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: February 12, 2008
(Date
of
earliest event reported)
VoIP,
Inc.
(Exact
name of Company as specified in its charter)
Texas
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000-28985
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75-2785941
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(State
or Other Jurisdiction)
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(Commission
File Number)
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(I.R.S.
Employer Identification)
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of
Incorporation)
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151
So. Wymore Rd., Suite 3000, Altamonte Springs, Florida 32714
(Address of principal executive offices) (Zip Code)
Registrant's
telephone number, including area code:
(407)
389-3232
N/A
(Former
name or former address, if changed since last report)
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Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
40.13e-4(c))
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As
previously disclosed in Part I, Item 1 of the VoIP, Inc. (the “Company”) Form
10-Q for the quarter ended September 30, 2007, the Company as of September
30,
2007 owed the sum of $1,905,000 MCI WorldCom Network Services, Inc. d/b/a UUNET
(now Verizon Business Network Services, Inc.) ("MCI") under the terms of a
settlement agreement (the “Settlement Agreement”) executed by the parties on May
17, 2007. The terms of the Settlement Agreement include the following
provisions:
1.
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Beginning
May 2007, two of the Company’s wholly-owned subsidiaries will pay a total
of $2.2 million (the “Payments”) to MCI in monthly installments through
November, 2009;
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2.
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The
Company issued a guarantee of Payments under the Settlement Agreement,
secured by all of the Company's assets;
and
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3.
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The
Company is contingently liable to MCI for $8.0 million (less amounts
paid
by the Company under #1 above), in the event of their default under
the
Settlement Agreement that is not cured pursuant to its
terms.
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The
Company failed to make a payment due
February
1, 2008 under the Settlement Agreement, and was declared in default by MCI
as of
February 12, 2008, and while settlement discussions have been initiated, which
may result in a waiver of the default, the default has not been cured. Under
the
Settlement Agreement, MCI may seek to exercise default remedies provided by
the
Settlement Agreement, which may include seeking to enforce and collect the
$8
million contingent liability referred to in item #3 above, less $630,000 paid
by
the Company to date under the Settlement Agreement, and initiating related
foreclosure proceedings based on MCI's security interest in all of the Company's
assets. Such actions if pursued by MCI and permitted by the Agreement would
have
a material and negative impact on the Company's financial condition, and would
impair the Company’s ability to continue its business.
SIGNATURES
Pursuant
to the requirement of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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VoIP,
INC.
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Date:
February 22, 2008
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By:
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/s/
Anthony Cataldo
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Anthony
Cataldo
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Chief Executive
Officer
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