occurrence upon the following trigger events:
1. Bankruptcy. The company files a voluntary Chapter 11, Chapter 7 or Chapter 15 petition.
2. Involuntary Petition. An involuntary bankruptcy petition is filed against the company.
3. Default. A significant event of default is reported with respect to a company's obligations. Usually this will be a default in payment of principal or
interest on debt.
4. Distressed Exchange Offer. The company announces an exchange or tender offer for outstanding debt or preferred stock at a significant discount
from face value.
5. Preferred Dividend Omission. The company omits the dividend on its preferred stock.
6. Restructuring. The company proposes a significant restructuring of its obligations.
7. Debt at Deep Discount. The company's public debt trades with a current yield or yield-to-maturity in excess of the lower of 18% or eight points over
the long-term treasury bond rate.
8. Low Rating. The company's public debt is downgraded (or new rating is set) by a major rating agency to or below a level indicating a "current
vulnerability to default," such as Standard & Poor's CCC rating.
9. Audit Concerns. The company's auditor, (i) qualify their opinion on its financial statements in a manner that indicates doubt about its ability to
continue as a going concern, (ii) resign or (iii) take other action that indicates possible concerns.
10. Covenant Problems. The company violates or indicates that it is likely to violate covenants in its debt agreements.
11. Loss/Deficit. The company reports a significant quarterly or year-end loss, equity deficit, or strained liquidity.
12. Miscellaneous. Some other event occurs or is reported which, in the opinion of the editors, indicates that the company may be in or approaching
financial distress or otherwise raises doubts about the future prospects of the company.
