Late Report by Saks Puts It in Default on Notes
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Department store operator Saks Inc. said its failure to file its annual report on time put it in default on some convertible notes.
Saks said it received a notice of default Tuesday from a hedge fund that owns more than one-quarter of the $230-million, 2% convertible senior notes due March 15, 2024.
The notice said Saks breached covenants in the loan agreement that required it to file its annual report with the Securities and Exchange Commission and other reports.
On Friday, Saks said it would postpone filing its first-quarter and full-year report beyond an extended deadline as it probed payments from its vendors at its Saks Fifth Avenue division.
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