Replies to post #7 on ReoStar Energy Corp (REOS)

[HDOGTX]

If I could short I would have this on my radar:

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On October 15, 2010, ReoStar Energy Corporation, a Nevada corporation (the "Company"), received a letter (the "Letter") dated October 12, 2010 from BT & MK Energy and Commodities, LLC ("BTMK") notifying the Company that BTMK has elected to exercise certain of its remedies under the security agreements associated with the Credit Agreement (as defined herein). BTMK had previously assumed from Union Bank, as the former issuing lender, the rights and obligations associated with that certain Credit Agreement dated October 30, 2008 (the "Credit Agreement") previously entered into among the Company, Union Bank, and certain lenders as added from time to time.

Pursuant to the Letter, BTMK notified the Company that, in addition to the acceleration of the note issued by the Company under the Credit Agreement due to a defaulting quarterly interest payment, BTMK intends to foreclose on the assets of the Company if payment in full is not received prior to November 2, 2010. As a result of the acceleration of the note, the full amount due by the Company is $11,111,942. If such an event were to occur, BTMK intends to hold the foreclosure sales on November 2, 2010.