Alentus Corporation Completes Substantial Debt Restructuring
Alentus Corporation (PINKSHEETS: ALNS), a web hosting, domain registrar, dedicated server, colocation, and E-Commerce hosting provider today announced the restructuring of most of its outstanding debt. Alentus is pleased to announce that it has reached restructuring agreements with nearly all of its outstanding debt holders. These agreements will substantially reduce the total amount of interest payments required to service current debt, from over $220,000 per quarter to less than $50,000. The reduction was accomplished through a combination of lower interest rates (now typically four percent) and conversion of a portion of the debt into non-dividend, non-interest bearing convertible preferred equity. The converting debt holder parties agreed to a six cent ($0.06) per share valuation for the newly issued preferred stock. In addition, the restructured debt will have a long term payback period (typically two years interest only, followed by a five year amortization), and is convertible into common stock at prices ranging from seven ($0.07) to nine cents ($0.09) per share. Alentus Chairman and CEO William King stated, "This is a very substantial milestone for our company and its investors. The long and difficult process has now come to a successful closure. The strength of our core business provided the staying power we needed to make it through the process despite the recent global recession and financial crisis. We believe these restructuring actions will have immediate benefit to all Alentus investors including common stock holders. More details of the restructuring and its impact on our balance sheet and shareholder equity will be contained in our upcoming 3Q2010 financials; we expect those will be filed before the standard deadline." King also added, "This process has consumed a significant amount of time of our senior management team and now that it has been successfully completed we are excited about the prospects of applying that time and energy to aggressively growing the business through new product launches and new customer acquisitions."
About Alentus Corporation (www.alentuscorporation.com , US Stock Ticker: ALNS)
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