GTC drops $20 million equity line with Bluefire Capital

By Sheri Kasprzak

Atlanta, Dec. 17 - GTC Telecom Corp. said Friday it has terminated its $20 million equity line with Bluefire Capital Inc.

The agreement was finalized in September 2001, and the terms called for the company to sell shares to Bluefire in exchange for the ability to draw on the $20 million line for three years.

To date, the company has not used the equity line.

In order to cancel the agreement without penalty, GTC must make a minimum payment of $10,000 by Jan. 17, 2005. Bluefire will waive the liquidation damages of $250,000, if the $10,000 is paid. If Bluefire had not waived the liquidated damages, GTC would have had to draw at least $500,000 by Jan. 23, 2005 or else pay the $250,000 in damages.

Based in Costa Mesa, Calif., GTC is a telecommunications, internet and business process outsourcing provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.