We are in default under our indenture. As a result, the lenders could foreclose on our assets...
On January 3, 2013, the Company received a Notice of Event of Default (the “Notice”) from Wells Fargo Bank, National Association, the Trustee under the Indenture (the “Indenture”) dated as of May 24, 2011by and among the Company and the Trustee, with respect to the Company’s 7% Convertible Senior Subordinated Notes (the “Notes”). The Notice was triggered by the failure of the Company to pay on December 1, 2012 pursuant to the terms of the Forbearance Agreements dated as of May 31, 2012 entered into with the holders of the Notes, interest in the amount of $332,500 that was due on June 1, 2012 and interest in the amount of $332,500 due on December 1, 2012. The Notes in the aggregate amount of $12,500,000 were originally issued pursuant to the Indenture on May 24, 2011. As of the date of this prospectus, an aggregate amount of $10,000,000 of the Notes remain outstanding. The Company is currently in negotiations with the holders of the Notes to reach an agreement to pay the outstanding interest payments. If we remain in default under the loan agreement, the Trustee or the holders could foreclose on their collateral and commence legal action against us to recover the amounts due which ultimately could require the disposition of some or all of our assets. Any such action could require us to curtail or cease operations.
You've had your fun, your little tear.
Shall we count up the responses to see your bull was received?
Let's begin with the 'thumbs up'. oh, sorry, zero isn't too many, is it"?
I'll leave you to count the 'thumbs down' in private.
Would you like to know how much of my fun and my tear, boo hoo were forwarded in a comprehensive report to the California OAG, US Attorney's Office and the SEC this afternoon? Your right, I am not short, but I will giggle when someone is hauled off in handcuffs. Then "they" can count the "thumbs up" in private. Next to their new cell mate.
I am very cutious why you seen so intent on warning everyone today with you numerous warning posts in a row. I know you can not be shorting this stock so why so intent on warning us on all this old news. I know you can not be just doing it to be a good citizen:)
This is old news. Since that time, the outstanding Common Stock Shares Outstanding have gone from about 150 million to ~282 million shares and this was in some part to raise funds, according to the PROXY Statement, as I understand it. So, this news means nothing. If you own the stock, you accept that they could deep six or that they could sky rocket.