Convergent defaults on financing agreement

Convergent Communications Services Inc., an Englewood, Colorado, service provider, was this week notified by Cisco Systems Inc. that the company is in default of a vendor financing agreement.

Convergent provides network, Web hosting and professional services to small businesses in 13 markets across the U.S. Convergent had also offered voice and PBX services, but sold that arm of its business earlier this year.

The default is the second piece of bad news to come Convergent's way recently. Last week, the company revealed that its stock was being delisted from the NASDAQ SmallCap index, because the company's capitalisation had fallen too low.

Neither Cisco nor Convergent released details about the amount of the financing agreement, or about what steps are being taken as a result of the default

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