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Tower signs MOU for debt restructuring as Jazz Technologies takeover looms
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Jazz
Technologies, Inc. signed a merger agreement back in May 2008 that
agreed the acquisition of Jazz’s shares by Tower Semiconductor Ltd.
Tower has subsequently announced that it has signed a Memorandum of
Understanding (MOU) with its lender banks and Israel Corporation, one
of Tower’s major shareholders, for restructuring of the company’s debt.
The MOU will see a reduction of $250 million of Tower’s debt, a $250 million increase in shareholders’ equity and a commitment of additional investment by Israel Corporation. It also guarantees a deferral of payments such as interest and principal payments by the company. The merger is expected to be finalized on Jazz Technologies’ side at a special stockholders’ meeting on September 17th, 2008.