Enable is in default on 18% debenture, cross default on 12% debentures

By Marisa Wong

Madison, Wis., Sept. 13 - Enable Holdings, Inc. received notice of an event of default under its 18% senior secured debenture issued Oct. 16, 2008 on Sept. 9, according to an 8-K filed Monday with the Securities and Exchange Commission.

The notice stated that the company was in default for failure to make a timely quarterly interest payment due on June 30 and for negotiating with creditors with a view toward arranging a restructuring of the company's debt.

According to the filing, the events of default triggered an event of default under the 12% senior secured debentures issued April 29, 2009, following from a cross default provision in an intercreditor agreement dated April 28, 2009 between each 18% debenture holder and each 12% debenture holder and the company. An event of default under the 18% debenture constitutes an event of default under the 12% debentures.

As a result of the event of default and the cross default, the 18% and 12% debenture holders have accelerated the outstanding principal amount of all of the debentures, plus all accrued interest and any other amounts owed.

These amounts are immediately due and payable in cash, payable no later than Sept. 14. The total amount due under the debentures is approximately $1.7 million.

Based in Chicago, Enable operates an online marketplace.

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