Vitesse denies debenture default claim

August 22, 2006 – Vitesse Semiconductor Corp. says it has received a “purported” acceleration notice from the trustee of a $96.7 million aggregate principal amount of 1.5% Convertible Subordinated Debentures due 2024, which cites that the company is in default due to delays in filing SEC filings on time. The company counters that it has fully complied with its obligations, and that there is no such requirement attached to that indenture, and therefore any attempt to accelerate the payment of the debentures is invalid.

“Vitesse made a good faith offer to resolve this dispute. Unfortunately, the demands by some of the holders of the Debentures have far exceeded anything that we would consider reasonable under the circumstances,” stated Chris Gardner, Vitesse CEO.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.