DALLAS-MetroPCS Inc. said it received and accepted consents from a majority of holders of its $150 million aggregate principal amount of outstanding 10.75-percent senior notes due 2011 to a limited waiver of up to 180 days of any default or event of default arising from the carrier’s failure to file required financial documents with the Securities Exchange Commission and note holders.
MetroPCS reported in early August that it had received notice of its failure to comply with a covenant requiring the carrier to file a 10-Q form for the second quarter of this year with the SEC. The failure provided noteholders with the right to accelerate the notes at 100 percent of their par value unless MetroPCS complied with the covenant by Nov. 8. MetroPCS noted that if the acceleration right were initiated it would have been forced to seek alternative forms of financing to meet its financial obligations.
MetroPCS is currently investigating problems with previously reported financial results for 2002 and 2003 as well as the first quarter of 2004, which the carrier said would delay the issuance of financial statements for the second and third quarters of this year. The investigation also forced the carrier to scrap plans for an initial public offering that was expected to take place earlier this year.
