NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

Excellent excellent post lesnshawn ...

... especially for any who think NeoMedia isn't in default on several financing agreements with YA.

It's all in the filings, everything anyone needs to know about the situation NEOM is in and exactly what YA can do any time they want to.

From your link to that SEC filing:

"As of August 23, 2008, we were in default on our August 23, 2006 Convertible Debenture due to non-payment of principal and interest in accordance with the terms of the agreement. Due to cross-default provisions in the other financing arrangements, all nine instruments were considered in default as of August 23, 2008. The event of default caused YA Global to have certain material rights that did not exist prior to default. Specifically, the full face value of the instruments is callable and additional default remedies such as default interest and conversion price provisions went into effect.

On September 24, 2008, the Company entered into a Letter Agreement with YA Global which extended the maturity dates on the August 23, 2006 and the December 26, 2006 agreements to July 29, 2010; however, this agreement was executed subsequent to the event of default occurring. All nine Secured Convertible Debentures contain cross-default provisions related to debt obligations exceeding $100,000. Therefore, the event of default on the August 23, 2006 financing arrangement caused an event of default on the other eight agreements. The extension was considered a one-time extension for the specific period indicated but was not considered a waiver of existing events of default."