Legal Question in Business Law in Nevada
company I invested refuse to pay back after note maturity
In Dec 2006, I invested $30k in a callable convertible note of a small company (a Nevada corp), due to mature in Dec 2007. At maturity date, I have the option to convert the note into company stock. Otherwise, the company should pay back my money with interest.
During 2007, the company went public on pink sheet list. But the stock price was very low in Dec 2007. I actually bought some stocks of this company at the lower price.
When the company asked me to convert after maturity date, I replied in email saying that I want to defer the decision for a month or so.
Then around May this year, I emailed twice and also sent a certified letter declining the conversion and demand to have my money back with interest. The company responded with a letter saying the they cannot pay me back at that time.
Recently, I have talked over the phone with the CEO several times. He just ask me to wait one more month, and said the situation will become better. But he refused to promise me a pay back schedule.
Most of the investors with same note did convert into the company stock. Only several people did not convert. Also the company should have enough money to pay back my money right now. But the situation could get worse.
What should i do now?
1 Answer from Attorneys
Re: company I invested refuse to pay back after note maturity
You have several options, including waiting even longer to get paid, accelerating your collection communications to include daily phone calls and letters demanding payment, hiring a commercial collection agency for a fee or hiring a lawyer for a fee to review your formal litigation alternatives and pursue any you are comfortable with, bearing in mind the possibility of the company's insolvency or bankruptcy.
Your attorney can explain further, including providing advice concerning time limits and procedure.
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