Replies to post #45 on Ultra Motorcycle Company (fka UMCC)

[smartestone]

stockaholic, while UMCC may not have the cash to pay off the loan. They do have currency, their stock. Why didn`t they pay the 136k loan payment and keep the finova up to date? They could have easily raised 136k by selling some stock at a discounted price. IMO.

Do they have a history of negotiating loans down? The reason I ask is because of this I found in the filing that finova is willing to take less than the amount due to pay off the loan.

Finova rings a bell. You say it is in bankruptcy. Is that the company the Warren Buffet is trying to buy for .50 on the dollar? Or something like that. And if so would finova be willing to take that kind of a discount to close the loan off its books?

If I were UMCC this is the rout I would take. Issue say 25 million shares at .09. raise the money to pay off the debt and be debt free. The dilution in the larger picture of things would really mean nothing if they can continue to improve earnings year to year as they did the last two years.

"On March 28, 2001, FINOVA notified the Company that FINOVA has elected to accelerate the maturity of, and declare immediately due and payable in full, all amounts of principal and interest owing by the Company to FINOVA as a result of the Company's non-payment of approximately $136,000 in interest due on March 1, 2001. If it so chooses, FINOVA is entitled to exercise its remedies under the loan documents, including foreclosure on the Company's assets. However, as of the date of the filing of this report, FINOVA has not notified the Company of its intention to exercise its remedies under the loan documents and is continuing to communicate regularly with the Company regarding the possibility of a workout while reserving its right to enforce its remedies under the loan documents at any time. FINOVA has informed the Company that it would be willing to consider discounting the note, although no specific amount has been agreed upon. FINOVA has also informed the Company's management that FINOVA is actively seeking to sell the note to a third party and that FINOVA has received inquiries from potential purchasers. To date, the Company has been unable to refinance the FINOVA indebtedness and will not have the resources to repay the FINOVA indebtedness unless new financing is obtained."