Imperial Petroleum Recovery Corp.(fka IRECQ)

[jaxstraw]

The 25k unsecured loan was not DIP funding.

DIP Funding is to run the entire company operations during CH 11.

They borrowed the 25k to exclusively prepare the filings according to the application to the court. They plan on paying it back by issuing shares to the lender post emergence.

From the application on 9/13.....

8. Debtor is in need of approximately $25,000.00 to complete its 10-K filings with the SEC.
Although Debtor is currently negotiating with several companies to license its MST technology and/or
to sell one or more MST units, Debtor has not signed any contracts and does not now have sufficient
cash or revenue to pay its auditors to prepare the necessary SEC filings.

9. Therefore, pursuant to 11 U.S.C. Sec. 364(b), Debtor seeks Court approval to borrow
$25,000 from Steve Bowen. The proposed loan is unsecured and would pay the lender interest at the
rate of 6% per annum. Additionally, the note is convertible and may be converted by the holder to
common shares of IPRC upon the confirmation of Debtor's plan of reorganization. If not converted,
principal and interest would be due in 18 months.


This is from a filing 13 days earlier asking for an extension to file the current 10K.....

7. Debtor requests an extension of the deadline to file its 2012 10-K and 10-Q Disclosures because of the cost and expense involved.
Debtor’s SEC attorneys, Brewer & Pritchard, P.C., will charge approximately $10,000 to review and comment on the fiscal year 2012 10-K and 10-Qs.
See Exhibit 1.
Debtor’s auditors, LBB & Associates Ltd., LLP, will audit the Debtor’s financials for $9,000 and $3,000 for each quarterly review, of which there are three.
Exhibit 2.
The total cost for the auditors will be
approximately $18,000.
Finally, Debtor’s CPA, Ron Kuhns, will charge approximately $7,500 for his work.
The total approximate cost will be about $35,500.
Additional costs will be incurred for FY 2013.

8. Debtor is working on securing contracts and customers, and is working on raising money for capital needs including, but not limited to, preparing and filing its 10-K and 10-Q Disclosures. At this time, however, sufficient funds are not available.

9. There will be no harm or prejudice to the Debtor or the estate or its creditors if the deadline is extended until December 31, 2013. Debtor believes that it will have the funding needed by
then and that such an extension is in the best interest of the estate and its creditors.