Mobilepro extends forbearance agreement for convertible debentures

By Susanna Moon

Chicago, June 5 - Mobilepro Corp. investor YA Global Investments, LP agreed in a June 2 letter to extend the forbearance period until June 5 for the $13 million of bonds due May 1, 2009, according to an 8-K filing with the Securities and Exchange Commission.

The company said on May 5 that it negotiated an agreement in which YA Global agreed to forbear from enforcing its rights on the company's $13.39 million secured convertible debenture until June 1.

During the extended forbearance period, Mobilepro and YA Global agreed to discuss and consider a plan to repay or restructure the debenture.

Mobilepro said that it "intends to work diligently with YA Global during the extended forbearance period, [but that] there is no guarantee that the parties will reach a mutually agreeable repayment or restructuring plan."

If unable to reach an agreement on repayment or restructuring, YA Global could potentially exercise its rights as the company's senior secured creditor and foreclose on the company's assets, the filing said. In that event, the company may not be able to continue as a going concern.

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.

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

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