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Goodman Networks does not make interest payment on 12 1/8% notes
By Angela McDaniels
Tacoma, Wash., July 1 – Goodman Networks Inc. elected not to pay the $20 million interest payment that was due July 1 on its 12 1/8% senior secured notes due 2020, according to an 8-K filing with the Securities and Exchange Commission.
The company has a 30-day grace period for interest payments on the notes before an event of default may be deemed to have occurred.
If the interest payment is not made during the grace period, then either the note trustee or the holders of at least 25% principal amount of the outstanding notes may declare the notes due and payable.
The current principal amount outstanding of the notes is about $325 million.
Background
The company and some unaffiliated holders of secured claims against the company are engaged in discussions about the terms of and conditions to changes in the company’s capital structure and a potential restructuring, financing, refinancing, sale or other similar transaction involving the company, according to the SEC filing.
The company said it elected not to make the interest payment in light of the ongoing discussions and the pending closing of an asset sale. The company is selling some assets related to its current wireless network deployment and wireline business to Dycom Industries, Inc.
Frisco, Texas-based Goodman provides network infrastructure and professional services to the telecommunications industry and installation and maintenance services for satellite communications.
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