There have been some inferences/suggestions and I have had some conversations with several folks that have been concerned that this
filings are what is/will be the cause of FS closing down and folks losing out on everything.
Let’s be absolutely clear here: As far back as last November 2021, IP/FS was facing a foreclosure action that had already been filed. It was in the making for several years at that point in time, It was moving forward. IP was trying to stop it and filed a Stay. IP started
fundraising by offering Knight memberships long before that when he was facing foreclosure.
THEN in January 2022, IP introduced the debacle of Gold Status or losing memberships. IP saw the writing on the wall … This was another
fundraising attempt. It failed when an overwhelming number of members balked. Many were banned for their disagreement. Some folks decided to pay up and upgrade. Now they are being asked to upgrade even more. Regardless of whether you did or did not upgrade, you still did not get to keep or have available all of your original
assets or membership level benefits as you had prior to November 2021.
THEN on March 1, the court denied the Stay and the foreclosure action continued to move forward. It will probably be finalized in the next few months. The only way to suspend that or slow it down is for IP to come up with $11m.
EVEN if no one had balked at the unilateral takeover AND folks had decided to anti up more money, it still would not have been enough to stop a foregone conclusion: FS WILL be foreclosed upon sometime in the next 6 months. The land/facility might be worth $4-5 million if put up for auction. IP got a $6.5m high-interest speculative loan that is now at $11m in principal/interest/penalties. IP does not have (or does not want to dip into his own pockets) that much cash and it does not appear anyone nor any bank will loan him that at this time to restructure and satisfy the loan. Otherwise, he would have paid it and we would not be having this discussion. Simple.
IP does not have $11.5m in collateral value at this facility. IP is not going to put up his personal assets as collateral. IP is simply trying to get as much cash as possible now. He might face criminal fraud and other financial crimes, where his personal assets are not protected. So, he wants to use your assets to protect his assets.
BUT make no bones about this: your membership has no value/worth in a civil action/complaint, regardless of how much you have paid. When this is all over, all members are on the same ground: we all have nothing to show, other than our training experiences at FS. You are last in line over all the other creditors. AND there is not enough money to pay all of those creditors off. SO the membership is left with nothing but empty promises and worthless paper memberships.
ONLY if a criminal fraud/financial action is successful, will anyone with a membership get any recovery, and possibly save FS. The best course of action is to pay back the creditors with money WE/YOU have already paid IP/FS, from IP’s personal pockets. That’s where a lot of it went anyway … So, you see that the best course of action is criminal/fraud/financial crimes.
It also appears that the creditors have no real interest in turning FS property into something else. They are not trying to take it or steal it. The lead abatement alone is a multi-decade nightmare/debacle. And there is plenty of other land around to buy in the desert that can be developed into worthwhile use. The only real asset on FS is the water well. That can be easily drilled anywhere.
— Gary Short