News Article

DERBY not making interest payments

Home

WASHINGTON, USA (May 18) – “The Derby Cycle Corporation will not make its scheduled interest payments on its $100 million principal amount of 10.0% senior notes and its DEM110 million principal amount of 9.38% senior notes that are due today, May 15, 2001.” Derby Cycle Corporation filed this statement at the US Securities and Exchange […]

WASHINGTON, USA (May 18) – “The Derby Cycle Corporation will not make its scheduled interest payments on its $100 million principal amount of 10.0% senior notes and its DEM110 million principal amount of 9.38% senior notes that are due today, May 15, 2001.” Derby Cycle Corporation filed this statement at the US Securities and Exchange Commission last Tuesday. Derby’s statement also mentions that it is in default of the convenants contained in a revolving loan of DEM 209.4 million (US$ 93.9mn). Derby Cycle Corporation has a 30-day grace period to make the payments. However the Derby statement signed by Vice President and Corporate Controller Simon J. Goddard also indicates that there can be no assurance that the interest payments will be made by the end of the grace period. At this moment Derby is working with an informal committee of holders of more than 50% of the principal amount of its loans for the purposes of negotiating a consensual restructuring of its outstanding securities. According to the statement of Simon Goddard Derby has advised this committee that any restructuring proposal will provide for payment in full of all obligations to Derby’s trade creditors and will not have any impact on the day-to-day operations with regard to employees, customers, suppliers, distributors and general business. (JO)

Comment on this article