Replies to post #61382 on Hong Yuan Holding Group (HGYN)

[Dalamar]

I guess that would give them enough capital to stay in operation and avoid the Ch 7... maybe

[Hi_Lo]

"The company is "actively negotiating a debtor-in-possession financing from several interested parties," according to the release."


In connection with the Bankruptcy Filing, on February 14, 2014, the Company entered into a Debtor-in-Possession Loan Agreement (the “DIP Credit Agreement”) with ProCap Funding (the “Lender”). Pursuant to the terms of the DIP Credit Agreement, the Lender agrees to lend in an aggregate principal amount of up to $1,000,000. The DIP Credit Agreement remains subject to the issuance of a final order by the Bankruptcy Court.

The Company has agreed to provide unconditional guarantees of the obligations of the Company under the DIP Credit Agreement. Under the terms of the DIP Credit Agreement, the interest on the loans provided thereunder will accrue at a base rate of 5% per annum. The obligations of the Company under the DIP credit Agreement are secured by a first-priority security interest in and lien upon all of the existing and after-acquired personal property of the Company. The security and pledges are subject to certain exceptions.


Scheer said he had several interested parties. One down, more to come? Stay tuned.