What do you guys think of the Senior Secured Convertible Notes maturity date October 31, 2010
Senior Secured Convertible Notes
The Amended and Restated Senior Secured Convertible Notes have an aggregate principal amount of $48,776,572 and the New Senior Secured Convertible Note has an aggregate principal amount of $5,000,000. The Amended and Restated Senior Secured Convertible Notes and the New Senior Secured Convertible Note are hereinafter referred to collectively as the Notes. The Notes are convertible into shares of the Company’s common stock at an initial conversion price of $0.65 per share, subject to anti-dilution adjustments. The principal amount of the Amended and Restated Senior Secured Convertible Notes includes the aggregate principal amount of $32,350,000 of the Original Notes, as well as interest and penalties that accrued under the Original Notes. The Notes have a maturity date of October 31, 2010, subject to the right of the holders to extend the date (i) if an event of default has occurred and is continuing on the maturity date, (ii) in the event of a change in control of the Company, through the date that is ten (10) business days after the change in control if the change in control is announced prior to the maturity date or (iii) if the holder in its discretion chooses to extend the maturity date to a date that is not later than October 31, 2012. The Company’s obligations under the Notes are secured by a security interest in substantially all of the assets of the Company and its wholly-owned subsidiary, Barnico Drilling, Inc. (“Barnico”).
