American Capital Receives Acceleration Notices From Noteholders and Enters Into Forbearance Agreements

American Capital Ltd. (NASDAQ:ACAS) announced that it has received notices of acceleration concerning $393 million of its privately placed notes. Shortly after the receipt of these notices, American Capital entered into forbearance agreements with holders of 99% of the notes. Under these agreements, each of the participating holders have agreed that they will not sue American Capital to collect payment for the outstanding amounts owed under its notes or to commence an involuntary bankruptcy proceeding, absent certain events, unless the holders of a majority of the outstanding principal amount of its notes have agreed to terminate the forbearance period.

Under the terms...

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