玩股票学商业－为什么VRX未及时报告会引起default

VRX股票行为福含很多有趣的商业东西。从这里可以自然推论default并不立刻引起破产除非债主有进一步的行动。现学现买回了网友一个问题。

Valeant Bonds: How Could a Late Filing Lead to Default?

By Amey Stone

http://blogs.barrons.com/incomeinvesting/2016/03/18/valeant-bonds-how-could-a-late-filing-lead-to-default/?mod=yahoobarrons&ru=yahoo

Valeant Pharmaceuticals International (VRX) is now officially in breach of a covenant in its bond documents requiring it to file financial documents on time.

Does that mean there is an “event of  default”? Not yet, explains Covenant Review, an independent credit research firm, in a series of answers to some of the most common questions investors are asking.

In simple terms, it has 60 days grace period to file the late statements before it is considered an event of default. At that point, if bondholders controlling 25% of the principal decide to “accelerate” payment of the bonds in that series, it has to pay up in full.

Here are the far more detailed questions and answers from the FAQ (which covers several more scenarios):

Question: Does a breach of the Reports covenant of each series of Valeant Bonds mean that there is an Event of Default under those Valeant Bonds?
No. A breach (or default) under the Reports covenant of any series of Valeant Bonds does not become an Event of Default until (1) the required notice has been given by at least 25% in aggregate principal amount of the bonds of such series and (2) the 60-day grace period has elapsed without the Company curing the breach under the applicable Valeant Bonds.

Question: If 25% in aggregate principal amount of one series of Valeant Bonds sends notice to the Company of a breach under that series of Valeant Bonds, would that suffice as the required notice under the other series of Valeant Bonds?
No. The Company or Opco, as the case may be, must generally receive notice from at least 25% in aggregate principal amount of the applicable series of Valeant Bonds in order for the required notice to be given under that series of bonds

Question: If 25% in aggregate principal amount of one series of Valeant Bonds sends notice to the Company of a breach of the Reports covenant under that series of Valeant Bonds, and that breach becomes an Event of Default after the 60-day grace period expires, does that mean that the applicable series of Valeant Bonds is due and payable?
No. If a breach of the Reports covenant under a series of Valeant Bonds ripens into an Event of Default after the 60-day grace period elapses, 25% in aggregate principal amount of that series is generally required to accelerate that series.

Correction: This post was corrected to indicate that the bonds may be payable in full if holders of 25% of the principal decide to accelerate that series.