Drinks Americas amends events of default under 8% convertible notes

Lender IBC Funds agrees to waive interest accrued through March 15

By Marisa Wong

Madison, Wis., Feb. 26 - Drinks Americas Holdings, Inc. entered into a second amendment to its 8% convertible promissory notes with investor IBC Funds LLC on Feb. 24, according to an 8-K filing with the Securities and Exchange Commission.

Drinks Americas issued the notes in tranches of $35,000, $70,000, $150,000 and $200,000 that were originally dated Nov. 1, 2012 and due May 1, 2013. The notes were previously amended on Jan. 9.

Under the latest amendment, IBC agreed to waive any and all interest accrued on the notes through March 15, and the company agreed to add two events of default under the notes.

The additional events of default are (i) failure to file with the SEC by March 1 an annual report on Form 10-K for the fiscal year ended April 30, 2013, if the failure is not cured within three business days and (ii) failure to file with the SEC by March 15 quarterly reports on Form 10-Q for the quarterly periods ended July 31, 2013 and Oct. 31, 2013, if that failure is not cured within three business days.

The beverage distribution company is based in Simi Valley, Calif.

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