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Paul Has Signed Over The Name"elio Motors" To Racers Trust As Collateral For Unpaid Debts...

4matic

4matic

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Donnyboy said:
I think he and Stu and just working more like business partners. He has to give up some ownership and power to get this done.
Click to expand...

The recent SEC fillings intricate Stu continues to add extremely onerous financial requirements on Elio Motors...

Not a pretty picture for Paul at this point...

If Elio Motors is unable to raise the capital that Stu is requesting in a timely manner...Paul will be forced out...and will give up the name Elio Motors...

With the updated July 1,2017 agreement...Stu is very close to assuming complete control of Paul's destiny...

One can assume that Stu is attempting to protect himself if bankruptcy occurs...

I don't think the term "friendly business partners" is in the cards anymore...
 
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Rob Croson

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4matic said:
From the bottom of page 26 of Elio Motors most recent SEC filing...

In consideration for the July 1, 2017 agreement, the Company assigned as additional collateral all trademarks and trade names including, but not limited to, "Elio Design" and "Elio Motors".

It appears RACERS Trust now holds the names "Elio Design" & "Elio Motors" as collateral for unpaid debt...

In my opinion...this foreshadows that Paul may be losing control of Elio Motors...
Click to expand...
That's collateral on the loan. It doesn't outright assign ownership. If EM defaults on the loan, then the collateral is transferred to the lender.

Your thread title is written like clickbait. Paul has not signed over the name or trademarks. He has put them up as collateral to secure a loan. Which he might as well do. If this last ditch effort fails, they will be worthless.
 
4matic

4matic

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Rob Croson said:
That's collateral on the loan. It doesn't outright assign ownership. If EM defaults on the loan, then the collateral is transferred to the lender.

Your thread title is written like clickbait. Paul has not signed over the name or trademarks. He has put them up as collateral to secure a loan. Which he might as well do. If this last ditch effort fails, they will be worthless.
Click to expand...

My thread title reads...

Paul has signed over the name"Elio Motors" to RACERS Trust as collateral for unpaid debts...

The thread title is 100% accurate...this is what has recently occurred...

This allows Stu to remove ownership of the "Elio Motors" name from Paul in the event he's unable to meet his financial obligations...

It would allow Stu to restructure the company as necessary in hopes of recovering some of his investment...


 
4matic

4matic

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Donnyboy said:
Or maybe this got dropped into the filing because lawyers on both sides wanted to run their meters a little longer. ;)
Click to expand...

Stu has the economic resources to employ a whole team of top-notch attorneys...

Given that Elio Motors is currently starved for cash...Paul's legal representation has probably dried up...

Stu holds all the cards at this point in time...
 
Elio Amazed

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4matic said:
My thread title reads...

Paul has signed over the name"Elio Motors" to RACERS Trust as collateral for unpaid debts...

The thread title is 100% accurate...this is what has recently occurred...

This allows Stu to remove ownership of the "Elio Motors" name from Paul in the event he's unable to meet his financial obligations...

It would allow Stu to restructure the company as necessary in hopes of recovering some of his investment...
Click to expand...
Again... Stu doesn't have a thing to do with RACER trust in Shreveport. Nada. Totally separate entities.
Nor does Stu have anything to do with the "July 1,2017 agreement"! Nada. Also totally separate.
Stu's company is IRG. RACER is the government's trust created to oversee abandoned auto sites.
I believe the Shreveport plant was purchased by Caddo Parish in 2013 and is leased to IRG by Caddo's IDB.

The "lien" on the name etc. was done because EM owes RACER trust approximately $23M for equipment and the payments are long overdue.

I'm sure in order for RACER not to call in it's loan and end the whole show, they (RACER) requested this.
It only means that if it goes completely South, RACER at least will not have to fight others over what's left.

Again, Stu has nothing to do with this, except for the fact that he has a completely separate vested interest in Elio Motors.
 
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