Cornell Yorkville Clients

[jonesieatl]

TREN : 8-K : Filed Bankruptcy

On May 1 we saw a default on a Yorkville financing , triggering demands by Yorkville.

Now we see TREN filing bankruptcy , and more demands by Yorkville , shown below.

http://www.sec.gov/Archives/edgar/data/859747/000120095208000281/tec_8k-80602.htm

Exerpts:

On June 2, 2008, the Company commenced Chapter 11 Case No. 08-32638 (the “Borrower’s Case”) by filing a voluntary petition for reorganization under the Bankruptcy Code, with the United States Bankruptcy Court for the District of Oregon (the “Bankruptcy Court”). Each of Methane Energy Corp. and Cascadia Energy Corp. (together, and collectively with the Company, the "Debtors"), the Company's subsidiaries, commenced a case under Chapter 11 of the Bankruptcy Code on the same day (such cases, together with the Borrower’s Case, the “Chapter 11 Cases”). The Debtors continue to operate their businesses and manage their properties as debtors-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.

Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The Company is party to an Investment Agreement, dated as of June 28, 2006 (the "Investment Agreement"), with YA Global Investments, L.P., formerly Cornell Capital Partners, L.P., ("YA Global") pursuant to which the Company issued to YA Global 25,000 shares of Series E Convertible Preferred Stock. On June 1, 2008, the Company failed to make a mandatory redemption payment required under the terms of the Investment Agreement and related transaction documents. Pursuant to the terms of the Investment Agreement and related transaction documents, each of (i) the failure to make such payment, and (ii) the commencement of the Chapter 11 Cases, constitutes an Event of Default, upon which YA Global may require the Company to redeem all or any portion of its Series E Preferred Shares. As previously disclosed in the Company's current report on Form 8-K filed with the Commission on February 14, 2008, YA Global has already demanded that the Company redeem all of YA Global's shares of Series E Convertible Preferred Stock for the full liquidation amount, plus accumulated and unpaid dividends thereon, in the aggregate amount of $22,491,147.

On May 15, 2008, the Company executed a short-term promissory note in the amount of $207,854 (the "Note") in favor of YA Global, due June 5, 2008. Pursuant to the terms of the Note and related documents, the Company's failure to make the mandatory redemption payment required under the terms of the Investment Agreement constitutes an Event of Default under the Note and related documents, upon which YA Global may declare all obligations outstanding under the Note immediately due and payable.