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Accordingly, I will be receiving interest at the
contract rate during the term of the loan and the
purpose for the commitment fee has been mitigated.
In addition, I agreed to extend the term of the loan to
July 31, 1990 or upon the successful completion of the
current public offering, whichever is first.
On January 21, 1991, an unrelated party later incorporated
as the Joaquin Financial Group, Inc. (Joaquin), made an offer to
purchase the KXDC-AM and KXDC-FM radio stations from WMG for $1.1
million. On July 31, 1991, WMG and Joaquin closed on the
purchase. Joaquin paid WMG $239,514 cash for part of the
purchase price and issued a promissory note of $860,486 for the
remainder. WMG assigned the Joaquin note to petitioner in 1991.
Petitioner applied the Joaquin note to reduce the principal
balance which WMG owed him. Joaquin defaulted on its obligation,
and on November 6, 1992, petitioner sent a notice of default to
Joaquin. In 1995, petitioner received a final receivership
distribution of $549,764.18 with respect to Joaquin’s note.
In addition to the promissory note executed by WMG for up to
$3 million, WMG executed other promissory notes in favor of
petitioner:
Date Amount Interest rate Due
04/21/89 $200,000 12% Demand
04/28/89 20,000 12 Demand
05/23/89 20,000 13.5 Demand
06/09/89 35,000 13 Demand
06/19/89 75,000 13 Demand
07/07/89 45,000 13 Demand
07/11/90 27,000 11 Demand
07/19/90 73,000 11 Demand
08/15/90 20,000 11 Demand
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