Emisphere Technologies, Inc. (EMIS) Announces Default on Approximately $31.1 Million Notes Due to MHR Fund Management LLC and Its Affiliated Funds; MHR Has Not Demanded Payment; the Company and MHR Continue Discussions
9/27/2012 10:10:27 AM
CEDAR KNOLLS, N.J., September 26, 2012 (GLOBE NEWSWIRE) -- Emisphere Technologies, Inc. (OTCBB:EMIS) (the "Company") announced today that, as of September 27, 2012, the Company will be in default under the terms of the Company's 11% Senior Secured Convertible Notes (the "Senior Secured Convertible Notes") issued to MHR Fund Management LLC (together with its affiliated funds, "MHR"). Additionally, as of September 27, 2012, the Company will be in default under the terms of certain non-interest bearing promissory notes issued to MHR on June 8, 2010 (the "MHR 2010 Promissory Notes"). These defaults occurred, and are continuing, as a result of the Company's failure to pay to MHR approximately $30.5 million in principal and interest due and payable on September 26, 2012 under the terms of the Senior Secured Convertible Notes, and the Company's failure to pay to MHR $600,000 in principal due and payable on September 26, 2012 under the terms of the MHR 2010 Promissory Notes.