Dialogic violates loan covenant; lenders agree to defer acceleration

By Caroline Salls

Pittsburgh, Aug. 15 - Dialogic Inc. was not in compliance with the minimum liquidity covenant under its term loan agreement as of June 30, according to a 10-Q filed with the Securities and Exchange Commission.

As a result, the company said the term loan lenders have the right to accelerate the maturity date of the long-term debt. However, the lenders have agreed not to accelerate the debt before Jan. 15, 2012.

As of June 30, there was $89.9 million outstanding under the term loan, as well as a total of $6.4 million in accrued interest payable.

San Jose, Calif.-based Dialogic is a provider of voice infrastructure solutions for established and emerging wireline and wireless service providers.

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