Reliance Secures 45.7 Percent of Flag Votes Ahead of Investor Meet

Reliance has secured beneficial votes constituting 45.7 percent of Flag Telecom's shareholding prior to a Flag shareholders' meet on December 22, following an agreement with a new set of shareholders, the Triage group. The Triage shareholders include Leonid Frenkel, Triage Offshore Fund and Triage Capital Management shareholders.

Prior to the agreement with the Triage group, Reliance had only 37.1 percent of supportive votes, which it got from a deal worth $1 million with Harbert Distressed Investment Fund. As per the agreement signed on December 11, 2003, Reliance will offer $171,472 to Triage shareholders in cash on consummation of the deal, in exchange for their favorable vote. The agreement with Triage helps Reliance to secure an additional 8.6 percent votes in its favor.