MVP offer to Swiss bondholders

Toronto-based MVP Capital (TSE) is preparing to make an exchange offer to European holders of 13.3 million Swiss Francs ($10.7 million) worth of secured convertible bonds.

Assuming MVP can raise the necessary finanicing, the company will offer to pay 18% of the bond’s par value in cash, plus one convrtible preferre share for each 5,000 franc par value bond.

MVP, whose subsidiary Valdez Gold owns 51% of the Valdez Creek operation in Alaska, recently reported a first-quarter loss of $5.1 million after taking a $3 million writedown on its mining assets. Infascal 1990, MVP lost $14.4 million.