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sand20man

06/22/07 9:09 AM

#8686 RE: easycome92 #8685

Please respond about MXXR and their current situation with Clovelly. Are they still in?
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rwa3848

06/22/07 9:15 AM

#8689 RE: easycome92 #8685

MXXR's 5% rights to the Clovelly project presents a legal obstacle for the other partners who wish to develop the project. In order to proceed without startup funding from MXXR, these partner's must either agree to acquire a lien on MXXR's share of the return, buy MXXR outright, help to find financing for MXXR, or wait until BK proceedings unravel after a few years of legal wrangling just to acquire the stake or have a purchaser come along who can finance the % startup cost for Clovelly.
The Downside of having to wait is the loss of possible revenue that can keep your company from BK. Remember most of these PennyCaps are just as burdened by contractual loans. Missed opportunities can and do often bankrupt...