VuBotics in default on senior secured convertible notes

By Devika Patel

Knoxville, Tenn., June 12 - VuBotics, Inc. received a notice of default and demand for immediate payment from Jay Weil, the collateral agent for the senior secured convertible notes the company sold in August 2007.

The notice states that an event of default has occurred as a result of the company's failure to pay the outstanding $1.74 million principal amount due plus interest on the notes' maturity date.

As a result of the default, the filing said, Weil may take possession of substantially all of the company's assets and may begin selling the assets.

The company said in the filing it is in negotiations with the investors and the agent in order to avoid the foreclosure of its assets. However, it cannot guarantee that the negotiations will be successful in avoiding foreclosure.

Atlanta-based VuBotics develops software used for providing text for online, small screen and broadcast applications.

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