American Technologies in default on $2 million secured convertible note

By Devika Patel

Knoxville, Tenn., Feb. 7 - American Technologies Group, Inc. said in an 8-K filing with the Securities and Exchange Commission Thursday that noteholder Laurus Master Fund, Ltd. notified the company that it is in default on its $2 million secured convertible term B note.

The company said it received the notice on Jan. 31. It also was notified by LV Administrative Services, Inc., Laurus' administrative and collateral agent, that it owes $13,580,810 in principal, interest and default fees with immediate payment demanded by Feb. 1.

Since the company did not pay that amount, it said in the filing that Laurus may exercise its rights to take possession of the note's collateral in the form of subsidiary stock, goods, inventory and other property, as allowed under the pledge agreement.

The company said in the filing it is in negotiations with Laurus to settle the amount owed and that it expects an agreement will be finalized in March. But it emphasized that it cannot be certain that these negotiations will be successful and reiterated that Laurus still might pursue its collateral collection rights.

Based in Monrovia, Calif., American Technologies Group is a technology company focused on the automobile after-market and water purification sectors.

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