Emisphere's convertibles will now accrue interest at 13% default rate

Company hasn't paid Sept. 26 principal, interest payments due on notes

By Devika Patel

Knoxville, Tenn., Oct. 9 - Emisphere Technologies Inc. said that, as of Sept. 27, its senior secured convertible notes will accrue interest at the default rate of 13%. The notes are held by MHR Fund Management LLC and previously had an 11% coupon.

The company reported on Sept. 26 that it was in default under the notes. The defaults stemmed from the company not paying about $30.5 million of principal and interest due on the convertibles. The payments were due Sept. 26.

The convertibles are secured by substantially all of the company's assets, and MHR may foreclose on these assets due to the default.

Tarrytown, N.Y.-based Emisphere is a biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.