US Dataworks receives third default notice on convertible note

By Devika Patel

Knoxville, Tenn., June 27 - US Dataworks, Inc. received a default notice from Castlerigg Master Investments Ltd., a holder of its senior secured convertible note due Nov. 13, 2010 on June 23, according to an 8-K filed Friday with the Securities and Exchange Commission.

The company informed Castlerigg on June 26 that there has been no event of default and demanded that Castlerigg withdraw the notice.

As previously reported, the company received default notices from holders Highbridge International LLC and Cranshire Capital, LP on June 13 and June 17.

The company notified those investors on June 19 that their default claims were unfounded due the notes' registration rights agreement stating that a registration statement is not necessary if the registrable securities can be sold in a Rule 144 deal, as the company's common shares can. The company also demanded that the investors immediately withdraw their default notices.

US Dataworks is a Houston-based developer of payment processing solutions.

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