Tuesday, June 26, 2007

US CREDIT-Tyco bond suit may have wide-ranging impact

(Reuters) - Tyco is being sued by the trustee of its bonds, The Bank of
New York and a group of bondholders who argue that the company
is breaking terms and conditions of the debt by not offering to
buy back the debt at what they argue is its full value.




Investment grade corporate bonds often have covenants that
can require companies to buy back the debt at a price that
includes future interest payments in certain events such as
restructurings or mergers or acquisitions, which can radically
alter a company's credit profile.


Read more at Reuters.com Bonds News

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