TheDirectory.com, Inc. (SEEK)

[Milesblue42]

***RED FLAG???-SEEK'S TCA GLOBAL LOAN IS-IN-DEFAULT***


Sir, there is some critical missing information about the state of SEEK's TCA Global loan :(

On October 1, 2013 we obtained $1.3 million in cash from TCA under a new $5 Million credit facility. In September of 2014, we restructured our agreement with TCA under new terms that envisioned TCA converting debt payments into shares of our common stock at a discount rate much lower than we could obtain elsewhere. Since the restructuring in September of 2014, our share price has declined and TCA has notified us that they do not plan to convert the debt payments into shares under the discount rate (15%) described in our agreement and will require us to make monthly cash payments.
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And now for rest from Page 9....uh why was this part left out? Huh? The part highlighted in red was left out....isn't this very important information?

We are in default of the terms of our credit facility with TCA



On October 1, 2013 we obtained $1.3 million in cash from TCA under a new $5 Million credit facility. In September of 2014, we restructured our agreement with TCA under new terms that envisioned TCA converting debt payments into shares of our common stock at a discount rate much lower than we could obtain elsewhere. Since the restructuring in September of 2014, our share price has declined and TCA has notified us that they do not plan to convert the debt payments into shares under the discount rate (15%) described in our agreement and will require us to make monthly cash payments. We are behind on the cash payments to TCA and are therefore in technical default on the notes. We are actively working to resolve the situation with TCA as soon as possible, however, there can be no guarantee of the outcome at this time. The credit facility is secured by our tangible and intangible assets. If TCA were unable to collect the balance on the facility from us, it could repossess the collateral used to secure the facility. This could materially affect our operations and financial results.