Amkor threatened with Nasdaq removal
The Nasdaq Staff Determination notice indicated that Amkor's securities will be delisted from the Nasdaq Stock Market unless Amkor requests a hearing before a Nasdaq Listing Qualifications Panel. Accordingly, Amkor will request a hearing to review the Nasdaq Staff Determination, and pending a decision by the hearing panel, Amkor's common stock will remain listed on The Nasdaq National Market. However, there can be no assurance that the hearing panel will grant the company's request for continued listing.
In addition, the Company has received letters from U.S. Bank National Association as trustee and Wells Fargo Bank, National Association as trustee alleging that the failure of Amkor to file its Quarterly Report constitutes a default under the indentures governing the fiscal loans and notes the company currently has on about $1.62 billion in debt.
The letters also allege that the failure by Amkor to cure the purported default within 60 days from the date of notice will result in the occurrence of an "Event of Default" under the indentures.
If an "Event of Default" were to occur under the indentures governing the notes, the trustee or holders of at least 25% in aggregate principal amount of such series of notes then outstanding could attempt to declare all related unpaid principal and premium, if any, and accrued interest on such series of notes then outstanding to be immediately due and payable. As of the date hereof, there is approximately $1.62 billion of aggregate unpaid principal outstanding of the above mentioned notes.
On July 26, 2006, Amkor announced that its board of directors has established a special committee of independent directors to review the company's historical stock option practices. The special committee is being assisted by independent legal counsel. Amkor is focusing significant effort on completing its options review in order to file its Quarterly Report on Form 10-Q on or before October 9, 2006 and thereby avoid any purported Event of Default.
