Pinnacle Holdings Faces Call by Note Holders on $200M Debt

The payment would have funded interest due March 15 to note holders of Pinnacle's 5.5% convertible subordinated notes.

If Pinnacle can't make the payment to note holders by April 15, lenders and the holders can call in the entire $200 million principal amount, the company says in a prepared statement.

Pinnacle's lenders could also accelerate payments on its 10% senior discount notes due in 2008, the statement says. If that happens, Pinnacle Holdings or Pinnacle Towers Inc., or both companies, would have no alternative but to voluntarily file for Chapter 11 protection, the company says.

Pinnacle says it may be able to raise new capital but to do so would require restructuring its existing debt load. That could only be done when it is in Chapter 11 reorganization, the statement says.

Sarasota is 180 miles northwest of Downtown Miami.