Feeds

Filing delay lands Novell with $600m debt default notice

And NASDAQ delisting threat

Internet Security Threat Report 2014

Novell's tardiness in doing its paper work for the US Securities and Exchange Commission (SEC) has triggered nastygrams from NASDAQ and Wells Fargo, trustee of $600m in Novell debt.

Novell is late in filing a Form 10-Q with the SEC for the period ended 31 July because it is still auditing the timing of stock option grants. So NASDAQ has fired off a standard delisting notice. The software firm can fend this off easily enough – an appeal will give it breathing space to get its paperwork in order.

Because of the 10-Q delay, Wells Fargo claims that Novell has failed to meet its debenture obligatons. According to Novell, the bank's letter "states that this asserted default will not become an 'event of default' under the indenture if the company cures the default within 60 days after the date of the notice".

The Wells Fargo notice also looks pretty standard – but since the bank is trustee for $600m in debentures convertible in 2024, the potential consequences for Novell are problematic.

Novell says that Wells Fargo's interpretation of the indenture terms is wrong. It merely has to provide the trustee with the form within 15 days after filing with the SEC. But if Wells Fargo is right and if Novell doesn't get its act together in time, it could have to up pay 25 per cent of the debt on accelerated terms.

Novell says it will file the 10-Q "as soon as [is] practicable". ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.