689287 SO 129690 103504 35734 RI 689287 $ 3,621.60 $ 3,621.60 ------------- ------------- $1,335,733.45 $1,335,733.45 ============= =============
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