As previously disclosed, Clovis Oncology elected to not make the interest payment in respect of its 1.25% Convertible Senior Notes due 2025 that was due on November 1, 2022. Under the indenture governing the 2025 Notes, the company had a 30-day grace period from the Interest Payment Date to make the Interest Payment before such nonpayment would constitute an "event of default" under the indenture with respect to the 2025 Notes. The company did not make the Interest Payment on December 1, 2022, and, as a result, an "event of default" has occurred under certain of the company’s debt instruments. Given the Company’s previously disclosed liquidity situation, the company currently expects to file a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the very near term.
Published first on TheFly
