Investor: Global Axcess in default on $3.5 million 9% convertible note

By Devika Patel

Knoxville, Tenn., Dec. 19 - Global Axcess Corp. received notice from investor Camofi Master LDC that it is in default on its $3.5 million 9% senior subordinated secured convertible note due Oct. 27, 2010, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The notice demands immediate payment of 110% of the principal amount, plus all accrued interest and all other amounts, costs, expenses and liquidated damages due.

According to the note's terms, any overdue interest must be paid at 20% per annum from the date the interest was due through the payment date.

Global Axcess denies it is in default and said it is "vigorously defending its position."

If a court rules that there has been a default, the company estimates that, as of Wednesday, it would owe $3.88 million.

Based in Ponte Verde Beach, Fla., Global Axcess owns and operates automated teller machines.

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