According to the morning paper, XCOR filed chapter 7. And only now is the Midland Development Corporation scrambling to perfect a security interest in personal property that the MDC financed. Here are the sad facts from said article:
Hilliard told the Reporter-Telegram on Thursday that the economic development group is attempting to get a collateralized security interest in XCOR. The MDC took the step of filing uniform commercial code (UCC) financing statements with the Texas, California and Florida secretaries of state Wednesday.
Per the MDC’s contract with XCOR, incentive money was paid upfront without collateral. The deal predates Hilliard’s involvement with the MDC.
Perfecting a security interest is one of the FIRST things you do, not the LAST.
Oh, what the hell. Midland got lots of good, nationwide publicity when they announced the deal. There was no steak, but there was lot's of sizzle. As I've said in this blog in the past, that was the payoff. Too bad that was all we got, but it will have to do.
Oh yeah, I guess I should mention this group of winners. The lawyers involved in this fiasco will make out OK. So not everyone lost.
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8:47 AM 11/11/2017
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