Hemagen asks holders to forgo coupon payments for 8% convertibles

Company may not be able to make interest payments through March 2013

By Marisa Wong

Madison, Wis., July 6 - Hemagen Diagnostics, Inc. requested that holders of $4,049,858 principal amount of its 8% senior subordinated secured convertible notes due 2014 forgo the right to receive upcoming interest payments.

Specifically, the company is asking holders to give up the right to receive interest for the quarters ending June 30, Sept. 30, Dec. 31 and March 31, 2013.

According to an 8-K filing with the Securities and Exchange Commission, failure to make these interest payments may constitute events of default under the notes, possibly resulting in the acceleration of the company's obligation to repay the principal amount with accrued interest and penalties.

The 2014 convertible notes were issued in 2009 as part of an exchange offer for Hemagen's 8% senior subordinated secured convertible notes due 2009.

Hemagen is a Columbia, Md.-based biotechnology company.

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