They owed a lot of money to a lot of toxic lenders.
According to a lawsuit filed by Coventry Enterprises LLC against BRTXQ on February 7, 2020, BRTXQ had overdue Notes owed to Coventry and starting in January 2020, Coventry began making a series of requests for conversions and each time they were told by BRTXQ that no shares were available despite BRTXQ raising its A/S from 300,000,000 to 2,000,000,000 in January 2020.
On January 31, 2020, Coventry put in a request for BRTXQ to reserve 2,136,015,106 shares for debt conversions for 3 notes held by Coventry (a $205,000 Note from January 23, 2019, a $105,000 Note from September 12, 2019, and a $110,250 Note from October 14, 2019).
Conventry asked for a restraining order to prevent BRTXQ from converting any more stock for the other lenders until they met their obligation to Conventry.
Apparently, Conventry felt that BRTXQ was showing favoritism to the other Note holders, some of which quickly became participants in the suit as intervenors:
Power Up Lending Group LLC EMA Financial LLC Eagle Equities LLC Auctus Fund LLC
The group came to an agreement for BRTXQ to do a 1:1,000 reverse split in March of 2020, but obviously BRTXQ didn't get approval from FINRA.
BRTXQ filed for Bankruptcy on March 20, 2020 still owing money to all of the Note holders listed above plus several others mentioned below.
Who was getting the shares that quickly shot the O/S up from under 300,000,000 to nearly 2,000,000,000 in January and February of 2020 I'm not sure.
It was likely a combination of Power up, EMA, Eagle, Auctus, and the other toxic lenders in green below with Conventry getting left in the dust.
According to the Bankruptcy petition quite a few toxic lenders are owed money:
Auctus Fund LLC is owed $3,261,819 Pharos Advisors is owed $1,200,000 K&L Gates LLP is owed $706,155 GS Capital Partners LLC is owed $649,580 Dr Wayne Marasco is owed $550,000 Odyssey Capital Funding is owed $423,012 Eagle Equities is owed $394,875 Gladstone Corp is owed $368,250 SBI Investments LLC is owed $326,701 Labrys Fund LP is owed $275,762 LG Capital Funding LLC is owed $266,651 Crown Bridge Partners LLC is owed $266,076 Coventry Enterprises LLC is owed $252,543 HRW Legacy LLC is owed $233,381 EMA Financial LLC is owed $211,377 JSJ Financial LLC is owed $210,058 GW Holdings LLC $187,390 Gene M Bernstein is owed $163,660 Lance Alstodt is owed $161,350 Harvey & Melody Alstodt is owed $152,082
That's 13 total toxic lenders:
Power Up Lending Group LLC EMA Financial LLC Eagle Equities LLC Auctus Fund LLC Coventry Enterprises LLC GS Capital Partners LLC Odyssey Capital Funding SBI Investments LLC Labrys Fund LP LG Capital Funding LLC Crown Bridge Partners LLC JSJ Financial LLC GW Holdings LLC
So basically with so many toxic lenders owed money it was a race to convert debt in January and February of 2020 and the A/S was maxed out in no time with everybody still owed money at the end.
Since Auctus Fund has by far the biggest amount of debt, it makes sense that Auctus is taking the lead in the Bankruptcy from the lenders side, but the only "saving" they will be doing is for themselves. I doubt this turns out very well at all for the common shareholders in the end.
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