Labor Smart Inc (LTNC)

[DD2Gain]

Once again, Schadel never says that note holders agreed to settle the debt for anything less than the fully amortized amount. He talks about cash payments for the principal plus a little interest, but a lot of "ifs" about fulfilling those agreements and whether or not the note holders accept that as full settlement. Not once has Schadel said: the note holders agreed to settle at x discount. He's said only that they agree to accept cash payment ONLY ON THE PRINCIPAL, which is just an extension of the original agreements that went unpaid past the maturity dates. There is no reason to believe he owes anything less than the $3.5 million in the last Q regardless of how much "voodoo" his "rocket scientist" accountant can do. In fact, the interest is likely still accruing.

Schadel simply doesn't have the cash flow to cover the debt and then there's the matter of $2,000,000 in unpaid payroll tax liability in addition to payroll for non-factored accounts receivable all while he drives around in his new McLaren tweeting about "haters" with his trip-zero stock pushing no bid...again.