DALLAS-MetroPCS Inc. said it has received a notice from the trustee under the indenture governing its $150 million of 10.75-percent senior notes due 2011 that it has failed to comply with a covenant requiring the carrier to file its second-quarter 10-Q form with the Securities and Exchange Commission on a timely basis. As a result, the trustee of the holders of 25 percent of the principal amount of the notes has the right to accelerate the notes at 100 percent of par value if MetroPCS fails to comply with the covenant by Nov. 8.
MetroPCS noted that if an acceleration occurs, it might not be able to satisfy its note payment obligations and would likely seek alternative financing sources to satisfy those obligations.
The regional carrier previously reported that its audit committee is conducting an independent investigation into an understatement of revenues and net income for its first fiscal quarter, which resulted in the delay of its second-quarter filing. MetroPCS also reported in late July that the ongoing investigation would delay its pending initial public offering.
