Investor delays stake in Debt Resolve
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- June
- 24
Debt Resolve Inc. of White Plains said it’s prepared to hold a potential investor to an agreement to buy $7 million in the company’s stock after the investor said it needs more time to complete the deal.
Harmonie International LLC reconfirmed its intent to buy the stake in Debt Resolve under a deal dated March 31, Debt Resolve said. A date for concluding the deal was not announced.
“While Harmonie has reconfirmed, they have offered no real specific proof of their ability to perform, and, accordingly, we cannot continue to grant formal extensions,†Debt Resolve Chief Executive Officer Ken Montgomery said in a statement. “We hope they will fund in a short period of time but we must will protect our company, which includes an action for specific performance and damages if they do not.â€
Debt Resolve runs an online consumer debt settlement service. Its stock closed at $1.09 a share, down 23 cents.
The company said Harmonie CEO William Donahue sent them a letter dated Monday that said, in part, “Even though the economic climate has greatly affected our ability to rely on the primary institutions that generate our investment revenue, we believe the alternative sources meticulously put together will allow Harmonie to continue its investment†in Debt Resolve.
This entry was posted
on Tuesday, June 24th, 2008 at 4:59 pm by Jerry Gleeson.
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