NXP Semiconductor's bondholders are largely ignoring the company's offer to swap its debts for new notes, forcing the chipmaker to extend the early tender deadline to March 23.

Approximately 9 percent of the creditors holding the five bonds the company plans to exchange for new secured debts had accepted the offer as at the expiration of the original early tender date of Monday, March 16, according to NXP.

Bondholders who commit to the swap by the new early tender deadline are expected to receive more favorable conditions from the company. They will receive between 17 cents and 32 cents for each dollar-denominated debts.

In a statement, NXP said creditors holding dollar-denominated debts totaling $3.8 billion had tendered $367 million, representing 9.6 percent of the amount. Meanwhile, bondholders holding euro-denominated debts totaling 1.5 billion euro offered to swap 115 million euro, or approximately 7.5 percent of the amount.

NXP offered to swap portions of its outstanding debts for new secured loans as part of efforts to reduce interest expense payments and to conserve cash. The offer to swap the debts will formally close on March 30.

Some NXP creditors have balked at the offer with some senior secured debt holders reportedly considering a legal challenge to the move, according to published reports.