Replies to post #20647 on VHGI Holdings Inc fka VHGI

[Neighbor Neil]

As others have mentioned, i also don't believe he/VHGI would have pursued the loan if he wouldn't qualify for the letter of credit. Alas, they leave us no choice but to guess what's happening while we are left to drift aimlessly here with no news or updates. :-/

NN

[EDMGUY]

MS,
Just to be clear, your partial quote doesn't tell the whole story.
All you posted was a forward looking statement that is only wishful thinking until they officially confirm it has happened. Here's the full text:

Item 1.01 Entry into a Material Definitive Agreement.
On May 28, 2013 Lily Group, Inc. (“Lily Group”), a wholly-owned subsidiary of VHGI Holdings, Inc., entered into a Equity Investment Agreement
with Al Rami Pure LLC (the “Investor”). Under the terms of this agreement, at closing the Investor will lend us approximately $65 million. The
investment will be for a maximum term of 10 years. As consideration, the Investor will receive 45% of Lily Group and a lien on Lily Group’s assets,
together with royalties and/or dividends at the rate of 1.25% per annum. We have the right to buy back the equity in Lily Group at the end of any
calendar year, on the basis of the fair market valuation of the outstanding. The closing of the Equity Investment Agreement is subject to a number of
conditions precedent, including delivery of a letter of credit in the amount of $10.5 million, the finalization of a definitive use of proceeds and the
company reaching an agreement with its current senior secured lender. We are actively engaged in efforts to satisfy these conditions precedent with
the goal of closing the transaction as soon as practicable.
However, given the number of conditions which must be satisfied, there are no assurances
this transaction will be consummated.

Effective May 28, 2013 Lily Group also entered into a Memorandum of Understanding with Lily Group Holdings Company (“LGHC”), an entity
owned by Mr. Risinger, our Chief Executive Officer. Pursuant to the terms of the Memorandum of Understanding, LGHC will obtain the
aforementioned letter of credit and certain other personal guarantees required by the Investor to satisfy the security requirement for the loan. As
consideration, Lily Group will permit LGHC to hold the net proceeds of the loan in an account of its choosing and release the funds for Lily Group’s
benefit in accordance with the specific use of proceeds to be agreed upon by Lily Group and the Investor.
We previously reported that in April 2013 we entered into a similar loan agreement with Ariana Turquoise Investment AS, the closing of which was
subject to the satisfaction of certain conditions precedent. Those conditions precedent were not satisfied and that agreement was not
consummated. The aforedescribed Equity Investment Agreement represents replacement financing for our company.