Mobilepro secures forbearance agreement for convertible debentures

By Devika Patel

Knoxville, Tenn., May 5 - Mobilepro Corp. has negotiated a forbearance agreement with YA Global Investments, LP, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Under the agreement, YA Global has agreed to forbear from enforcing its rights in regards to the company's $13.39 million secured convertible debenture until June 1.

The debenture, which was issued in June, matured on May 1. At maturity, there was about $13.15 million outstanding under the note. It is accruing interest at 12% during the forbearance period.

During the forbearance period, YA Global and the company have agreed to consider a plan to repay or restructure the debenture.

If an agreement can't be reached, YA Global may exercise its rights, which include foreclosing on company assets.

Located in Bethesda, Md., Mobilepro is a broadband and wireless telecommunications provider.

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