Celsia won't have to pay interest on 8% debentures until 2010

By Devika Patel

Knoxville, Tenn., April 1 - Open Energy Corp. amended its agreement with the holders of its 8% secured convertible debentures that were sold in a May 2007 private placement, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The filing said that on March 26, the company obtained consent from more than 70% of the holders to stop making interest payments in shares or cash. Instead, the interest will accrue and become due in cash at maturity, May 25, 2010.

In consideration for allowing this, noteholders will be paid a one-time distribution equal to 2% of the principal amount of their holdings as of March 31. This will be paid in lieu of the April 1 interest payment and along with the other interest payments at maturity.

Holders may convert any unpaid interest into common shares at the applicable interest conversion rate at any time up to maturity.

Based in Miami, Celsia develops and licenses thermal-management projects and technologies for the personal computers, consumer electronics, lighting and display sectors.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.