Wednesday, March 23, 2005

Riverstone Settles Noteholder Litigation

Riverstone Networks announced an agreement to settle its pending noteholder litigation. Riverstone will offer to redeem up to $65,875,000 of the outstanding $131,750,000 in notes from current noteholders, at face value, with no premium. The Company also agreed to reimburse $675,000 in attorneys' fees and administrative costs incurred by the noteholders as a result of the litigation. In exchange, the majority noteholders who initiated the litigation have agreed to waive the alleged default on which they based their claims. The majority noteholders have also agreed to a full release of the claims asserted against the company, which prevents their claims from being asserted again at a future date.

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