NEW YORK, Feb. 9, 2016 /PRNewswire/ -- Chimicles &
Tikellis LLP of Haverford, PA and
Wolf Haldenstein Adler Freeman & Herz LLP of New York, NY, announce that they filed a
class action in the New York Supreme Court in Manhattan on behalf of holders of the 7.45%
Quarterly Interest Bonds due 2032 ("Bonds") (CUSIP: 71902E 20 8)
("Bondholders") against The Phoenix Companies ("Phoenix") as well as U.S. Bank National
Association in its capacity as Trustee. Phoenix, a
publicly-traded insurance company trading on the NYSE under ticker
"PFX", issued and sold $300 million
of Bonds to the public pursuant to a registered offering in 2001.
The action is captioned as Kenneth
Roth on behalf of himself and all similarly-situated
bondholders v. The Phoenix Companies, Inc. and U.S. Bank National
Association, in its capacity as Indenture Trustee, Index No.
650634/2016 (N.Y. Sup. Ct.)
On September 29, 2015, the Company
announced a going-private merger whereby the common stockholders of
Phoenix will be cashed out while
the Bonds remain outstanding ("Merger"). In connection with the
Merger, on January 7, 2016,
Phoenix launched a consent
solicitation ("Consent Solicitation") seeking the Bondholders'
approval to a proposed Supplemental Indenture that would, if
approved, amend § 704 of the Indenture. Bondholders are being
asked to consent to a material amendment to the document that
serves to protect their fundamental rights as Bondholders, the
Indenture Agreement, as amended on February
21, 2014.
The Consent Solicitation, which the complaint asserts is
materially misleading, is scheduled to expire today. As alleged in
the complaint, Bondholders are being asked to consent to material
amendments, including an amendment that would: (a) jettison
Bondholders' right to receive material financial information, to
which they are otherwise entitled; and (b) allow the Trustee to
waive material duties otherwise owed to the Bondholders. The
complaint alleges that the impact on Bondholders if the
Supplemental Indenture is adopted is significant because without
access to material financial information, the Bondholders will not
have critical information about the security underlying the Bonds,
and will be unable to know about or assess the Company's ability to
comply with the financial obligations owed to the Bondholders, as
set forth in the Indenture.
For more details or to see a copy of the complaint, go to
www.chimicles.com. If you possess information relevant to this
action, or purchased the Bonds and would like to discuss your legal
rights and options, please contact attorney Catherine Pratsinakis, Esq. by telephone at
(610)649-1497 or by email at cp@chimicles.com.
CHIMICLES & TIKELLIS LLP
Catherine Pratsinakis, Esq.
Kimberly Donaldson Smith, Esq.
One Haverford Centre
361 West Lancaster Avenue
Haverford, PA 19041
Telephone: (610) 649-1497
www.chimicles.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/phoenix-bondholder-alert-chimicles--tikellis-seeking-to-enjoin-consent-solicitation-300217554.html
SOURCE Chimicles & Tikellis LLP
