Good afternoon HHSE Friends & Followers – we are writing today to clarify some misconceptions and intentional misstatements on chat boards about status of final resolution of the HHSE deal with TCA Global Master Fund.
In filing a motion for default (about two months ago), TCA’s attorney made some representations to the court that were clearly and demonstrably in error, including:
a). Failure to provide credit reductions for prior payments;
b). Statements that inaccurately represented that TCA (through Magna) was unable to receive freely trading shares (when, in fact, TCA / Magna has received 38.8-million shares in 2015 alone!)
c). Statements which inaccurately represented the limited scope of the U.C.C. Security Interest (which is very specifically limited to a partial list of pre-2013 catalog titles – and does not extend to the new releases and ventures which drive the majority of HHSE current revenues).
d). Failure to disclose to the court that an authorized representative of TCA had agreed (both telephonically and via emails), to NOT proceed with the lawsuit or filing of a default as long as HHSE was continuing to process payments (either in cash or via MAGNA transfers);
When HHSE learned that the attorney for TCA had filed a default – and that the motion for default contained multiple errors (above) in the filing to the court – we had to make a managerial decision. Do we spend time and money to file with the Florida courts an objection to the default, and cite the client’s agreement to defer action, or cite the errors in the filing? Or do we simply finish off the last few payments and get this matter off our plates and removed as the toxic distraction that it has become? We elected to take the faster route of just paying it off… and since that date, the balance has been reduced by $100,000 and only $100,000 remains ($50k each payments for Nov. 4 and Dec. 4).
These issues of fact are not up for debate or reinterpretation by reality deniers. The shares that TCA / Magna received are clearly evidenced; the payments that HHSE has made are clearly evidenced; and the limited scope of the TCA U.C.C. Lien is a publicly filed document. End of story, and fortunately for HHSE and our legitimate shareholders, we're at the end of the TCA relationship.