Western Power gets deferral on redemption, interest payments on $30 million convertible debt facility

By Sheri Kasprzak

New York, April 23 - Western Power & Equipment Corp. received a waiver on monetary defaults related to its $30 million convertible debt facility and got a deferral on two redemption payments and one interest payment.

For the agreement, Western Power agreed to make cash payments to the lender and to transfer the lenders a total of 10% of the class A membership interests of subsidiary Arizona Materials, LLC.

The company also agreed to issue additional debentures to the lenders equal to 10% of the outstanding principal amount currently held.

The maturity date of the facility was also changed to Dec. 31, 2007 from June 7, 2010.

The facility was issue in June 2005 and bears interest at Libor plus 600 basis points. The facility is convertible at $2.00 each.

Based in Vancouver, Wash., Western Power is a construction equipment dealer. The stock closed unmoved on Monday at $0.60 (OTCBB: WPEC).

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