In addition, Fred's lenders under the Revolving Credit Agreement indicated to Fred's their belief that certain other events of default
have occurred under the Revolving Credit Agreement in connection with Fred's previously-announced store closures, the inventory sales at certain stores and the timing of delivery, and content, of a borrowing base certificate due under the Revolving Credit Agreement.
24, 2021, the stated expiration date, unless such date is extended; upon conversion of the subseries to a mode other than daily, two-day or weekly rate; or upon the occurrence of certain events of default
which result in a mandatory tender or other events of default
related to the credit of the bond obligor which result in an automatic and immediate termination.
Following this payment, all defaults and events of default
under the relevant indenture and other debt instruments of the the company relating to the failure to make such interest payment have been cured and are no longer outstanding.
PHI said it intends to execute a supplemental indenture to the indenture governing the notes to eliminate most of the restrictive covenants and certain events of default
contained in the indenture.
The 2012 Bondholders also approved waivers of any event of default under the terms of the 2012 Bonds which might occur by reason of the ineffectiveness of the equivalent deferrals requested from the 2013 Bonds or the Bank Creditors and also waived any events of default
under the Intercreditor Agreement, in both cases up to and including 10 December 2012, whereas the 2013 Bondholders did not approve this agenda item.
The company has used an option within the terms of the facility agreement which allows it ti extend the term of the loan, provided that no prior events of default
have occurred and subject to the written consent of all investors.
In addition the amendment permanently waives past events of default
under the agreements governing the company's secured notes.
It is also seeking consent from bondholders to amend restrictive covenants, and eliminate or amend certain events of default
under the existing notes.
Today, many--if not most--bank loan documents contain at least two events of default
that could be very dangerous for any borrower.
Events of default
may include, but not be limited to, events such as the following: (1) a material-adverse event occurs in the borrower's financial condition; (2) the bank believes the borrower may not be able to repay the loan; or (3) the bank believes, in good faith, that it is insecure.
It will be secured by eight of the company's vessels, along with a guarantee of its obligations as well as contains certain conditions, covenants and events of default