Mexus Gold US (MXSG)

[1manband]

What do you think the toxic lender is doing these days, now that Mexus is a non-discloser?

From similar situations in other delinquent toxic borrowers, I am sure that as soon as Mexus missed the extended deadline, the toxic lenders sent the Company and PT a formal notice of pending default (which typically increases the interest rates dramatically, often more than double, and makes all loans due immediately). They will usually give the company a short period to correct the delinquency, something like 10 days. If not, the lenders issue a notice of default which leads to all the bad things above.

And, along with the notice of default, the lenders also give the company a threat of a lawsuit of they don't come back into compliance. The timing of the filing of such suits depends on how convinced the lenders are that the company will be able to regain compliance. If they don't think they will, the suits are usually filed fairly quickly. Within the month. And the more different lenders there are, the faster the first suit is filed - they are in a race against the other lenders for the few assets, so the first one to file gets the inside track, depending on the language contained in each toxic note agreement.

Mexus is likely screwed beyond any hope at this point. Now it is just a question of how long they can hold off the jackals.