In 2007-2008, USCL attempted to complete a fifty Million USD, ABS bond offering through the ARCIS Trust in Spain represented by the Sacramento law firm of Michael Kessler. The bond offering circular was CUSIP and ISIN approved and listed. The bond was approved for trading through the Depository Trust Company or DTC. The bond circular and memorandum may be found at: http://energycite.com/docs/usclbondoff.pdf
Due to the shift in the worldwide financial outlook in 2008 and the resulting inability to obtain a Standard & Poor’s or Moody’s opinion, the bond offering was unsuccessful. In order to raise operating capital during the period of bond preparation the company offered its existing shareholders an interest bearing syndicated bridge loan it styled as SBL. The company currently has approximately $275,000 in outstanding SBL obligations.
Given the fact that the SBL’s are significantly past due beyond the point of statutory limitation, management anticipates it will be able to negotiate settlements of all SBLs at mutually favorable terms between the firm and those shareholder/lenders.