MEDirect Latino Inc. (MLTO)

[moldme1]

tillyman,
The whole reason the banks have control of the company, and they do have control since they are a majority stake holder and can call all the shots, is because Raymond and Debra converted options into shares which allowed Granite to take over the company for next to nothing per the covenants of the note agreement which they signed. So in their feable attempt to wrestle control of the company back, they were too stupid to realize that it would only be for a short time and would ultimately lead to Granite owning the company and dilluting every existing shareholder including them. It's that kind of incompetence that led to the downfall of the company.

It pretty hard to believe that a venture capital firm didn't have the money to pay out to MLTO. The truth is probably that the more they got to know the company, the more concerned they were, and then started looking for loopholes to get out of it. And since the old management did a great job of violating the terms of the agreement, they were able to withhold their funding. (Note, the last paragraph is pure speculation and is not based on any specific knowledge. However, the company releases do show that the company failed to meet reqirements in the note agreement prior to management change.)