Phillips Lionite Wood Products Co, LLC (the “Borrower”), a Wisconsin limited liability company, is indebted to CAP Minnesota, LLC (the “Secured Party”), pursuant to the terms of that certain Promissory Note executed by Borrower dated May 8, 2017 in the original amount of $4,300,000 (the “Promissory Note”) issued pursuant to a Loan and Security Agreement (the “Loan and Security Agreement”).

Phillips Lionite Wood Products Co, LLC (the “Borrower”), a Wisconsin limited liability company, is indebted to CAP Minnesota, LLC (the “Secured Party”), pursuant to the terms of that certain Promissory Note executed by Borrower dated May 8, 2017 in the original amount of $4,300,000 (the “Promissory Note”) issued pursuant to a Loan and Security Agreement (the “Loan and Security Agreement”).  Pursuant to an Unconditional Guaranty of Payment and Performance dated May 8, 2017, M.I.G. Holdings, Inc. (“Pledgor”) has guaranteed all obligations of Borrower pursuant to the Promissory Note and Loan and Security Agreement.  Pursuant to a Pledge Agreement dated May 8, 2017 (the “Pledge Agreement”), Pledgor has pledged all of its membership interests in M.I.G. Properties CIP-1, LLC, M.I.G. Properties CIP-6/A, LLC, M.I.G. Properties CIP-6/B, L.L.C., M.I.G. Properties S1, LLC, M.I.G. Properties S-2, LLC, and M.I.G. Properties S-3, LLC (the “Pledged LLC Interests”) to secure Borrower’s payment under the Promissory Note and Loan and Security Agreement. The Borrower has defaulted on its obligations under the Promissory Note and Loan and Security Agreement. 

The Secured Party will sell some or all of the Pledged LLC Interests at a public sale “as is,” without representation or warranty, according to the following procedures:

Interested bidders are required to deliver a Letter of Intent to Bid to Financial Forensics of Fargo, Mark E. Larson CPA, 4133 30th Avenue South, Suite 104, Fargo, ND 58103 no later than 4:00 p.m., Friday, December 14, 2018 (the “Bid Deadline”).  A Letter of Intent to Bid must include (i) a deposit of $500 payable to CAP Minnesota, LLC, which will be applied to purchase price or, if the bidder is not the Successful Bidder at the Auction, refunded; and (ii) evidence of financial ability to close within 30 days.

After the Bid Deadline, bidders will receive a further invitation to participate in an open bidding process (the “Auction”) conducted by Mr. Larson. The Secured Party reserves the right to credit bid at the Auction.  The Successful Bidder will be required to close within 30 days.

Inquiries concerning the disposition of the Pledged LLC Interests should be directed to Mr. Larson at 701-235-5939.

(Nov 26, Dec 3/10, 2018) 2702422