TORONTO--(BUSINESS WIRE)--Telehop Communications Inc. has completed its agreement with its debenture holders to effect a partial conversion into common shares, reduce the interest rate on the remaining balance and extend the final maturity date. The particulars of the restructuring are as follows:
1. That effective on Dec. 31, 2016, the interest rate on the debentures was reduced from 10 per cent per annum to 7.5 per cent per annum;
2. That the corporation be required to pay $150,000 of principal on the Dec. 31, 2018, and a further $300,000 principal on the Dec. 31, 2019, and the balance of the principal outstanding on the Dec. 31, 2020;
3. That any prepayment of principal other than as set out in the foregoing paragraph be accompanied by penalty payment of 2 per cent of the amount of principal prepaid;
4. That the repayment of the principal by the corporation be secured by a general security agreement on all of its assets, subject to postponement in favour of any prior general security agreement that may hereafter be issued by the corporation in favour of the corporation's institutional banker up to $500,000;
5. That 25 per cent of the principal amount of $3-million, excluding accrued interest, namely $750,000 was converted pro rata among all debenture holders into common shares of the corporation at a price of five cents per share, resulting in the issuance of 15 million common shares of the corporation; interest shall accrue on the converted portion of the debentures to the date of conversion and be paid at such time of conversion.
6. The common shares are subject to a 4 month hold period that expires on May 1st 2017.
About Telehop
Telehop has grown into one of the largest alternative telecommunications providers to both residential and business customers.
