According to a U.S. Securities and Exchange Commission filing, House of Taylor Jewelry has received a notice of default on a $3.95 million loan from its senior lender, New Stream Secured Capital.
According to reported excerpts from a letter written by New Stream Capital, which entered a loan agreement with House of Taylor in October 2007, the jewelry manufacturer failed to meet its minimum financial obligations for the periods ending on Dec. 31, 2007, and March 31, 2008.National Jeweler reports that the letter stated: "While we have previously supported and continued to support the borrower's attempts to liquidate its inventory in order to repay the lender, the sending of this letter should not be construed to limit the right of lender to act without further notice to borrower in accordance with the terms of the loan agreement and the other financing agreements and applicable law." House of Taylor's common stock was delisted from the Nasdaq Stock Market Inc. from April 24 due to its failure to pay the listing fees and its delayed filing of its annual report.
