Home Solutions tries to amend preferreds, investors want redemption

By Devika Patel

Knoxville, Tenn., Dec. 23 - Home Solutions of America Inc. did not properly issue its series C-1 preferred stock and series C-2 preferred stock, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company said in the filing that it offered to exchange the preferreds for two new series of preferred stock (with rights, powers and preferences substantially identical to the terms of the originally issued preferred stock) that would be properly issued.

The largest investor has indicated his willingness to consent to the exchange.

However, on Dec. 17, after the notification, the company said it received a redemption notice from Sondra Beit and MT Trading LLC, holders of $1.5 million, or approximately 17% of the preferreds.

The company said it notified Beit and MT that it does not believe that redemption is an appropriate remedy and it intends to contest the redemption demand.

Based in Dallas, Home Solutions provides recovery, restoration and rebuilding services.

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