Torrent Energy defaults on series E convertible preferreds sold to YA Global

By Devika Patel

Knoxville, Tenn., April 7 - Torrent Energy Corp. failed to make a mandatory April 1 redemption payment on the 25,000 series E convertible preferred shares it sold to YA Global Investments, LP in June 2006, according to an 8-K filed Monday with the Securities and Exchange Commission.

According to the filing, the company's failure to pay constitutes an event of default under the investment agreement, which means YA Global could demand that the company redeem all or some of the preferreds.

In an 8-K filed with the SEC on Feb. 14, the company said that YA Global has already demanded that Torrent Energy redeem all of the preferreds for the full liquidation amount, plus unpaid dividends.

Torrent Energy is a Portland, Ore.-based natural gas exploration company.

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