Atlantis Systems allegedly defaults on C$3.1 million in convertible debentures

By Sheri Kasprzak

New York, Aug. 16 - Atlantis Systems Corp. has allegedly defaulted on C$3.1 million in convertible debentures, and holders of that debt are now demanding payment in full.

According to a statement released by Atlantis Wednesday morning, the company reported the C$3.1 million in convertible debentures outstanding as a current liability due to a breach of a financial covenant. The breach, according to the statement, constituted an event of default under the debentures, which would allow the holders to demand payment of principal and interest, determined to be C$3,037,808.

"The company intends to repay the full amount outstanding under the debenture," according to the statement.

"Atlantis is well-capitalized and we will repay this debt using available cash on hand," said Andrew Day, the company's chief executive officer, in the statement. "Our balance sheet is strong and we remain confident in our ability to pursue our strategic objectives and execute our growth plan."

Toronto-based Atlantis develops desktop and full-flight simulation used for military, commercial aviation and energy market applications.

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