Hong Yuan Holding Group (HGYN)

[Renee]

Hi_Lo.....in all instances the Secured Creditors have all rights and entitlements to approve or deny all additional Financings under D.I.P.

Since Horizon holds secured liens on all of Cereplast's assets it is unlikely Horizon would permit ProCap to also be a Secured Creditor on their fully liened assets.

Now, if ProCap were to lend Cereplast the full amount of the Horizon defaults then and only then could they become a Secured Creditor.

$1 million just ain't enough.