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Quotes & Info
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| MOBL.OB > SEC Filings for MOBL.OB > Form 8-K on 11-Jun-2009 | All Recent SEC Filings |
11-Jun-2009
Other Events
As previously disclosed, on May 5, 2009, the Registrant ("Mobilepro") executed a Forbearance Agreement with YA Global Investments, L.P. f/k/a Cornell Capital Partners, L.P. ("YA Global") pursuant to which YA Global agreed to forbear for a period of thirty days (the "Forbearance Period") from enforcing its rights and remedies against the Registrant and its subsidiaries under the Secured Convertible Debenture and related agreements dated June 30, 2008 in the original principal amount of $13,391,175 (the "Debenture"). By letter dated June 2, 2009 (the "June 2nd Letter"), YA Global agreed to extend the Forbearance Period until June 5, 2009 (the "Extended Forbearance Period"). The maturity date of the Debenture was May 1, 2009 (the "Maturity Date") at which time the principal amount outstanding was approximately $13 million.
The Extended Forbearance Period has expired and YA Global has not agreed to further extend the Forbearance Period and the Maturity Date. Accordingly, Mobilepro is in default of its obligations under the Debenture. Mobilepro does not have the cash required to pay the balance due on the Debenture and, given current market conditions and Mobilepro's financial condition, obtaining the required financing to retire the Debenture is unlikely to occur in the immediate future. YA Global has informed the Registrant that it intends to exercise its rights as the company's senior secured creditor. Such rights include, but are not limited to, foreclosing on the assets of the Company. In such event the Registrant will not have the ability to continue as a going concern. See "Risk Factors" in Mobilepro's most recent quarterly report on Form 10-Q for more detail on such risks.
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