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.
