Verso Technologies restructures outstanding 7.5% convertible debentures

By Sheri Kasprzak

New York, July 25 - Verso Technologies, Inc. said it has restructured $4.5 million in outstanding 7.5% convertible debentures.

The company will repay 25% of the principal - or $1.1 million - on Tuesday. Verso plans to repay 15% of the principal amount in equal monthly installments between Aug. 1 and Oct. 1.

A total of $450,000 - or 10% of the principal - will be repaid on the maturity date, Nov. 22. The remaining half of the debentures will be paid in equal monthly installments beginning in January 2006 through October 2006.

The interest rate will remain at 7.5% until maturity, but will increase to 12% through the remainder of the term.

For the restructuring, the debentureholders received warrants for 4 million shares, exercisable at $0.50 each. Three million of the warrants expire on Jan. 7, 2007 and may be cancelled if the debentures are fully repaid by Nov. 22. Those warrants may also be called if the company's stock trades above $0.65 per share for more than 10 consecutive trading days.

The remaining 1 million warrants expire in five years and are not callable or cancelable.

Verso, based in Atlanta, provides communications packages for long-distance phone carriers.

On Monday, the company's stock closed unchanged at $0.43.

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