Looks like UVSE might move...WOW these guys are lucky "Universal Energy Corp. Reaches Successful Settlement Agreement in Lawsuit"
HOUSTON, TX--(Marketwire - 01/19/10) - "We have persevered through a difficult time at Universal Energy Corp. (Pinksheets:UVSE - News), and management is fully committed to bringing it all the way back," commented Billy Raley, Chief Executive Officer of Universal Energy Corp.
On September 1, 2009, Universal Energy Corp. (the "Company") was served with a verified complaint by Roswell Capital Partners, LLC, as Collateral Agent for BridgePointe Master Fund Ltd. ("BridgePointe"). The complaint, which was filed in the United States District Court for the Southern District of New York, related to the investment BridgePointe made during 2007 in convertible debentures of the Company (the "Debentures"). The Debentures were secured by certain assets of the Company and its subsidiaries. In the lawsuit, BridgePointe alleged certain events of default by the Company including failure to pay the "Monthly Redemption Amounts" when due during 2009 and the failure to authorize and reserve a sufficient number of shares of common stock as required by the debenture agreements.
Terms of the Settlement
The key terms reached by the parties were to pay 55 percent of the principal balance plus interest. The agreement allows the Company to purchase its debentures with two equal cash payments. The first payment is due no later than May 1, 2010, and the second is due no later than June 1, 2010. Additionally, 10 percent of the previously outstanding principal and interest balance was paid in common stock.
Raley concluded, "Management has set the tone for 2010. All of the Company's convertible debentures have been retired and that's a big step in the right direction. With this lawsuit behind us, we can accurately complete our quarterly filings and resume growing this Company."
Universal Energy Corp. is a publicly traded (Pinksheets:UVSE - News) energy company engaged in the acquisition and development of crude oil and natural gas leases in the United States. We pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise. Our prospect areas consist of lands in Louisiana and Texas. Visit www.universalenergycorp.info for more details.
