Ignis negotiates forbearance agreement regarding convertible debentures sold to YA Global

By Devika Patel

Knoxville, Tenn., July 23 - Ignis Petroleum Group, Inc. negotiated a forbearance agreement with YA Global Investments, LP, a holder of some of the company's secured convertible debentures, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The agreement is necessary due to the company's failure to register the common shares underlying the debentures with the SEC.

The agreement stipulates that YA Global will forbear from exercising its rights and remedies under the debenture agreement from July to Jan. 5, 2009.

During this time, the company agreed to pay YA Global $55,000 per month, beginning in August.

The company also adjusted the conversion price of each of the following debentures: the $2.5 million secured convertible debenture issued to YA Global on Jan. 5, 2006, the $1.5 million secured convertible debenture issued to YA Global on Feb. 9, 2006 and the $1 million secured convertible debenture issued to YA Global on April 28, 2006.

The new conversion price for all of those debentures is now $0.03.

Based in Dallas, Ignis is an oil and natural gas exploration, acquisition and development company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.