Thursday, May 29, 2008 8:57:22 PM
taken from the latest Q. If the principles of this company are willing to assume responsibility for this debt IMHO thatspeaks of their faith in the future.
On March 2008, Canvasback, the Company, and three shareholders of the Company,(two officers, Michael Davies and Gordon Davies, and a third individual, Anthony Wilson) entered into an arrangement pursuant to which Canvasback released the Company from further responsibility for the then outstanding principal balance of $450,000 under the revolving line of credit. In return for Canvasback releasing the Company from further liability for this $450,000 balance, the three shareholders personally assumed responsibility for this debt. Accordingly, all of the Company's obligations as repayment of the $450,000 balance were deemed to have been extinguished, and accordingly, the corresponding liability was de-recognized on our books. There was no gain or loss on the extinguishment and re-recognition of liability.
In consideration for the three shareholders' personal assumption for the $450,000 balance the Company agreed to issue notes to the shareholders evidencing principal aggregate debt of $450,000 that are due upon demand and carries annual interest of 12%. This debt is included in the current portion of the notes payable due to related parties.
It takes brass balls to play the pennies
On March 2008, Canvasback, the Company, and three shareholders of the Company,(two officers, Michael Davies and Gordon Davies, and a third individual, Anthony Wilson) entered into an arrangement pursuant to which Canvasback released the Company from further responsibility for the then outstanding principal balance of $450,000 under the revolving line of credit. In return for Canvasback releasing the Company from further liability for this $450,000 balance, the three shareholders personally assumed responsibility for this debt. Accordingly, all of the Company's obligations as repayment of the $450,000 balance were deemed to have been extinguished, and accordingly, the corresponding liability was de-recognized on our books. There was no gain or loss on the extinguishment and re-recognition of liability.
In consideration for the three shareholders' personal assumption for the $450,000 balance the Company agreed to issue notes to the shareholders evidencing principal aggregate debt of $450,000 that are due upon demand and carries annual interest of 12%. This debt is included in the current portion of the notes payable due to related parties.
It takes brass balls to play the pennies
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
