At December 31, 2009, the Company had two notes mature, Isle of Capri Casinos, Inc. ('Isle') for $3,000,000 plus interest, and the Stuckert/Howell Note of $1,000,000 plus interest. The Company failed to pay these amounts on December 31, 2009 at maturity (For more information reference Form 8-K dated December 31, 2009). On March 1, 2010 the Company was served with a complaint by Isle (See Item 3. Legal Proceedings) . At December 31, 2010, the Company owed Isle $3,000,000 principal plus $885,986 in interest. At December 31, 2010, the Company owed $1,000,000 principal plus $254,644 interest on the Stuckert/Howell note. The Company is currently in negotiations with Mr. Stuckert and Mr. Howell to extend the Note. As of the date of this filing, Mr. Stuckert and Mr. Howell have not informed the Company of any default.
At December 31, 2010, the Company owed $2,827,477 on a note to Miami-Dade County. The Company has made the required payments to Miami-Dade County. (See Note H)
The Company borrowed $500,000 from Nurmi Properties, LLC on December 11, 2009, and additional borrowings from Nurmi total $335,000 through March 31, 2010 (See Form 8-K's dated December 11, 2009, and February 4, 2010). On April 16, 2010 the Company borrowed an additional $75,000 from Nurmi Properties, LLC (See Form 8-K dated April 16, 2010), for a total of $910,000. On June 2, 2010, the Company borrowed an additional Seventy Five Thousand Dollars ($75,000) from the Lenders pursuant to a Note and Mortgage Modification (the 'Fifth Modification'), among the Company and the Lenders. The Original Note and Mortgage became $985,000 rather than $910,000. On October 12, 2010, Nurmi Properties, LLC modified the mortgage by extending the Note one year from December 11, 2010 to December 11, 2011. (See Note H)
On February 4, 2010, the Company borrowed $90,000 from H2C (refer to Form 8-K dated February 4, 2010). On April 28, 2010, the Company entered into a Promissory Note and Mortgage with H2C, Inc. pursuant to which the Lender advanced to the Registrant two hundred fifty thousand dollars ($250,000). $82,156 of the Advance was used to pay to the Lender all outstanding principal and accrued interest due to the Lender pursuant to a Promissory Note for the Registrant dated February 4, 2010 (See Form 8-K dated April 28, 2010). The Company was to make monthly interest payments on the Note. The Note was due December 31, 2010. On December 31, 2010 H2C, Inc. extended the due date of the Note to March 31, 2011 (See Form 8-K filed January 6, 2011). The Company has not made the required interest payments on this Note. (See Note H)
On July 1, 2010, the Company entered into a Promissory Note and Mortgage pursuant to which the Lender advanced to the Registrant fifty thousand dollars ($50,000) (the 'Advance'). Under the Agreements, the outstanding principal amount of the Advance bears interest at an annual rate of ten percent (10%). Accrued interest is payable to the Lender in five monthly installments of $416.66, with a balloon payment of the outstanding principal amount of the Advance and all accrued but unpaid interest due on December 31, 2010. The Company has not made the required interest payments on this Note. The Company's obligations under the Note are secured by a first mortgage (the 'Mortgage') in the Lender's favor with respect to with respect to 18 acres of unimproved real property in St. Lucie County in the state of Florida. No prepayments are permitted under the Note. (For further information refer to Form 8-K filed July 8, 2010). On December 31, 2010 H2C, Inc. extended the due date of the Note to March 31, 2011. (See Note H)
The Company has a note with Freedom Holding that was scheduled to mature on March 1, 2010. The Company extended their $1,322,574 note with Freedom Holding through September 1, 2010. On September 1, 2010, the Company extended the Note until September 1, 2011. (Refer to Form 8-K filed September 8, 2010)
The Company executed a note payable to a party in settlement of a lawsuit. The $200,000 note is unsecured and bears interest at 7.0%. Payments of interest were paid through October, 2010, with all remaining unpaid principal and interest due February 1, 2011. The Company did not make the required interest payments for two months in 2010, and the principal payment and accrued interest was due February 1, 2011. The Company is currently in negotiations with the Company to extend the Note. (See Note H)
The Company had a mortgage note payable on one of the 6 lots at Tara Club Estates in Georgia. The note matured on November 17, 2009. The Company failed to repay the Hamilton State Bank note of $36,691 plus interest of $4,924. The Company is currently in default on the mortgage and Mr. Collett has been named the defendant in a lawsuit filed by Hamilton State Bank. The suit has been filed . . .
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
What do you think of this report?
