Arkados avoids default by renegotiating terms of 6% convertible debentures

By Devika Patel

Knoxville, Tenn., April 8 - Arkados Group, Inc. amended its agreement with the holders of its $9.28 million outstanding 6% secured convertible debentures due Dec. 31, which were sold in several private placements in 2006 and 2007, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The filing said that on April 2, the company obtained consent from 94.48% of the holders to waive all potential defaults caused by it missing a scheduled interest payment of about $255,000.

The consenting holders agreed to add the interest that was due to the notes' principal.

In exchange for this concession, the company agreed to issue additional debentures equal to 10% of the principal amount held by each investor.

Based in Piscataway, N.J., Arkados is a fabless semiconductor manufacturer.

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