Interesting - just what's happening to Matt Veal.

Interesting - just what's happening to Matt Veal.

Give up and let the Loan Sit- Always an option. Many issuers experience a toxic note-holder who will sit on its' hands and wait it out, sometimes for years, hoping the company’s stock price improves or the issuer somehow is able to bring its' financial reporting requirements current, or better yet, some magical mystery investor that will hand over cash to pay off the notes. There are only a handful of lenders, mostly out of New York, Chicago and Massachusetts that will try on litigation to force you to settle or come up with money to pay them off. Usually, they want to force issuance of shares or they want a new deal for more shares – either way, its back to the prior discussed problems of clearing the stock. They may even try suing the CEO personally under some BS fraud claim and as we know now under the Jakoobit case, a convertible note may not be a security and if it’s not a security, there can be no securities fraud claims. Then its simple state based fraud claim and in most states, if there is a breach of contract claim, the fraud claim against the CEO personally usually fails.