Regent In Technical Default, Says B Of A
April 7, 2009 at 5:25 AM (PT)
After auditors included a paragraph about the possibility of default by REGENT COMMUNICATIONS in a report on the company's 2008 financials, the BANK OF AMERICA sent a letter notifying REGENT that the auditors' report would be considered a "Specified Default" that triggered a 30-day period to remedy the default or face acceleration of the entire outstanding debt plus interest.
The APRIL 1st letter notes that REGENT was required to deliver to it by that date audited financial statements with independent auditors' statement "without Impermissible Qualifications."
REGENT is in talks with the lenders to amend some of the financial ratios and covenants under their Credit Agreement in order to head off default and acceleration.