Novell gets default notice on 0.50% convertibles, delisting warning

By Caroline Salls

Pittsburgh, Sept. 20 - Novell, Inc. received a notice of default from Wells Fargo Bank, NA, the trustee for the company's $600 million 0.50% convertible senior debentures due 2024 because of the delay in filing its 10-Q for the period ended July 31, according to a company news release.

The company has 60 days from the date of notice to cure the default.

Novell said in the release that it does not believe that it has failed to perform its obligations under the debentures indenture, and therefore it believes that the notice of default is invalid and without merit.

Novell said the indenture requires that it provide the trustee copies of all Securities and Exchange Commission filings within 15 days after they are actually made, and the company said it will comply with this requirement by providing the trustee with the 10-Q after filing it with the SEC.

Novell also received and plans to appeal a staff determination notice from the Nasdaq Stock Market stating that the company's common stock is subject to delisting as a result of the delayed filing of Novell's 10-Q quarterly report for the period ended July 31.

Novell said the appeal and request for a hearing before a Nasdaq listing qualifications panel will automatically stay delisting of the company's common stock pending the panel's review and determination.

According to the release, the late filing resulted from Novell's previously announced voluntary review by its audit committee of the company's historical stock-based compensation practices.

The company said it intends to file its 10-Q as soon as possible after the audit committee's review is concluded.

Novell is a Waltham, Mass.-based computer networking firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.