Asyst Technologies Disputes Notice of Default Related to Its Convertible Subordinated Notes.FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif. -- Asyst Technologies, Inc. (Nasdaq:ASYT), announced today that on August 16, 2006, it received a letter from U.S. Bank National Association, as trustee under the Indenture related to Asyst's 5 3/4% Convertible Subordinated Notes due 2008, which asserts that Asyst is in default under the Indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. because of the previously announced delays in filing its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2006 and Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended June June: see month. 30, 2006. The letter states that this asserted default is not an "Event of Default" under the Indenture if the company cures the default within 60 days after receipt of this notice, or the default is waived by the holders of a majority in aggregate principal amount of the notes outstanding. If an Event of Default were to occur, the holders of the notes, of which $86.3 million principal amount is outstanding, may accelerate maturity of the notes. Asyst does not agree with the trustee's assertion that the delayed filing of the annual and quarterly reports is a default, and reserves its rights to contest this and other aspects of asserted default in the letter. |
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