Rocky,
let me have your thoughts when you have a minute..
Here is something interesting to think about.
You know the law suits that ACT has going currently with some bond holders? I do not think they/Bondholder/Plaintiffs are covered in this and it could trigger
the followingIMO? Do you read it like this?
(f) No Defaults. Other than the Existing Defaults, no Event of Default has occurred and is continuing as of the date hereof. ACT is currently stating those that Bondholders that are suing them in court have NO claim and or merit so they are not found in this as Senior note holders in this agreement.
WHICH If so found responsible in Court with those two case would it not the Company be in violation
Section 4. The Standstill Period. In reliance upon the representations, warranties and covenants of the Company contained in this Agreement, and subject to Section 6, each Lender agrees that it will forbear from exercising its rights and remedies.
Which the IMO would allow (ii) the date this Agreement is otherwise terminated or expires, it being understood that the Lenders holding 67% of the then outstanding principal amount of the Debentures shall have the right to terminate this Agreement on 3 Business Days’ prior notice to the Company. Notwithstanding anything in this Agreement or the Transaction Documents to the contrary, a Lender (the “Injured Lender”) shall have the right to take action against the Company pursuant to this Agreement or the Transaction Documents without the consent of any other Lender in the event that the Company defaults on a material obligation to such Injured Lender and such treatment of the Injured Lender is disproportionate to the treatment afforded by the Company to any other Lender; provided that such action shall only seek a remedy to the extent required to afford such Injured Lender equal treatment in proportion to such other Lenders and further, prior to taking such action, written notice shall be provided to all other Lenders.
And thus can force the Company to come up with 50million dollars in 3 days or a take over can happen? (a) The Company acknowledges and agrees that as of the date hereof, the aggregate principal amount of the Indebtedness due under the Debentures is not less than $50,613,127 (inclusive of outstanding principal amount, original issue discount amounts and other amounts due and outstanding). The Company represents and agrees that it has no offset, defense, counterclaim, dispute or disagreement of any kind or nature whatsoever with respect to the liability or amount of such foregoing Indebtedness.
Does this smell like a planned hostile take over to you? Why would the Bondholders agree for the Noose around ACT's neck be removed at the end of 2010?
AI
