Legal Question in Business Law in Colorado

I have a large convertible note that had an event of default. The lender threatened to sue and we settled on an agreed upon judgment that was executed in Federal District Court and governed by Colorado law and evidenced by a Temporary Non-Execution and Forebearance Agreement.

1. The judgment specifically addresses a monthly payment schedule of interest with a baloon payment due on a specific date.

2. It specifically addresses the treatment of stock of an unrelated entity that was pledged by the principals as collateral as well as their personal guarantees.

3. It states that any conflict in remedies between the original loan documents and stock pledge agreements with the Temporary Non-Execution and Forebearance Agreement that the TNEFA will supercede any documents.

4. It does NOT reserve the conversion rights in any way shape or form.

The question is, did they give up their right to conversion with the pursuit and signing of the agreed upon judgment?


Asked on 10/25/11, 3:46 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

It is impossible to answer this question with any authority without review of the agreement, the note, and all other related documents and instruments.

This is a forbearance agreement so that may mean that the underlying conversion rights still apply. This is different from a final judgment.

Contact an attorney to review the documents.

This answer is for informational purposes only and is not legal advice regarding your question. This answer does not establish an attorney-client relationship.

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Answered on 10/28/11, 6:26 am


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