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EMTA, investors agree to dismiss all litigation concerning $3 million in 6% convertibles
By Devika Patel
Knoxville, Tenn., Jan. 14 - EMTA Holdings, Inc. has had all litigation in regards to its 6% callable secured convertible notes dismissed, according to an 8-K filed with the Securities and Exchange Commission dated Jan. 2.
The company and its investors reached an agreement and filed to have all complaints and counterclaims dismissed, the 8-K stated.
The notes were issued under a securities purchase agreement dated April 28, 2006.
As previously reported, holders of the $3 million in notes, AJW Offshore, Ltd.; AJW Qualified Partners, LLC; AJW Partners, LLC; and New Millennium Capital Partners II, LLC, asserted that the company was in default under the notes.
EMTA denied the default, and the noteholders filed a breach-of-contract suit.
EMTA informed the investors that it was suspending its agreements with them on Aug. 23.
On Sept. 11, the investors issued a default notice alleging that EMTA had failed to honor its conversion obligations under the notes, the filing said.
As a result of the default notice, the entire outstanding principal amount plus accrued interest on the notes, which totals $2.42 million, would have been due immediately.
On Sept. 14, the investors filed a complaint in the Supreme Court of the State of New York, County of New York, alleging that EMTA has breached its contracts by not honoring notices of conversion for the notes.
The company filed to have the case remanded to the U.S. District Court, Southern District of New York, and filed counterclaims against the investors, according to the 8-K.
On Dec. 27, the parties filed an agreed dismissal of the investors' complaint and the company's counterclaims with the court. On Jan. 2, the dismissals were entered by the court. The investors have agreed to refrain from enforcing or collecting on the notes, the filing said.
EMTA is an energy conservation company based in Scottsdale, Ariz.
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