DB, I thinks we are splitting hairs here. I think it is a weak arguement to suggest because Owens didn't provide proof that the shares were free of liens/encumberances, that he was in default.
I think, based on what I have heard, that MS/Kendrick just did not have the money to pay him, thus the requests to for extensions. And I have heard that Mike K. has been requesting extension for people who are interested in buying the note.
JMO, but Kendrick thought he would be able to pay, at a minimum, the first $10k, but for whatever reason, is not able.
I guess it is more of an indictment of the MS business plan than his willingness to pay.
At least that is where I am coming down on the subject after reading all the info out there.