NEW YORK Lucent Technologies Inc.s creditors agreed to ease restrictions on $4 billion of loans, allowing the No. 1 maker of telephone equipment to proceed with a debt restructuring plan, bankers familiar with the accord said.
The amendment to Lucents credit lines needed the approval of holders of more than 51% of the debt. Among the companys creditors are, J.P. Morgan Chase & Co. and Citibank NA, which currently hold less than 25% in principal amount, Lucent said in the prospectus for its convertible share offering.
The restructuring plan will include taking a charge of as much as $9 billion and allow Lucent to pay an 8% dividend on convertible preferred shares issued Aug. 1.
The agreement also means that Standard & Poors will take Lucents debt off review for possible further downgrade, the ratings company said earlier. Lucents shares rose as much as 16 cents, or 2.6%, to $6.38 after falling as much as 20 cents, or 3.2%, to $6.02.