I'm reading into this based upon the language of the 8K, but the argument of the company was that it was against the SEC regulation (law) to pay at the time the "default" notice was sent out, but it was in accordance with SEC regulation legal to pay it at the time it was paid. The company claims to have honored the agreement. Perhaps the early payoff required the SEC be notified. Perhaps the SEC had to approve the transaction. Perhaps the rules of trading are different on different exchanges, and the company needed to be in compliance therewith.
Its also possible that Camofi jumped the gun on filing the "default" notice. Maybe they filed at the end of business day but the payment was sent registered mail post-marked by midnight that day, exposing Camofi's inexperience of possibly even egregious intent! This may play into the legal Eagle's talons if Camofi tries to go on causing trouble in keeping this status unresolved.
Not only is our new CEO getting things done, he is showing extreme savvy. I smell big money guiding the actions. But I really like Myles. He's knocked another one out of the park tonight.
