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  5. IFC: I hold an Intact bond in my RRIF and received a reorg notice proposing "to remove the right to accelerate future scheduled payments in the event of a default to improve the quality of Intact's seni... [Intact Financial Corporation]
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Q: I hold an Intact bond in my RRIF and received a reorg notice proposing "to remove the right to accelerate future scheduled payments in the event of a default to improve the quality of Intact's senior debt capital." Can you explain what this is and why I am being asked to vote on such a proposal? Thanks
Asked by Martin on June 06, 2025
5i Research Answer:

To "remove the right to accelerate future scheduled payments in the event of a default" means changing the loan agreement so that if the company defaults, the lender cannot demand all the remaining payments at once. Instead, the company would only need to catch up on the missed payments, and future payments would still be due on their original schedule. This makes debt a bit safer for senior lenders, in that a small problem or one missed payment does not result in a giant problem where lenders can demand full repayment. It would allow the company to 'catch up' on a missed payment first before perhaps being forced into a full default which could bring down the company. (sorry for the delayed answer, we were looking for confirmation from the company on this).