Coroware gets forbearance agreement for convertibles held by YA Global

Investor agrees to consolidate debt into secured convertible debenture

By Devika Patel

Knoxville, Tenn., Feb. 9 – Coroware, Inc. said it negotiated a forbearance agreement in regards to its convertible notes held by YA Global Investments, LP. The convertibles were previously in default.

Under the agreement, the investor has agreed to consolidate the $2,829,690 of debt owed into a new convertible debenture secured by CoroWare intellectual property and other assets.

YA Global agreed to refrain from converting the new debenture or exercising any other rights until April 30, 2016.

“I am pleased to report that CoroWare and YA Global have reached accord through this forbearance agreement,” president and chief executive officer Lloyd Spencer said in a press release. “Through this agreement, CoroWare is furthering its long term plan to restructure and extinguish convertible debt with the objective of reducing debt and increasing shareholder value.”

In return for the forbearance, CoroWare has agreed to a monthly repayment plan that will partially extinguish the interest during a period ending on April 30.

Redmond, Wash.-based Coroware is a small system integrator focusing on communication and automation systems.

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