Bingham, led by partners Neil Devaney and James Terry, is advising noteholders of Magyar Telecom BV, a Hungarian telecommunications holding company. Magyar filed a Chapter 15 petition on Oct. 29 in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan seeking recognition of the company’s U.K. restructuring.

In a motion made on the same day, foreign representative Nikolaus Bethlen requested recognition of a scheme of arrangement pending before the High Court of Justice of England and Wales as a foreign main proceeding. The debtor opted to file for bankruptcy in the U.S. as its €350 million ($481 million) in secured notes are governed by New York law. The notes mature on Dec. 16, 2016, and bear 9.5 percent interest.

The debtor failed to make a €15.63 million interest payment on the notes on June 15. Noteholders holding more than 70 percent of the debt have agreed to a restructuring deal. Under the deal, which Magyar plans to implement through the scheme of arrangement, consenting noteholders would receive a fee of 25 basis points. €155 million in notes would be reinstated with 7 percent cash interest and 2 percent pay-in-kind interest, according to a company statement. An additional €174 million in notes would be converted to 49 percent of a reorganized Magyar. The remaining €21 million in notes, held by Magyar, would be written off. In addition, restructuring sponsor Mid Europa Partners Ltd. would provide a €25 million infusion for 51 percent of Magyar’s new equity. Magyar would use €15 million in equity to repurchase a portion of the new notes under a reverse auction process. Mid Europa would invest the remaining €10 million in notes that would be pari passu with the reinstated notes.