BioEnvelop Technologies allegedly defaults on C$1.7 million in convertible debentures

By Sheri Kasprzak

New York, Aug. 11 - BioEnvelop Technologies Corp. received notice of default on C$1.7 million in convertible debentures the company issued in March and May of 2006.

Investor Quorum Secured Equity Trust alleges the company defaulted on the debentures and, under the offering terms, the company must remedy the situation within 10 days of the notice.

There was no immediate indication of what triggered the event of default by press time Friday.

"There is no guarantee that the corporation will be able to cure this event of default, in which case the corporation may be forced to seek protection under the Companies' Creditors Agreement Act (Canada) or file for bankruptcy under the Bankruptcy and Insolvency Act (Canada)," said the statement released by BioEnvelop on Friday.

BioEnvelop, based in Montreal, develops a coating solution used to prolong the shelf life of fresh and frozen food products.

The stock closed unchanged at C$0.075 Friday (TSX Venture: BIE).

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