Billyboy:
I am not saying you are wrong as I agree with you as to the status of the senior lenders. I know several of them myself. But I do have an issue with a couple of them when it comes to this misuse of funds deal.
If the numbers (principal on the loans) below are close and I believe they are (the formatting did not transfer well - making them hard to read) based on the BK filings then I am not convinced MD and Staff are guilty of much misuse of funds. After all they moved one heck of a lot of dirt, They drilled a lot of holes, they built a pretty good lab and they have a mill sitting there that experts tell us would be worth about $60 Million if it were producing.
Looks to me like they accomplished a few things with $24 Million. Maybe not all they should have done but I think Mark was expecting LTF "any time" and proceeded on that assumption. Smart? Maybe not, but he trusted in his partners and what they were telling him - IMO.
I know they did much of what they did on the backs of shareholders and unsecured lenders but I wonder if lack of funds (adequate funds - it costs a lot of money to build a mining company from scratch) wasn't more of an issue than misuse of funds.
WUCC
Secured Loans Principal Only - No Interest or penalties.
To:
BLOC et.al. 1st TD $7,500,000.00
BLOC et.al. 2nd TD $3,000,000.00 3rd & 4th lien filings show this amount as $ 725,500.00
Devin Durrant 3rd TD $700,000.00
Devin Durrant 4th TD $350,000.00
Comstock Financial TD $395,127.00 Transferred to Dalton.
Massey Coal TD $10,000,000.00 Fully funded? Any Paid down by shipping Mag?
Empire Title $1,800,000.00 Interest Included?
Republic Bank $1,025,000.00 Interest Included?
Total Principal $24,770,127.00
BTW with some of the fees and stuff charged up-front - in true "hard money" fashion - I wonder how much actual CAPITAL MD had to work with?? Can we adjust these principal amounts by 10%, 15% or more to come up with the real number? Was the loan shown in the 2nd Trust Deed ever fully funded? Filings by Durrant seem to indicate that the 2nd TD was for only $725,500.00 but I see a claim for $4,000,000.00.
I will agree with you on the mismanagement part.
JMHO do your own DD etc etc
Thunder
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