OneRoof Energy fails to pay rent, triggering default on secured loan

New York, Jan. 20 – OneRoof Energy, Inc. said it is in default on the lease for its head office due to failure to pay rent and that the lease default has triggered a default on its secured loan facilities.

Consequently, the secured lenders have the right to demand immediate payment of principal and interest on the loan, totaling $100 million.

So far, OneRoof said, the lenders have not given a notice of default or acceleration.

The company added that the amount of borrowings “greatly exceeds” the value of its assets.

OneRoof is currently in discussions with the landlord for its office. The amount owing is more than $160,000.

The company also said that it may be forced to vacate its office space.

OneRoof is winding down its operations and as part of that it has amended the employment agreements of David Field, president and chief executive officer, and Dalton Sprinkle, senior vice president and general counsel.

Field’s agreement was amended to eliminate all bonus potential and reduce the severance obligations payable if his employment is terminated without cause or he resigns for good reason.

Field will now receive a severance payment of $266,000 if sale or refinancing agreements are put in place for substantially all the company’s solar project assets by Feb. 28 or if he is terminated before that date without cause or he resigns for good reason. If the conditions are not satisfied, Field will receive $133,000. Previously he would have received 12 months of salary, a portion of his bonus and reimbursement of Cobra health costs for 12 months for a total of more than $425,000.

Sprinkle will now receive $2,800 per day instead of $280,000 a year. His agreement was also amended to eliminate all bonus potential and reduce the severance obligations payable if his employment is terminated without cause or he resigns for good reason. Previously he would have received 12 months of salary, a portion of his bonus and reimbursement of Cobra health costs for 12 months for a total of more than $300,000.

OneRoof is a San Diego-based residential solar services provider and wholly-owned subsidiary of OneRoof Energy Group, Inc.

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