Rambus Denies Bond Default
Unlike Vitesse, which has only $30 million in cash on its balance sheet, Rambus had roughly $416 million in cash, cash equivalents and marketable securities at the end of June. Rambus says it has adequate financial resources to pay any unpaid principal and interest on the notes in the event of a default.
Additionally, the Los Altos, Calif., company said its recent failure to file its quarterly earnings report with the trustee did not violate the terms of the bonds. According to Rambus, the company is required to give the trustee copies of reports within 15 days after they have been filed with the SEC.
That, contends Rambus, implies that the trustee's right to receive financial reports is contingent upon the SEC first receiving the filings.
"Since the company's Form 10-Q for the quarter ended June 30, 2006 has not been filed with the SEC, the company is under no obligation to file it with the trustee," read a statement by Rambus.Rambus also said it would have until Nov. 7 to rectify the situation by filing its report. U.S. Bank contends that Rambus has until Oct. 17 to stave off an official event of default. In the event of default, Rambus said that all $160 million in principal would be due immediately, as well as any additional interest, which accrues at a rate of 2% per year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV