Concordia says 'unaware' of material change to account for market activity
Concordia International announced that at the request of the Investment Industry Regulatory Organization of Canada, the company is confirming that it is unaware at this time of any material change in its operations that would account for the recent increase in market activity. As previously announced, the company commenced proceedings under the Canada Business Corporations Act in an effort to realign its capital structure. "The company continues to advance ongoing discussions with its debtholders in this effort, and is focused on realigning its capital structure on a consensual basis. In connection with the company's efforts to advance a potential recapitalization transaction, the company has determined to defer the payment of the approximately $37.5M of interest due today on its 9.5% senior unsecured notes. Such deferral of the interest payment does not result in an Event of Default until the expiry of the 30-day grace period, and any default or Event of Default in respect of the non-payment of the foregoing interest amount is subject to the stay of proceedings granted in the company's CBCA proceedings. It is expected that the foregoing interest payment will be addressed as part of any recapitalization transaction that may be completed by the company," Concordia added.