Vertical Branding gets third deferral for principal payments on convertibles

By Devika Patel

Knoxville, Tenn., March 19 - Vertical Branding, Inc. has deferred a principal payment of $581,000 due on its $2.3 million in subordinated secured convertible notes, according to an 8-K filed Thursday with the Securities and Exchange Commission.

This is the third deferral on the payment, which originally had been deferred to Jan. 5. The notes originally were due from August through December.

On Feb. 20, the company and Gottbetter Capital Master Ltd., the holder of the notes, agreed to defer the payments again to March 3.

On March 17, the company and Gottbetter Capital Master agreed to defer the payments again to April 3. This deferral also includes the January and February principal payments of $412,000, along with the March principal payment of $206,000, for a total of $993,000.

The company said it hopes to restructure the notes and is in negotiations with the investor to do so.

Vertical Branding, a consumer products company based in Encino, Calif., said it is trying to restructure the notes.

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