Termination with DBSI--Time if of the Essence!

Our lawyers who represent a dozen or so TICS as well as lawyers around the country who represent scores more plan to terminate the master lease with DBSI tomorrow. DBSI has announced that they intend to file for bankruptcy on the 12th. The lawyers will be in court Monday. Thus we will be out from under the DBSI bankruptcy before they file.

To do this we must distribute ballots to the TICs in order to 1) agree to terminate the Master lease (50% required); and 2) replace the Master lease with a property manager and asset manager (100% required).

The lawyers have contacted the banks. They agree to the scheme as they do not want their mortgage payments compromised by bankruptcy. The banks want us to come up with a property manager and asset manager. CB Richard Ellis is probably best for property manager--they get roughly2%. The asset manager who is working with the lawyers is looking for .75% and will work month to month. We can fire him any time. But in the meantime having the asset manager in place will expedite the change over.

You will get ballots later today with instructions. Be advised we need to do this by the end of the day today in order to get this done before DBSI declares bankruptcy.