To be more clear:
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On April 9, 2008, Petrol Oil and Gas, Inc. ("Petrol") received a notice of default (the "Notice of Default") from LV Administrative Services, Inc., administrative and collateral agent for: Laurus Master Fund, Ltd., Valens Offshore SPV I, Ltd., Valens U.S. SPV I, LLC, Calliope Capital Corporation and Pallas Production Corp. (collectively, the "Holders"). The Notice of Default asserts that Petrol is in default of certain obligations under its Secured Convertible Term Note, dated October 28, 2004, in the principle amount of $8,000,000; its Secured Term Note, dated October 31, 2005, in the principle amount of $10,000,000; its Secured Term Note, dated March 31, 2006, in the principle amount of $5,000,000; and its Secured Term Note, dated May 26, 2006, in the principle amount of $10,000,000 (collectively, the "Notes").
The Notice of Default demands immediate payment of all monies due under the Notes because of multiple events of default, including failure to make payments when due. Pursuant to the declaration of an event of default, the Holders have declared the entire outstanding and unpaid principal amount of the Notes, together with the accrued and unpaid interest immediately due and payable. The Notice of Default asserts that of April 8, 2008, the total amount due to the Holders is $34,881,420.09. The Notes are collateralized by substantially all of the assets of the Company.
Fee! Fie! Foe! Fum!
I smell the blood of an Englishman.
Be he 'live, or be he dead,
I'll grind his bones to make my bread.
