Medarex receives default notice on 2.25% convertibles for failure to file 10-Q

By Caroline Salls

Pittsburgh, Aug. 31 - Medarex, Inc. received a notice of default from Citadel Equity Fund Ltd. for its $150 million of 2.25% convertible senior notes due May 15, 2011 for failure to file its 10-Q for the quarter ended June 30, according to a company news release.

According to the release, Citadel holds more than 25% of the principal amount of outstanding notes.

If Medarex does not cure the default by filing its 10-Q by Oct. 24, an event of default will exist under the notes indenture.

As of June 30, Medarex said it held $424.4 million in cash, cash equivalents, marketable securities and segregated cash, and, after any required repayment of the notes, its existing resources will be sufficient to fund its working capital requirements for both the short and long term.

The company's board of directors has appointed one of its outside directors to oversee an investigation of its historical stock option practices and related accounting treatment, and the investigation is still ongoing.

Medarex said it cannot file its 10-Q until the investigation is complete.

The company also previously announced that it will restate its annual financial statements for 2000 through 2005 and its interim financial statement for the quarter ended March 31.

Medarex is a Princeton, N.J., biopharmaceutical company focused on cancer, inflammation, autoimmune disorders and infectious diseases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.