It will also hold talks with debt providers "to negotiate amendments to the operation of covenants and the waiver of any event of default that my result from the 40mm contract delay".
Panmure Gordon analyst Sanjay Jha called the announcement a "horrible profit warning" and said: The main issue for us is the balance sheet as the company has warned that discussions will be held with debt providers to negotiate amendments to the operation of covenants and the waiver of any event of default that may result from the 40mm contract delay.
At any time after an Event of Default, as this term is defined in an Eligible Note, any Noteholder hereunder, or the Fiscal Agent on behalf of a Noteholder hereunder, may file with USAID an Application for Compensation in the form provided in Appendix A to this part.
In the event that USAID receives any other notice of an Event of Default, USAID may pay any compensation that is due to any Noteholder pursuant to a Guarantee, whether or not such Noteholder has filed with USAID an Application for Compensation in respect of such amount.
when an Event of Default or "Material Even of Default" is continuing.
Failure to pay "shall constitute an event of default under the operating agreement," the company stated.
Following an event of default known by or disclosed to the IRS, the IRS will deliver to the participating FFI a notice of default specifying the event of default.
The security declared "an event of default" on Nov. 19, 2007, and investors soon lost hundreds of millions of dollars, the S.E.C. said, while Citigroup gained.
"As a result, we declared an event of default, which entitled us as prime broker to require liquidation of the account".
A participating FFI is required to cure an event of default with respect to the FFI agreement as defined in paragraph (g) of this section.
Again, a well-advised sponsor/borrower will want the prohibitions above to continue even if there is an event of default.
