Oasys Mobile defaults on $8M debt

Premium mobile content provider Oasys Mobile has defaulted on $8 million in senior secured debt, according to a filing Friday with the U.S. Securities and Exchange Commission. Oasys is unable to repay the $8 million principal and corresponding interest on debentures due June 30. The company now is in talks with lenders Liberty Associated Partners and Rock Hill Investment Management to explore alternate repayment options. As of March 31, Oasys had $773,200 cash on hand and a $7.4 million working-capital deficit, suffering losses of $2.3 million in Q1.

In April, Oasys Mobile announced it engaged investment banker RBC Daniels & Associates to explore strategic options including a possible sale of the business. At the time, Oasys officials admitted they did not expect to raise enough revenue to repay the company's debts by the June 30 deadline.

Oasys also announced last week the resignations of board members Hughes Capital founder J. Winder Hughes (who as of March 31 owned 6.7 percent of the firm) and Solstice president Stephen Finn. Both came to Oasys (then operating under the Summus aegis) as part of a venture financing agreement that awarded Hughes a pair of board nominations. 

For more on the Oasys default:
- read this Triangle Business Journal article

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