Mobilepro forbearance agreement expires; YA Global plans to foreclose

By Devika Patel

Knoxville, Tenn., June 11 - Mobilepro Corp.'s forbearance agreement with YA Global Investments, LP has expired and the company is in default, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Under the agreement, YA Global agreed to forbear from enforcing its rights in regards to the company's $13.39 million of secured convertible debenture until June 5. The agreement had been extended from June 1, and YA Global did not agree to extend the agreement again on June 5, resulting in the default.

The investor intends to exercise its rights as the company's senior secured creditor since the company does not have the cash needed to pay off the debenture.

If YA Global forecloses on the assets securing the debenture, the company says it will not be able to continue its operations.

The debenture, which was issued in June 2008, matured on May 1. At maturity, there was $13.15 million outstanding under the note. It accrued interest at 12% during the forbearance period.

Located in Bethesda, Md., Mobilepro is a broadband and wireless telecommunications provider.

© 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.