Terayon Receives Default Notice1/19/2006 8:22 AM Eastern
Terayon Communication Systems Inc. said it had received written notice of default from holders of more than 25% of its senior notes as of Jan. 12, stemming from the cable-equipment provider’s failure to file its 10-Q quarterly financial statement with the Securities and Exchange Commission.
The vendor added that if the default is not cured within 60 days of the notice, an event of default will occur and the bondholders can demand immediate payment in full.
Terayon also said the notes outstanding have an aggregate principal amount of $65 million. Terayon ended 2005 with $101 million of cash and cash equivalents.