Integrated Electrical receives default notice from second note trustee

New York, Sept. 7 - Integrated Electrical Services Inc. said it received a notice of default from the trustee for a second series of senior subordinated notes, this one with $62.9 million outstanding.

On Sept. 2, Integrated Electrical said it received a notice of default from the trustee for a series of senior subordinated notes with $110 million outstanding.

Both notices say a default has occurred because the company failed to file its 10-Q report for the third quarter of fiscal 2004 with the Securities and Exchange Commission.

Integrated Electrical has 30 days to obtain a waiver from holders of a majority of its senior subordinated notes. The company said it is in the process of seeking a waiver.

Integrated Electrical also said on Sept. 2 that the waiver from lenders under its credit facility expired because it received the first notice of default on the notes, putting Integrated Electrical in default on the facility. Without the default notice the waiver would have run through Dec. 15.

The company said it is also seeking a waiver from its bank lenders.

Currently Integrated Electrical has $29 million in cash.

The delay in filing the 10-Q resulted from a continuing evaluation of projects that could lead to restatements in one of the company's regions.

The Houston provider of electrical contracting services said it expects to file its third quarter report at the same time it files its year-end financial statements.

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