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Debt Issuers Have No Duty to Timely File With SEC

(CN) - The Trust Indenture Act does not require debt issuers to timely file reports with the Securities and Exchange Commission, the 5th Circuit ruled on first impression.

The appeals court in New Orleans sided with Affiliated Computer Services, which sought a declaratory judgment that it did not breach its indenture agreement with the Bank of New York Trust Co., later substituted by Wilmington Trust Co.

Wilmington Trust counterclaimed that ACS failed to timely file a Form 10-K with the SEC.

Judge Stewart said the law requires the debt issuer to provide its trustees with copies of the SEC reports, but "does not impose an independent obligation actually timely to file reports with the SEC."

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