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Notes Payable to Related Party
12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Notes Payable to Related Party

6.Notes Payable to Related Party

 

Notes payable to related party consist of notes payable to Catamaran dated January 22, 2014, April 24, 2014, February 5, 2015 and June 30, 2015, for a total value of $2,119,600 including accrued interest of $119,600. The Catamaran Holding, Ltd. (“Holding”), the sole shareholder of Catamaran, has directors in common with Inversiones, one of the major shareholders of MBC. The indirect beneficial owner of Inversiones is UBHL. Dr. Vijay Mallya, the Chairman of the Board of Directors of the Company is also the Chairman of the Board of Directors of UBHL. The Company has asked Catamaran whether any relationships exist between the shareholders of Holdings and any affiliates of the Company, and has not received a response to such inquiries.

 

The notes are payable within six months following the date of the notes, subject to the receipt by the Company of an equity investment by the Company’s majority shareholder in an amount sufficient either (a) to pay the notes through Permitted Payments, as defined below, or (b) to pay the notes and certain existing obligations of the Company to Lender. “Permitted Payments” on the notes are payments made from the equity investment by the Company’s majority shareholder. If the Company is not able to satisfy its obligations on the notes within the six month period following the date of the notes, the notes shall be automatically extended for additional six month terms until they are paid.

 

On March 14, 2016, Catamaran provided the Company a note loan in the principal amount of $325,000 on terms substantially similar to the previous notes, repayable on receipt of a bridge loan from the Company’s majority shareholder. On March 30, 2016, Catamaran provided the Company with another note loan in the principal amount of $75,000 on terms similar to the previous note.