general cable corp (BGC) Key Developments
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against General Cable Corporation
Dec 4 13
Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of General Cable Corporation securities during the period between May 2, 2011 and November 4, 2013. The complaint charges General Cable and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the class period, defendants issued materially false and misleading statements regarding General Cable's financial performance and business prospects and overstated the company's reported revenue. As a result of defendants false and misleading statements, the company's stock traded at artificially inflated prices during the class period, trading as a high of $47.90 per share on May 2, 2011. On October 15, 2013, the company filed a Form 8-K with the SEC disclosing that the company would be restating previously issued financial statements for fiscal years 2008 through 2012 and the interim periods during those years and the financial statement for the three fiscal months ended March 29, 2013, related to the company's value added tax and revenue recognition in connection with historical bill and hold transactions for aerial transmission projects in Brazil. The company further disclosed that the financial statements should no longer be relied upon. On this news, the company's stock price dropped $1.63 per share on October 15, 2013, to close at $32.24 per share. Then, on November 4, 2013, the company issued a press release announcing disappointing preliminary results for its third quarter of 2013, reporting that its estimated net sales were lower than expected principally due to demand in North America for aluminum based products including aerial transmission, construction and rod and strip as well as the impact of changes in 'bill and hold' revenue recognition accounting for aerial transmission projects in Brazil. On this news, the company's stock price dropped $5.95 per share on November 5, 2013, to close at $28.46 per share, a one-day decline of 17% and a 40% decline from its class period high of $47.90 per share. Plaintiff seeks to recover damages on behalf of all purchasers of the company's securities during the class period.
Levi & Korsinsky, LLP Announces Class Action Lawsuit against General Cable Corporation and its Board of Directors
Nov 12 13
Levi & Korsinsky announced that a class action lawsuit has been commenced in the USDC for the Southern District of New York on behalf of investors who purchased General Cable Corporation between May 3, 2011 and October 14, 2013. The complaint alleges that throughout the Class Period, defendants failed to disclose that the company understated cost of sales and goodwill, overstated inventory balances and its value added tax credits, and improperly recognized revenue in connection with "bill and hold" transactions for aerial transmission projects in Brazil. In an October 15, 2013 SEC filing, the company announced that due to certain accounting errors, the company's previously issued financial statements for the fiscal years 2008 through 2012, all quarterly filings from 2008 to 2012, and for the three fiscal months ended March 29, 2013 should no longer be relied upon. If suffered a loss in General Cable have until December 20, 2013 to request that the Court appoint as lead plaintiff. Ability to share in any recovery doesn't require that serve as a lead plaintiff.
General Cable Announces Expiration of Consent Solicitation and Receipt of Requisite Consents
Nov 11 13
General Cable Corp. announced that it has received the requisite consents with respect to its previously announced consent solicitation related to certain proposed amendments and related waivers to the indentures governing its Senior Floating Rate Notes due 2015 and 5.750% Senior Notes due 2022 upon the terms and subject to the conditions set forth in the Consent Solicitation Statement, dated November 4, 2013 and the related Consent Letter. The Solicitation expired at 5:00 p.m., New York City time, on November 8, 2013. As of the Expiration Date, the company had received the requisite number of Consents required to approve the Amendments and Waivers and, accordingly, the company, its U.S. subsidiaries that serve as guarantors, and U.S. Bank National Association, as trustee, have executed supplemental indentures implementing the Amendments with respect to the Notes. All Consents validly delivered and not revoked prior to the Expiration Date have been accepted by the company.
General Cable Corp. announced delayed 10-Q filing
Nov 7 13
On 11/07/2013, General Cable Corp. announced that they will be unable to file their next 10-Q by the deadline required by the SEC.
General Cable Announces Consent Solicitation with Respect to its Senior Floating Rate Notes Due 2015 and 5.750% Senior Notes Due 2022
Nov 4 13
General Cable Corporation announced that it has commenced a consent solicitation to amend the indentures and to provide related waivers with respect to its Senior Floating Rate Notes due 2015 and 5.750% Senior Notes due 2022. The solicitation will expire at 5:00 p.m., New York City time, on November 8, 2013 unless extended by the company. Only note holders of record as of 5:00 p.m., New York City time, on November 1, 2013 may provide consents and be eligible to receive the applicable consent fees. Upon the terms and subject to the conditions of the solicitation, if the requisite consents are obtained on or prior to expiration of the solicitation, note holders will receive additional interest at the rate of 0.50% per annum from November 1, 2013 until the earlier of (i) the date that the company complies with the reporting covenants under the indentures, and (ii) March 17, 2014. note holders who deliver a valid unrevoked consent on or prior to the expiration of the solicitation will also be eligible to receive the consent fee which will only be payable in the event the company has not complied with the reporting covenants by January 31, 2014. The Solicitation is subject to certain terms and conditions dated November 4, 2013 and the related consent form. The consent solicitation statement and related consent form contain important information, and holders should read them carefully before making any decision with respect to the solicitation.