Accentia defaults on $14.1 million non-interest bearing convertibles

Company neglected to pay debentures' principal when due on Nov. 17

By Devika Patel

Knoxville, Tenn., Nov. 26 - Accentia BioPharmaceuticals, Inc. is in default under $14.1 million of non-interest bearing convertible debentures, which were issued in November 2010, according to an 8-K filed with the Securities and Exchange Commission. The default stems from the company not paying the principal when it came due on Nov. 17.

A default rate of 18% will begin accruing on the debentures, and the holders are entitled to an additional 30% default payment. None of the investors have taken any action to secure a judgment against the company yet.

Accentia is a biopharmaceutical company based in Tampa, Fla.

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