Baron Capital Enterprise Inc (BCAP)

[mdimport]

RIGH Annual Financial Report for the periods 2013 + 2013 was released on May 15, 2014.

See the following segment below. The old RIGH claim of the O/S and A/S max out has now changed very significantly.

Despite the talk about "disputes the validity of the alleged obligations", the reality is 8B of the 30B O/S on RIGH's balance sheet has now formally been set aside as an "allowance for the disputed obligation."

RIGH is going to settle because the wording of their financials tells me they don't want to go through the bankruptcy process.

"...Note 6. Commitments and Contingencies

Contingencies:
In 2009 through 2011 the Company entered into a series of promissory notes with Baron Capital Enterprise, Inc. The Company disputes the validity of the alleged obligations and claims damages against Baron Capital Enterprise, Inc. for, among other matters, material breach of contract. The Company’s balance sheet reflects both the Company’s contingent claim as well as an allowance for the disputed obligation...."

https://www.otciq.com/otciq/ajax/showFinancialReportById.pdf?id=120871

RIGH's counter claim for material breach of contract isn't going to hold water in a law court. RIGH simply failed to honor their side (the repayment terms), despite writeoffs, restructuring of the debt and repeated requests from the debt holder:

"...As for the investments of Baron: RIGH – In 2012 Baron negotiated with RIGH to restructure its Notes which included writing off debt, eliminating accrued interest, and restructuring its remaining Notes to assist RIGH in seeking funding to move forward. The revised Notes called for RIGH to convert the remaining debt upon receiving a conversion notice from Baron. RIGH has refused to honor their agreement and convert any of the notices sent to them and their President Angel Stanz has ceased all communications with Baron. Baron has a Note executed by RIGH for the purchase of 800,000 shares of Preferred stock Baron sold to RIGH in October of 2011 which paved the way for the BG Medical transaction to be completed. Baron intends on seeking the return of its 800,000 shares of Preferred since they have not been paid for and will seek to have all the debt eliminated restored. The last issuance of shares for any debt owed to Baron was in 2012 totaling 750,000,000 free trading shares and all the shares had been sold in 2012...."

http://www.baroncapitalenterprise.com/