Air Water International (fka AWTI)

[jonesieatl]

8-K out for AWTI ..... ugly.

A default leading to a demand notice for the full amount owed.

http://www.sec.gov/Archives/edgar/data/1098207/000135448808000640/airwater8k.htm

This is the first time I've run across AWTI , and it's the first time I've seen this phrase "Montgomery Equity Partners, Ltd., through its representative Yorkville Advisors".

However I do have Montgomery Equity Partners listed as a Yorkville affiliate in the iBox here #board-9964 .

"Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On March 26, 2008, the Registrant received a Notice of Default from Montgomery Equity Partners, Ltd., a holder of Secured Convertible Promissory Notes of the Registrant. Such notes are dated February 27, 2006 and October 16, 2006 and bear an interest rate of 9%. Pursuant to the terms of default, the notes bear a default interest rate of 15%. The Notice of Default sites failure to make payment of the Notes on the maturity date and failure of the Registrant to be quoted or listed on the OTC Bulletin Board or any other Principal Market. Montgomery Equity Partners, Ltd. has made demand for the full amount of the Notes, together with any accrued interest and other amounts due and owing. The total outstanding principal on the Notes is $1,445,784. Accrued interest and other amounts is estimated at $200,000. Subsequent to the Notice of Default, Montgomery Equity Partners, Ltd., through its representative Yorkville Advisors, has indicated a willingness to discuss “forbearance” and negotiations are continuing for an amicable resolution of these matters. However, there can be no assurances that the discussions will be successful."