BlackBerry could pay $250 mln break fee in event of better offer -filing

Thu Nov 7, 2013 5:18pm EST
 
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TORONTO Nov 7 (Reuters) - BlackBerry Ltd will pay up to $250 million to a group of debtors including Prem Watsa's Fairfax Financial Holdings if another deal succeeds, according to a regulatory filing on Thursday detailing the debt deal.

The filing also showed that incoming interim chief executive and executive chairman John Chen will receive a base salary of $1 million. Chen will also receive 13 million restricted stock units, with half of them vesting only after five years with the company.

BlackBerry on Monday abandoned plans to sell itself and instead opted to raise $1 billion by selling convertible notes to a group of investors. The company had said Fairfax, its largest shareholder, was buying $250 million of the offering.

In the filing, BlackBerry said Canso Investment Counsel Ltd is buying $300 million, while Mackenzie Financial, Markel Corp , Qatar Holding, and Brookfield Asset Management , are buying the remainder.