Waste2Energy reports default on its 12% senior convertible debentures

Interest rate rises to 17%; company must pay mandatory default amount

By Devika Patel

Knoxville, Tenn., Oct. 6 - Waste2Energy Holdings, Inc. did not make a principal payment of $2.57 million that was due on its 12% senior convertible debentures on Oct. 1, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

As a result, the company is in default under the debentures and the amounts due under the securities have been accelerated.

The interest rate will go up to 17% starting five days after the default, and the company must pay the mandatory default amount, which is equal to the sum of the outstanding principal and interest divided by the conversion price on the date the mandatory amount is demanded or paid, multiplied by the volume weighted average price of the stock on the date the mandatory amount is demanded or paid.

New York's Waste2Energy makes plants that convert solid waste into energy.

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