ASX-listed services provider, Hyro (ASX: HYO), has reached an agreement with the liquidators of Lehmen Brothers to discharge its $20 million convertible note and associated interest obligations.
The deal includes the release of all fixed and floating charges over Hyro’s business. The settlement involved Hyro providing a cash payment of $1.2 million and the allocation of 107 million shares in Hyro – giving Lehmen Brothers a 17 per cent equity position.
Hyro CEO, Bill Votsaris, claimed in a statement the settlement would allow Hyro to undertake its plans for pursuing growth opportunities in the digital services market.
“By agreeing to move to an equity position, the administration of Lehman Brothers International (Europe) have given the company a significant cote of confidence. We are very happy to have Lehman Brothers on our Share register,” he said in the release.
In December last year, Hyro’s growth plans included it acquiring around $3 million in Government contracts from failing integrator, Commander.