Thomas Equipment gets preferred stock redemption notice; can't pay $8.14 million redemption amount

By Caroline Salls

Pittsburgh, Aug. 31 - Thomas Equipment, Inc. series A convertible preferred stockholder Federal Partners, LP exercised its right of redemption under the preferred stock, and the company said it can't pay the $8.14 million redemption amount, according to an 8-K/A filing with the Securities and Exchange Commission.

The redemption is a result of Thomas' wholly-owned subsidiary Thomas Equipment 2004, Inc. seeking protection from its creditors in Canada.

Under the certificate of designation for the preferred stock, upon a redemption of the preferred stock the company is required to redeem the shares in cash for an amount equal to 110% of the stock's stated value, plus accrued dividends within 10 trading days of the notice of redemption.

According to the filing, the stated value of the shares of Federal's shares is $7.4 million, which would require an $8.14 million payment, plus dividends.

Based in Milwaukee, Thomas manufactures skid steer and mini-skid steer loaders.

© 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.