Part I of the article appearing in the June issue of The Metropolitan Corporate Counsel described reporting covenants at the center of recent cases involving default claims by bondholders arising out of the failure of companies to timely file their SEC reports.
I. The Recent Cases
As soon as Vitesse Seminconductor Corp. said it was under investigation for securities law violations that may delay routine regulatory filings, the Camarillo, California, maker of computer chips also learned it was about to be held up for ransom in the bond market.
(Bloomberg.com, Sept. 12, 2006) 1