mPhase restructures about $1.5 million of toxic convertible debentures

Company seeks flexibility to finance its Smart Nano Battery Technology

By Devika Patel

Knoxville, Tenn., June 6 - mPhase Technologies Inc. said that it has negotiated the restructuring of about $1.5 million toxic convertible debentures with two creditors.

The restructuring will give the company the flexibility it needs to obtain funding for its Smart Nano Battery Technology, including the launch of its new product featuring advanced battery technology targeted for the automotive and marine industries.

The death spiral caused by these instruments has been eliminated to a large extent allowing the company breathing room to carry out its future plans.

"The significant restructuring of this debt, especially the toxic convertible notes, is the result of an aggressive effort on the part of management and the board of directors to improve mPhase's ability to meet its strategic goals of completing the commercialization of its technology and obtain funding in a more ordinary course," the company said in a press release.

mPhase, based in Norwalk, Conn., develops broadband communications products.

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