Whether it involves family budgets, or maintaining the soundness of a company, eliminating or eradicating debt is always an enjoyable enterprise.
Thursday, that pleasure belonged to West Palm Beach-based Alliance BioEnergy Plus, Inc. (OTC:ALLMQ), as it settled the final $458,759 of disputed toxic debt creditor claims for $100,000 to be paid out of 5% of future revenue, with no interest and no possibility of converting into equity.
With the settlement of these claims, Alliance has settled a total of nearly $900,000 of disputed toxic debt plus interest for a future payment of $100,000, which is only to be paid when the company begins recognizing revenue.
Importantly, by eliminating the conversion feature in this debt, Alliance is also freed of the potential dilutive impact of any conversion. The original debt will no longer be reflected on the Company’s balance sheet.
Alliance is continuing to renegotiate other liabilities as a part of the Chapter 11 Bankruptcy process, and hopes to report more news in the near future.
Investors warmed to the news, driving up the company’s shares1.2 cents, or 62%, to 3.2 cents, on volume of 726,000 shares.
