Super Micro Delisting Risk Puts $1.7 Billion Bond Repayment On The Line

Super Micro Computer, Inc. (NASDAQ:SMCI) faces possible delisting after its auditor Ernst & Young resigned amid allegations of accounting irregularities and claims of potential export control violations. Adding to Super Micro’s woes, the company could face an early repayment on up to $1.725 billion of its bonds if delisted. 

The Details: According to the bonds documentation, holders of Super Micro’s $1.725 billion convertible notes due March 2029 have the option of getting their money back early if the shares are delisted from Nasdaq and are not immediately re-listed, re-traded or re-quoted.

Super Micro faces a potential delisting from the Nasdaq if it does not submit its annual report to the …

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