HOUSTON - Tidel Technologies Inc. faces an August 6 deadline to pay Montrose Investments Ltd. $15 million in principal. In a Tidel news release, the ATM manufacturer acknowledged that it doesn't have the funds available to pay the debt, but that it is attempting to arrange financing.
Tidel also announced that Liberty Acorn Trust, which holds an additional $3 million in principal in the form of Convertible Debentures, has extended its "put date" on that debt from June 26 to July 10. Montrose exercised its "put right" on the $15 million after Tidel said, on May 4, it would prepay the entire amount owed if Montrose acted.
On June 6, Montrose extended its first "put date" from June 5 to June 26 to allow for continued discussions of modifications of the terms on the debentures.
Earlier this month, Tidel released a statement warning of lower earnings in the quarter ending June 30 due to the bankruptcy of Credit Card Center, the troubled Philadelphia-based ISO that had been Tidel's largest customer. Tidel claims it is owed $27 million by CCC, which filed for bankruptcy June 6.
While Tidel is continuing to work on financial arrangements, the company said in the news release it could offer no assurance that it will have the funds needed by the deadline.
