On April 22, YTB was able to get an extension to April 30, 2010 to make the $200,000 payment. But only after they pledged more collateral and gave then $10,000! It seems that no one is willing to make any kind of loan to YTB unless it is secured. Interesting. So, if YTB does not pay then $200,000 tomorrow, they will lose the promissory note and on April 30th, FH Partners can initiate all legal remedies available to secure their $1.9 million loan as well as the promissory note.
On April 22, 2010, the Company entered into an extension agreement with FH Partners pursuant to which the due date for the $200,000 payment was extended to April 29, 2010 (the “Extension”). As consideration for the extension of the due date, the Company assigned to FH Partners that certain Promissory Note made payable to the Company in the amount of $500,000 by WR Landing, LLC (the “WR Landing Note”) and all related documents securing and relating to the WR Landing Note to secure the Note and the Agreement, including that certain Mortgage dated November 24, 2008 securing the WR Landing Note (collectively, the “WR Landing Collateral Documents”). The Extension provides that in the event the Company pays to FH Partners the amount of $200,000 on or before the close of business on April 29, 2010, FH Partners will return the WR Landing Note to the Company and assign back to the Company all of the WR Landing Collateral Documents. In the event the Company does not pay $200,000 to FH Partners on or before the close of business on April 29, 2010, on or after April 30, 2010, FH Partners shall only be obligated to return the WR Note to the Company and assign back to the Company all of the WR Landing Collateral Documents in the event the Company pays in full all of its outstanding indebtedness and obligations to FH Partners. After April 30, 2010, FH Partners will be entitled to pursue all of its rights and remedies against the Company under or related to all security agreements, mortgages and other documents or instruments executed in connection with or securing the Company’s indebtedness to FH Partners, including pursuant to the Extension. The Company agreed to pay FH Partners an extension fee of $10,000 in connection with the Extension, which Extension is contingent upon payment of the extension fee.
