Replies to post #21757 on VHGI Holdings Inc fka VHGI

[benchman]

That's what it looks like. Wow. They actually got the letter of credit, and Al Rami didn't execute. It looks like this occurred on September 12th.

[gogzilla]

That's what I'm reading too, but I'm unsure if the $13m that is mentioned is the letter of credit that was needed to secure financing.

[Shavasana]

The Arab company didn't hold up their end of the agreement? No really? Lol

[Underboss]

Al Rami has pulled out, and Lily on default with Lender (Platinum) and all other notes & obligations. As for "Lily Group Inc. is attempting to close the final issue of the failed transaction by successfully retrieving the deposited funds placed on deposit within the UAE banks associated with this transaction", I think Lily may have opened some UAE bank accounts & deposited some funds while negotiating with Al Rami? Now that they are pulling out their funds, it may also be a sign that Lily and Al Rami/UAE will not have dealings in the foreseeable future. JMO.

Today's 8K clears up some air IMO.

Item 1.03
Bankruptcy or Receivership.

On September 23, 2013, due to the failure of Hassan Alshaban Principal and Al Rami PureAl Rami Pure LLC to perform under the terms of the agreed upon renegotiated terms of the Equity Investment Agreement as described in Item 8.01 of this report, Lily Group Inc., a wholly-owned subsidiary of VHGI Holdings, Inc., filed a voluntarily petition for reorganization under Chapter 11 of the United States Bankruptcy Code in Bankruptcy Court for the Southern District of Indiana, case number: 13-81073-FJO-11. Lily Group, Inc. remains in possession of its assets and continues to operate its business as a debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

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

As a result of the filing of the Chapter 11 petition described in Item 1.03 of this report, an event of default has occurred pursuant to the terms of the $13,000,000 Note Purchase Agreement between Lily Group Inc. and Platinum Partners Credit Opportunities Master Fund LP. VHGI Holdings, Inc. is also in default of all outstanding notes and obligations identified in the company’s 10k filed June 26, 2013.

Item 8.01
Other Events.

On September 12, 2013 Lily Group, Inc., a wholly-owned subsidiary of VHGI Holdings, Inc., notified Al Rami Pure LLC that it was terminating the Equity Investment Agreement between the parties as a result of the failure of Hassan Alshaban Principal of Al Rami Pure and Al Rami Pure LLC to perform under the terms of the agreement. Lily Group Inc. is attempting to close the final issue of the failed transaction by successfully retrieving the deposited funds placed on deposit within the UAE banks associated with this transaction.