Poison put


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Related to Poison put: poison pill, Macaroni Defense, Poison Put Bond

Poison put

A covenant allowing the bondholder to demand repayment in the event of a hostile takeover.

Poison-Put Bond

A bond that allows bondholders to redeem before maturity at a high price should certain, named events take place. These events commonly include restructuring, a leveraged buyout, an attempted hostile takeover, or paying dividends in excess of a certain amount or percentage. Poison-put bonds can act as an anti-takeover measure; they help management discourage takeovers by raising their expense. On the other hand, when the company is going through a difficult time, poison-put bonds can limit management's restructuring options for the same reason.
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Improving corporate governance, including redeeming the rights issued under the poison pill plan as well as cancelling the plan and removing the poison put provision from the credit agreement.
The letter went on to say: "While directors collect fat fees and entrench themselves with onerous poison pills and poison put debt covenants, shareholders have watched their investment lose more than 60 percent of its value in just the last year.
Edelson said that some shareholders are now being told by the Company or its associates or representatives that if the Gold Committee's slate is elected, that the poison put provision might be invoked.
If the poison put is tripped, or the company does pay additional fees to renegotiate the change-in-control term, the root cause would always be the board's inattention or indifference to unintended consequences, not the actions of any shareholder who tripped it.
You not only have the poison pill but your 2007 indenture has a poison put and your 2007 credit agreement has an even worse poison put.