Ygrene Pace Financing Settlement

Thank you to everyone who took part in the eGroup settlement with GSEC on June 8, 2015! All payments completed on schedule and as required, with the exception of the $81,384.40 payment made by eGroup in the first quarter. GSEC will accept any partial payment of the full settlement (eGroup is still unable to make an additional transfer of funds from eGroup to Third Party Financing in our favor).

Refunds will be issued to the debtor once the debtor has made the payments required by the settlement. GSEC has continued to ship the payments and will continue to accept partial payments until all funds have been distributed to Third Party Financing. We have submitted a letter to GSEC thanking them for their continued support of the settlement. See below for eGroup’s response on GSEC’s resolution of the dispute.

Debtors: Kalko, Belaire, and LaFrance

GSEC:

Finally, we are now officially closing out eGroup and its creditor obligations on the eGroup portfolio. We made a lump-sum cash payment ($1,463,819.36) to GSEC with the remaining $824,859.36 to Third Party Financing upon closing. We also have paid an additional $18,054 to Kalko as a working capital payment. This payment to Third Party Financing has included Third Party Financing as a creditor, in this matter GSEC is not. Third Party Financing has until the debtor makes the $121,939.93 payment to it from the next step in the settlement. Third Party Financing has held a prepayment notice and is now waiting to see when the full settlement has been made and will be expected to make that partial payment before receiving any benefits.

Third Party Financing:

Third Party Financing has filed a proof of claim and remains in the process of collecting it. Third Party Financing continues to accept payments from eGroup and remains dedicated to honoring the Final Settlement by keeping any excess funds that we hold or have held to repurchase. GSEC has stated that it will not renegotiate the Final Settlement until the final payment is made to Third Party Financing.