RE: Sign in sheet for the 1/31 Hearing
This is a very interesting audience. Thank you.
First, I must clarify my earlier statement regarding Silver Lake's current interest in PWAV to note they received warrant interests as "payment in kind."
But most interesting, in reviewing PWAV's credit agreement with Gore Group, it contains these provisions which would become effective should PWAV fail to maintain any of numerous covenents detailed in the credit agreement:
" Pursuant to the terms of the Security Agreement, the Company (i) granted to the Agent, on behalf of the Lenders, a first priority perfected security interest in substantially all of its assets, including all of its intellectual property rights; and (ii) pledged and delivered possession of all of the equity securities held by the Company of certain of its domestic subsidiaries and 66% of the equity securities of certain of its foreign subsidiaries held by the Company.
" The Security Agreement further provides that, amongst other things, upon the occurrence and during the continuance of an Event of Default (as defined therein), the Agent will become entitled to (i) take possession of and to sell the assets of the Company in order to recover the amounts due to the Lenders under the Credit Agreement and any other amounts, fees or payments that may be due and payable to the Lenders under the Credit Agreement or any related documents; and (ii) transfer the pledged securities into its name, to vote those securities and, subject to applicable securities laws, to sell those securities in order to recover amounts owed to it by the Company under the Credit Agreement.
" Furthermore, the Company and the Agent entered into a customary Copyright Security Agreement, Patent Security Agreement and Trademark Security Agreement, in substantially the forms attached to the Security Agreement. "
Current report filing (8-K)
Date : 09/12/2012 @ 9:15AM
Source : Edgar (US Regulatory)
Sounds as if Gore Group got "first priority" legal rights to the company's assets for $50 million, doesn't it?
