Bankruptcy May Not Be A Good Solution...

[TexasTesla]

Bankruptcy for Elio Motors may not be an ideal solution for Paul...

According to this previous SEC filing...Elio would not be fully protected by filing bankruptcy...

It appears declaring chapter 7 or chapter 11 will not protect Elio Motors from default to RACERS TRUST.


“Forbearance Termination and Default. On or after October 31, 2018, RACER shall be free to commence any action or proceeding against Elio or the Collateral and to otherwise enforce all of its rights and remedies under the Note and Loan Documents. Furthermore, if (i) Elio shall default in any of its obligations under this Agreement including without limitation, the payments required pursuant to paragraph 4, above, or (ii) a petition in bankruptcy or other insolvency proceeding is filed by or against Elio, or (iii) any event of default set forth in the Loan Documents, PSA or under applicable law (other than the Existing Defaults) shall occur prior to the Forbearance Termination Date, or (iv) CH Capital or any other person or entity seeks to enforce rights or remedies against the Collateral or any of Elio’s property or assets, or (v) Elio breaches any representations, warranties and covenants set forth in this Agreement, the PSA or any Loan Document, or (vi) any liens, other than those currently held by CH Capital attach to or are asserted against the Collateral or any other assets of Elio, or (vii) Elio defaults under the CH Loan, or (viii) a judgment is entered against Elio; ((i) – (viii) are collectively, the “Forbearance Defaults” and individually a “Forbearance Default”), then, in any such event, RACER’s agreement of forbearance hereunder shall automatically terminate and RACER shall have the right to commence any action or proceeding and take all enforcement actions against Elio and the Collateral and to otherwise pursue any and all rights and remedies under the Loan Documents. Additionally, upon the Forbearance Termination Date or a Forbearance Default, all sums due under the Loan Documents shall immediately become due and payable.”


....

 

[TexasTesla]

Another interesting tidbit from a 2017 Elio Motors 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 holds the names "Elio Design" & "Elio Motors" as collateral for unpaid debt...

I wonder if Racer Trust ever acted on this?

Is Paul still in control of Elio Motor?

With no current Elio Motors SEC documents on file... It’s hard to understand what’s going on behind the scenes at Elio Motors...

I wonder how they’re handling all the millions of dollars of unpaid debt...

So many legitimate questions...and so few answers...

....

 

[RSchneider]

If a company is broke, then you can’t get blood out of a turnip. So bankruptcy is not a problem. Many companies do this.

 

[Grumpy Cat]

Texas Tesla, why are you here? I haven't seen a single positive post from you since I can't remember when.

 

[Watashiwah]

Texas Tesla, why are you here? I haven't seen a single positive post from you since I can't remember when.

GC, I just gotta ask, what is there ‘positive’ to post about? I really am trying my best to not ‘ring in’ with more questions on just how Paul and Hari got to this stage. Are you recommending ‘if you don’t have anything good to say, say nothing at all?” That wouldn’t really do for an ‘Elio’themed site: I do remember a time, on this forum, where even chatting about other vehicles was discouraged, other topics were abruptly shut down, and anything even remotely questioning Saint Paul was taboo. Maybe you’d like to hear ‘Thanks Paul for re-publishing that story on the door handle, I forgot all about getting in and out!’

Now to backfill the EM information ‘blackout’ there’s NASCAR and Guns (not that there is anything wrong with that!). I bet that’s all ok now because not only is there no ‘positive’ Elio news, there is absolutely no Elio news whatsoever. A ‘purist’ would say that ‘Elio Owners’ is a misnomer as there is only one owner, and he owns all five of them.

Maybe the safe ‘positive’ route has to be to speak of anything Non-Elio. What other non-Elio topics should be discussed? If you want to hear positive things, why don’t you start another topic?

 

[Grumpy Cat]

GC, I just gotta ask, what is there ‘positive’ to post about? I remember a time, on this forum, where even chatting about other vehicles was discouraged, other topics were shut down, and anything remotely questioning Saint Paul was taboo. Maybe you’d like to hear ‘Thanks Paul for re-publishing that story on the door handle, I forgot all about getting in and out!’

Now to backfill the EM information moratorium there’s NASCAR and Guns (not that there is anything wrong with that!). I bet that’s all ok now because not only is there no ‘positive’ Elio news, there is no Elio news whatsoever. A ‘purist’ would say that ‘Elio Owners’ is a misnomer as there is only one owner, and he owns all five of them.

Maybe the safe ‘positive’ route has to be to speak of anything Non-Elio. What other non-Elio topics should be discussed? If you want to hear positive things, why don’t you start another topic?

How about constructive criticism rather than cheering on the death of a vision that will change the way a lot of people commute?

 

[Watashiwah]

‘A dollar short, and a day late.’ Many of us tried ‘constructive criticism’ thru the years; a blind man can now see its too late. Besides remedies always fell on deaf ears. Now it’s ‘lessons learned,’ which apologists and excuse makers naively confuse with ‘negativity.’

 

[Grumpy Cat]

‘A dollar short, and a day late.’ Many of us tried ‘constructive criticism’ thru the years; a blind man can now see its too late. Besides remedies always fell on deaf ears. Now it’s ‘lessons learned,’ which apologists and excuse makers naively confuse with ‘negativity.’

What's your reservation number?

I've said it before and I'll say it again, why come to a tiny forum to troll it and make yourself feel better? Shouldn't you go outside and enjoy life a little?

 

[Elio Amazed]

Another interesting tidbit from a 2017 Elio Motors 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 holds the names "Elio Design" & "Elio Motors" as collateral for unpaid debt...

I wonder if Racer Trust ever acted on this?

Is Paul still in control of Elio Motor?

With no current Elio Motors SEC documents on file... It’s hard to understand what’s going on behind the scenes at Elio Motors...

I wonder how they’re handling all the millions of dollars of unpaid debt...

So many legitimate questions...and so few answers...

....

Unless I understood wrong, Stu and CH capitol guaranteed the loan with RACER Trust. As i remember, it was the only way EM could get the equipment because they had virtually nothing to put up as collateral. So if EM went into bankruptcy, the obligation would turn to Stu and CH for what's left on the $25M owed. Stu and CH, in turn, would have no other choice than to go to the pile of ashes to try to get back what they could from EM at that point.

 

[Watashiwah]

FWIW, I hold enough stock in Elio to ‘troll’ all I want, for starters. Regardless, my (all our) losing money whether thru ‘reservations with’ or ‘investing in’ Elio Motors only effects how much money Paul and Hari made and squandered. If people other than them made money it was only thru the lucky timing of stock buying and selling based on unsupported ‘Forward Looking Statements’ and arguably, manipulation.

What’s the opposite of ‘Trolls’ ? ‘Shills’ Accomplices of hawkers? Paul and Hari made a lot of money on many people that lost (some to any) money. Some lost a lot of money. Some had two reservations. Shills for this, no one needs. Defending or ignoring this makes one no better than Paul or Hari. Where are they?

Let them defend themselves from the ‘trolls.’