Devcon, investor settle
BOCA RATON, Fla.--A major Devcon investor, who objected to a March debt restructuring agreement, has dropped a lawsuit and settled with the regional alarm company based here, according to an Aug. 16 SEC filing.
The investor was the only one of three investors who did not favor conditions of a forbearance agreement with investors to restructure the company's debt (search "Devcon deconstructs" at www.securitysystemsnews.com). In early April, that investor transmitted a notice of redemption for Devcon stock with a face value of $7 million, which represents roughly one-third of the company's current market cap.
The company had maintained that the investor did not have a case because the majority of the three investors did favor the forbearance agreement.
Under the Aug. 17 agreement, the investor will be paid $7.1 million, plus accrued interest, and will return all shares of the company's Series A Convertible Preferred Stock to the company.
Robert Farenhem, Devcon president, confirmed to Security Systems News the terms of the settlement.