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OCZ Technology Group AŞ Message Board

  • aicdeftone aicdeftone May 19, 2013 1:40 PM Flag

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    Taking opinions on a 5/31 default. I am not in yet but seriously considering it at these levels. I, for one, cannot see how a company could put so much time, effort, and resources into producing some of the best products in it's market and give it all up over a loan detail due the 31st. Anything is possible I guess but this isn't probable to me. Opinions welcomed. Were does the 10 million come from?

    Sentiment: Hold

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    • The loan rate goes up but doesn't necessarily triggers an immediate repayment.

      "Upon the occurrence and during the continuation of an event of default under the Loan Agreement, the interest rate applicable to all obligations thereunder (including the term loan and the revolving loans), shall be increased by 2% per annum." and

      "The Loan Agreement provides for customary events of default. If an event of default occurs and is continuing, the Lender may terminate and suspend its obligation to make loans under the Loan Agreement, accelerate amounts due under the Loan Agreement, exercise remedies against the collateral and exercise other rights and remedies. In the case of certain events of default related to insolvency, the commitment of the Lender will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable."