UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 2, 2008
EMTA HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Nevada | | 333-136583 | | 41-2145746 |
(State or other jurisdiction | | (Commission | | (I.R.S. Employer |
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7430 E. Butherus, Suite C, Scottsdale, AZ | | | 85260 |
(Address of principal executive offices) | | | (Zip Code) |
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| Registrant's telephone number, including area code: | | (480) 222-6222 |
Not Applicable
(Former name or former address, if changed since last report)
Copies to:
Michael K. Hair, Esq.
Michael K. Hair, P.C.
7407 E. Ironwood Court
Scottsdale, Arizona 85258
Phone: (480) 443-9657
Fax: (480) 443-1908
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Litigation Dismissal
We previously reported that EMTA Holdings, Inc. (the "Company") informed AJW Offshore, Ltd., AJW Qualified Partners, LLC, AJW Partners, LLC and New Millennium Capital Partners II, LLC (collectively, the "Investors") on August 23, 2007 that it was suspending its agreement because it believes that the Investors had violated the terms and conditions of the loan agreement and subsequently on September 11, the Company was notified by the Investors that the Company was in default in connection with its obligations under the Company’s 6% Callable Secured Convertible Notes, dated April 28, 2006, 6% Callable Secured Convertible Notes, dated August 17, 2006, and its 6% Callable Secured Convertible Notes, dated October 26, 2006, and its 6% Callable Secured Convertible Notes, dated November 10, 2006 (collectively, the “Notes”). In the default notice, the Investors allege that the Company has failed to honor its conversion obligations under the Notes regarding their conversion rights and has failed to retract its threat not to honor such rights.
On September 14, 2007 the Company received a Complaint filed by the Investors in the Supreme Court of the State of New York, County of New York (Index No. 60027/07) claiming that the Company has breached the contracts by not honoring notices of conversion of debt for shares of common stock of the Company.
The Notes in the aggregate principal amount of $3,000,000 had been issued to the Investors under the terms of securities purchase agreement dated April 28, 2006. As a result of the default notice, all payments due under the Notes are accelerated and the entire balance of the principal plus all accrued but unpaid interest under the Notes in the aggregate amount of $2,420,241 will be due immediately.
The Company filed to have the case remanded to the United Stated District Court, Southern District of New York (the “Court”) as Civil Case No. 07 Civ 8719 (PAC). The Company filed Counterclaims against the Investors.
On December 27, 2007, the parties executed and filed with the Court a stipulated and agreed dismissal of the Investors’ Complaint and the Company’s Counterclaims, all without prejudice. On January 2, 2008 the dismissals were entered by the Court. The resulting resolution is to prevent the Investors from accelerating, enforcing or collecting on the Notes.
| Item 9.01 | Financial Statements and Exhibits. |
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: January 11, 2008
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| | EMTA HOLDINGS, INC. |
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| | By: | /s/ Edmond L. Lonergan |
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| | | Edmond L. Lonergan |
| | | President - Chief Executive Officer |
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