Plus   Neg

eLandia modifies credit deal with Stanford International Bank - quick facts

eLandia International Inc. (ELAN.OB) said that it has restructured its capital structure after modifying its credit agreement with Stanford International Bank Ltd.

As a result of the modification, eLandia will eliminate a majority of its long-term debt, while at the same time reducing the total number of its fully diluted shares outstanding.

Under the modified credit agreement, eLandia has terminated SIBL's obligation to lend to eLandia the $28 million balance of the amount committed and in exchange, SIBL has surrendered for cancellation 16.15 million shares of eLandia common stock.

In addition, SIBL has converted the total principal amount outstanding under the loan of $12 million into 1.78 million shares of eLandia's series B convertible preferred stock and agreed to exchange $2.35 million of outstanding principal owed by a subsidiary of eLandia under separate agreement for 344,444 shares of series B convertible preferred stock.

As a result of the modification, eLandia has reduced its common stock outstanding from 40.9 million shares to 24.8 million shares.

For comments and feedback contact: editorial@rttnews.com

Follow RTT