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Par Pharmaceutical receives acceleration notice on $200 million 2.875% convertibles
By Caroline Salls
Pittsburgh, Oct. 6 - Par Pharmaceutical Cos., Inc. received a notice of acceleration from the trustee for its 2.875% senior subordinated convertible notes due 2010 for failure to include financial statements in its second-quarter 10-Q report, according to an 8-K filing with the Securities and Exchange Commission.
The trustee has declared the roughly $200 million principal amount of the outstanding notes, plus interest, to be immediately due and payable.
The company said in the filing that it believes that it has complied with its obligations under the notes indenture and that the notices of default and acceleration are invalid and without merit.
Under the indenture, Par contended that it is required only to provide the trustee with copies of its annual, quarterly and other reports within 15 days of filing the reports with the SEC.
In addition, Par said the indenture specifically addresses providing portions of reports to the trustee.
On Aug. 24, within 15 days of its filing with the SEC, the company said it delivered to the trustee a copy of its 10-Q for the second quarter, but the 10-Q did not include the company's financial statements for the second quarter and related management discussion and analysis because of its ongoing work to restate some of its past financial statements.
As a result, in accordance with SEC rules, the company said it filed a form 12b-25 notification of late filing disclosing the omissions and provided copies of that form to the trustee.
Woodcliff Lake, N.J.-based Par develops generic drugs and branded pharmaceuticals for specialty markets.
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