[Karen37a]

As a result of business and legal issues that will be more fully described in the
Debtors’ Case Management Summary (and will be addressed at the proposed Status Conference),
the Debtors were forced to file these Chapter 11 Cases on an exigent basis in order to address a
sudden and acute liquidity crisis and to preserve their assets and business operations for the benefit
of the individual lenders and all other constituencies. As a result of the investigations commenced
by the U.S. Attorney’s Office and Securities and Exchange Commission, with which the Debtors
have been and will continue cooperating, the Debtors have ceased their pre-petition efforts to raise
capita

[WestCoastFunding]

As a result of the investigations commenced
by the U.S. Attorney’s Office and Securities and Exchange Commission, with which the Debtors
have been and will continue cooperatin[/B]g, the Debtors have ceased their pre-petition efforts to raise
capita

That seems important. Or is this standard?

[Kevin Henry-Seacoast]

That seems important. Or is this standard?

You usually don't have the SEC and US ATTY office involved in a CH11 case unless there was potential fraud. Ceasing their pre-petition efforts to raise capital would also paint that picture.....