c. As of July 31, 2007 Plasticon has overdrawn its primary bank account by $18,712.28;
d. Plasticon has borrowed money post-petition without authorization of the court. The cash receipts log provided by Plasticon reveals that $102,332.90 has been loaned to the Debtor by James Turek and LexReal Co., LLC;
e. Many of the LexReal loans (Exhibit 7) contain oppressive terms that cannot be justified by any valid business purpose. The loans are all convertible into Plasticon common stock at a rate of $0.0001 per share. In addition to carrying a 10% interest rate, many of the notes require an upfront closing fee of 100% of the loan amount payable in Plasticon common stock again using a rate of $0.0001 per share. Some of the notes even contain a default interest rate of 20% daily.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on September 14, 2007.
/s/ John Todd Wright
John Todd Wright
Bankruptcy Analyst
100 E. Vine St., Suite 500
Lexington, KY 40507
(859) 233-2822
Doc 215
09/14/2007 215 Affidavit of John Todd Wright, filed by U.S. Trustee (RE: related document(s)156 Motion to Appoint Trustee,, filed by U.S. Trustee U.S. Trustee). (Daugherty, John) (Entered: 09/14/2007) |
