APT MotoVox Group Inc. (MTVX)

[bullethole27]

Info on Lockbox

We have heard the word an awful lot from the company and posters here. I went in and pulled out the stipulations on the lockbox from the legal docs Dianne posted. Just wanted you guys to see how bad it was. It's some dense reading but to summarize it says every dime the company receives must go into a lockbox under the control of the creditor. 15% of every dime put into the lockbox automatically goes to the creditor toward any money outstanding on the loan. They must also hold in the lockbox a reserve amount equal to 20% of the outstanding loan at all times (I guess that's why APT had roughly 450k in Q1 since they had a 2.4M loan). Bottom line is just as they said APT was not in control of their cash flow. This creditor had them in a very difficult situation.

After seeing the terms of this deal and the IR deal I think that the replacement of the CFO is the best thing the company could have done. Most people will ignore the eventual appointment of the next CFO or not place much importance on it but I will be watching that one carefully. The right person can really help this company with so much potential out.