Environmental Power fails to cure default under 14% convertible notes

By Devika Patel

Knoxville, Tenn., March 1 - Environmental Power Corp. received a notice from the trustee of its $8 million in 14% convertible notes due Jan. 1, 2014 on Feb. 11, declaring that the company is in default under the notes, according to an 8-K filed Monday with the Securities and Exchange Commission.

As previously reported, the company failed to make a $560,000 semiannual interest payment on the convertibles, which was due on Jan. 4. Consequently, the company defaulted on the notes, since it failed to resolve this unpaid interest by Feb. 3.

Investors may now accelerate the convertibles and demand payment, but none have yet done so. Holders of at least 50% of the notes' principal may also begin collection proceedings.

Tarrytown, N.Y.-based Environmental Power is a developer, owner and operator of biogas renewable energy projects.

© 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.