Common shareholders of KeyTech Ltd. - the parent company of BTC, Logic Communications and major CableVision stakeholder - on Thursday approved a proposal which the company hopes will reduce debt and improve the capital structure.

Shareholders were asked to vote on the proposal to create 8 percent Cumulative Redeemable Convertible Preferred Shares of KeyTech Limited which will be offered in exchange for 7 percent Redeemable Notes of Bermuda Telephone Company Limited. The offer was conditional on the approval of the KeyTech Common Shareholders.

The result was approved with 75.5 percent of shareholders participating and 51 percent of total shareholders voting in favour of the proposal.

Shareholders also approved the subdivision of KeyTech Common Shares of a par value of $1 into four Common Shares of a par value of $0.25 immediately.

All trading in KeyTech common shares will now be on the basis of the post sub division common shares of a par value of $0.25. Common shareholders of KeyTech who have not lodged their share certificates in the BSD system will be sent a new certificate representing four Common Shares of par value $0.25 for each Common Share of par value $1 presently held.

For those Common Shareholders who have lodged their share certificates in the BSD system, their shareholding will be automatically adjusted to reflect the subdivision of the Common Shares.

Common Shareholders wishing to lodge share certificates in the BSD prior to receipt of their new share certificates may lodge the existing $1 par value share certificate. The BSD will reflect the holding lodged in the BSD on the basis of the post split number of shares represented by the certificates so lodged.