The U.S. oil and gas company JMG Exploration, Inc. announced that Newco Group Ltd., incorporated under the laws of the British Virgin Islands, has failed to repay a US$3mln loan and accrued interest and fees that was due in July 2008. As a consequence of this, JMG issued a formal notice of default on July 22.
The BVI company is given 15 days to transfer the shares of Iris Computers Ltd, which collaterized this loan into the name of JMG, unless an alternative settlement arrangement is consummated by August 1, 2008, or a default is cured prior to that date.
The Nevada-registered JMG Exploration, Inc. reported the termination of the share exchange with BVI-registered Newco Group Ltd. already in February this year. Later on, JMG Exploration updated status of defaulted loan to the BVI company.