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MINNEAPOLIS (AP) -- Nash Finch Co. said Friday a Minnesota court has granted the company a temporary restraining order preventing several hedge funds from accelerating the debt due on loans made to the food distributor. Last month, the hedge funds issued a default notice saying the company was in breach of a covenant within its senior subordinated convertible notes due 2035. The covenant provides for an adjustment in the conversion rate of the notes if Nash Finch raises its dividend. Nash Finch is disputing the default and is asking the court to rule that it adjusted its rates properly after raising its dividend to 18 cents per share from 13.5 cents per share. The temporary restraining order will remain in effect until 10 days after the court reaches a decision in the case, Nash Finch said. The order also gives the company 30 days to cure the alleged default under the indenture if the court decides a default occurred, the company added. Nash Finch shares rose 43 cents to close at $41.16.
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