It's a bit murky but what is clear is that Cronin just pocketed $500,000 and holds a first lien position over fsnr that can be called the moment (30 day Cure Period) fsnr misses a payment. fsnr has one year to be up and running and to pay $122,000 and then $35,000/ month thereafter. What if things get delayed in Ennis and between Dynamis and the weather they're delayed? And doesn't it bother you at all that fsnr overpayed by so much for CTR?? Very fishy smell starting to surround this thing. Answers to follow in due course.
1.9 Seller Remedies . If a Default Event listed in Section 1.8(b) – (e) occurs Seller must notify Buyer and allow Buyer thirty (30) days to cure the Default Event (“ Cure Period ”). If the Default Event is not cured within the Cure Period or the Default Event in Section 1.8(a) occurs then Buyer is in Default and Seller may at its sole option exercise any or all of the following remedies:
(a) Seller will have the right, at its sole discretion, to request, in writing, that the Designated Agent deliver the CTR Shares to the custody of the Seller and pursue at Seller’s option any and all deficiency that might result only after the Cure Period has expired or the Default Event in Section 1.8(a) has occurred. Seller must notify Buyer of Seller’s request for the delivery of the CTR Shares. Seller must provide proof of certified mailing of Buyer’s notice of Default to the Designated Agent at the time of the request.
(b) Seller understands alterations to the property will be necessary for the implementation of the business plan referenced in Section 2.0(j) . Seller and Buyer agree to discuss all improvements to the property and mutually agree upon any CTR properties or facilities that will need to be returned to the original condition at the time of the closing of this purchase. As Buyer is required to notify Seller of changes to the property in Section 1.8(c)-(d) , if Seller does not state an objection to the improvement within fifteen (15) days of notice, then that improvement will not be required to be reverted to the original condition in the event of Default. Buyer will have sixty (60) days to revert the property to the original condition in the event of Default. If the CTR property and facilities are not returned to the original condition as of the time of closing of this purchase, Seller may pursue any and all costs associated with bringing the property and facilities back to the original condition. Any contract between CTR and any Freestone affiliate will be automatically canceled within the aforementioned sixty (60) day time period.
