Orion Ethanol may be in default on 8% convertible notes

By Devika Patel

Knoxville, Tenn., June 17 - Orion Ethanol, Inc. received a notice of default from counsel to 17 holders of the company's 8% convertible senior notes, which were issued in November 2006, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The notice, received on June 10, demanded that the company immediately pay the $13.43 million in unpaid principal and interest.

The notice alleges that the company defaulted on the notes by failing to comply with the terms of a registration rights agreement, which required the company to file a registration statement with the SEC by a certain deadline for the securities it must issue upon the notes' conversion.

The company disputes the allegations and disputes that it is in default. It believes that it is in full compliance with its obligations under the notes and said it will vigorously defend against any allegations to the contrary.

Orion Ethanol is a Pratt, Kan.-based renewable energy company with a focus on ethanol production.

© 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.