SEC and bondholder deadlines debated

Is the deadline to supply financial statements to the SEC and the deadline to supply them to bondholders one and the same? The issue is on the front burner these days because so many companies have missed their SEC deadlines, often due to Sarbox-related issues. A recent state Supreme Court decision in New York ruled that BearingPoint is in default to bondholders because it failed to supply timely financial statements. BearingPoint has delayed filing its annual report due to accounting problems. It argued that it isn't required to supply financial reports to the bondholders' trustee until 15 days after filing SEC reports. This can be seen as good news for hedge funds and other bondholders, but in the end, it will likely result in more litigation. The best solution is a negotiated one between bondholders' trustees and the company. There are reports, however, that some hedge funds have asked for cash to grant an extension.

For more on the ruling:
- Here's an AP article

Also: One hedge fund wants immediate bond redemption. Article