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Pastimes : Plastics to Oil - Pyrolysis and Secret Catalysts and Alterna -- Ignore unavailable to you. Want to Upgrade?

To: dreaminbig who wrote (6598)	4/22/2011 9:45:04 AM
From: OverDraught	Respond to of 53574

Dramingbig, the lien against the assets by itself does not restrict the borrower from using the assets in the normal course of business. Basically, the lien establishes the lien holder's claim against the assets and the priority of his claim. The restrictions, if any, are in the loan agreement. In JBI's case, neither the covenants nor the remedies (in event of default) are disclosed in the 10k, so we have no way of knowing how the loan agreement affects the company's operations. The devil's in the details...

To: dreaminbig who wrote (6598)	4/25/2011 10:19:30 AM
From: SteveF	Respond to of 53574

"On December 1, 2010 the Company entered into a secured short-term loan agreement with an existing shareholder. The loan was used for working capital purposes and bears interest at an annual rate of 6%. The entire principal of the loan together with all accrued interest is due and payable on December 1, 2011. The loan is secured against the receivables and assets of PAK-IT. $100,781" How did they use Pak-It's assets as collateral on Dec 1, 2010 when Pak-It's assets were already used as collateral for an outstanding loan from Feb 2009? floridaucc.com Here's another outstanding UCC for Pak-It (blanket lien on everything Pak-It): floridaucc.com