FDIC & Tytans Settlement Negotiations info
DEFAULTS ON SENIOR SECURITIES :
as seen on PAGES 11 & 16 of the "Q2" Quarterly Report of Aug 15 2011
Tytan International, Inc. has had an Operating line of Credit with Cowlitz County Bank of Longview WA. Tytan has never been delinquent on any payments during its 5 year relationship with the Bank. In 2009, Cowlitz Bank failed and was taken over by the FDIC . Prior to Cowlitz Bank failing, the Bank was cash strapped and thus did not renew Tytan’s Line of Credit as well as other Commercial Loans. This put Tytan into default on its Note. Cowlitz Bank sought and received a judgment in April 2010 against Mark Leonard directly as the Guarantor. Tytan Holdings, Inc. does not have a Judgment against it.
Mark Leonard filed an appeal to this action. Shortly after the appeal was filed, the Bank failed . The Court’s judgment was affirmed in April 2011 (see Exhibit A below). Tytan international, Inc. is technically in default of that loan as of May 11, 2011, and as of the date of this Quarterly Report.
The company believes that Mr. Leonard continues to have very productive meetings with the FDIC concerning the satisfaction of the $700,000 judgment against him and the Company’s defaulted $660,000 loan with the now defunct Cowlitz County Bank. Tytan has had many contacts with the FDIC in order to promote mutual agreements. Negotiations are in progress as of the filing of this report. The Company Tytan Holdings, Inc. Quarterly Report March 31, 2011 Page 17 reports that all parties involved are cooperating at the highest level to seek a fair and equitable resolution.
> Nov 29 2011 3rd Quarterly Report
Quote:
> NOTE B - SHORT TERM NOTE
The Note payable is to Cowlitz Bank under a 650k Flooring Line of Credit that expired Oct 31 2009, and is overdue. The Company is negotiating with the FDIC to settle the debt and is making payments of $1,500 per month while negotiating a settlement . The Note is secured by the company's inventories, property and equipment quaranteed by the company's controlling stockholder, Mark Leonard.
Recently Tytan has located the original letter of commitment from the Bank that verifies that Tytan had a “Flooring line or revolving line of credit” and not the Operating Line as the Bank has claimed it was. The terms of this commitment was, that as long as Tytan was current in all obligations of the loan and with proper ratios, which it was, the loan would be automatically continued at the end of each year. Tytan has always met the Banks criteria for the Flooring loan requirements. This new development is now being discussed with the FDIC .
> " UNPUBLISHED COURT OPINION - COWLITZ BANK vs Mark Leonard" - April 12 2011 (by NYCBorn)
http://investorshangout.com/post/view?id=42969
> Heres a list of FAILED banks and the acquired bank accounts that got transfered, you will see Cowlitz bank failed and the accounts got transfered to Heritage bank but since Tytan/Mark Leonard had negotiations and the FDIC decided to transfer it to MIDLAND BANK as you can see it's also one of the banks that took some other failed banks accounts.
http://www.fdic.gov/bank/individual/failed/banklist.html
http://money.cnn.com/news/storysupplement/eco...ures/list/
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Lease resolutions for Land/properties occupied by Tytan Intl
> 2010 Annual Report ((Pg 37 of 77pg)
BOARD OF DIRECTORS' RESOLUTION FOR TYTAN INTERNATIONAL, INC. TO ENTER INTO A LEASE
Pursuant to the provisions of 23B.08.210, the undersigned director, Mark Leonard of Tytan International, Inc. of Washington, Inc. a Washington corporation (the "Corporation"), acting by unanimous consent of the directors, hereby adopt the following Corporation resolutions and hereby consent to the taking of the actions set forth therein.
RESOLUTION A
RESOLVED : That Tytan International, Inc has been approved by the Board of Directors to enter into a lease with Mark A. Leonard on the 5225 Meeker Drive, Kalama WA 98625 facility and land.
RESOLUTION B
FURTHER RESOLVED : That the officers of the Corporation have authorized Tytan to execute the Lease for existing properties occupied by Tytan and that has a monthly payment of $4000 per month. Term of the lease will be for 7 years until June 31, 2015 . Additionally it is understood that Tytan will be carrying all insurances needed & required by the Lease.
Approved this 6th day of July, 2008
/s/________ Mark Leonard, President & Director Tytan Holdings, Inc. 2010 Annual Report Page 38
$TYTN
