Agent For The Holders of Gem River Corporation's 7 Percent Convertible Secured Notes Alleges That Events of Default Have Occured.GRAND RAPIDS Grand Rapids, city (1990 pop. 189,126), seat of Kent co., SW central Mich., on the Grand River; inc. 1850. The second largest city in the state, it is a distribution, wholesale, and industrial center for an area that yields fruit, dairy products, farm produce, , Mich.--(BUSINESS WIRE)--July 17, 1998-- Gem River (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :GR.) Gem River Corporation (GR.ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. ) has been notified by the agent for the holders of certain 7 percent convertible secured notes issued by the company (the "Notes") that, in its opinion, certain events of default have occurred and are continuing under the Notes. The Notes have an aggregate face value of US $1 million and are due September 30, 1998. The holders of the Notes and their advisors have also alleged that the company's imminent plans to: 1) issue US $500,000 in First Mortgage Units secured by its unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. Montana real estate; and 2) enter into a proposed sapphire marketing joint venture and consulting agreement with a significant New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. based industry participant, will result in additional events of default under the Notes. These new management initiatives are intended to address two of Gem River's most pressing priorities: 1) provide working capital to permit the company time to restructure its affairs and pursue new opportunities; and 2) implement the company's new marketing plan and improve sapphire sales. Gem River is not presently in a position to repay the Notes if a lawful Licit; legally warranted or authorized. The terms lawful and legal differ in that the former contemplates the substance of law, whereas the latter alludes to the form of law. A lawful act is authorized, sanctioned, or not forbidden by law. demand is made by holders of the Notes prior to the September 30, 1998 due date. The company has an additional US $1.9 million dollars in unsecured convertible debt outstanding $400,000 of which is due September 30, 1998 and US $1.5 of which is not due until October 31, 2000. Although Gem River denies the existence of the alleged events of default it is cooperating with the holders of the Notes and their advisors in an effort to resolve the present situation on mutually acceptable terms. The Alberta Stock Exchange has neither approved nor disapproved the contents of this press release. CONTACT: Gem River Corporation Allan Dolan, 616/285-0310 |
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