- Exela Technologies ( NASDAQ: XELA ) stock dropped 10.5% on Thursday after the company disclosed that its unit Exela Intermediate did not make the semiannual interest payments due under certain notes.
- The notes include 11.5% first-priority senior secured notes due 2026 and 10% first priority senior secured notes due 2023.
- The unit has a 30-day grace period to make the interest payments.
- Exela Intermediate is in advanced talks with potential third-party sources of liquidity, and believes it will have enough funds to meet the coupon payments due under the senior notes during the grace period.
- However, there can be no assurance that the unit will successfully raise capital for the payments.
- Read why Exela ( XELA ) is at high risk of performing badly, according to SA Quant .
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Exela stock drops over 10% as unit skips interest payments on senior notes