Hydrogen Power fails to make payment under forbearance agreement

By Laura Lutz

Chicago, Oct. 19 - Hydrogen Power, Inc. did not satisfy the conditions of an Aug. 21 forbearance agreement relating to convertible promissory notes issued in March 2004, according to an 8-K filing with the Securities and Exchange Commission.

Hydrogen Power failed to make a final payment of $646,981.66 by Oct. 15 that was required by the agreement.

Holders Pandora Select Partners LP and Whitebox Hedged High Yield Partners, LP had agreed to forebear from collecting $946,981.66 owed to them under the notes, in exchange for certain concessions, including the final payment.

Following Hydrogen Power's failure to make the payment, the holders have the right to collect on the amount owed. The company is trying to negotiate an extension of the forbearance agreement, according to the 8-K.

The default was originally triggered because Hydrogen Power missed a required payment of about $149,000 in August and was not in compliance with a requirement to maintain cash balances of 140% of the outstanding principal amount, according to an 8-K filed on Aug. 10.

The company received a default notice from Pandora and Whitebox on Aug. 6.

Seattle-based Hydrogen Power makes technology for producing hydrogen.

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