ECCA Agreement extended to March 2

Well, if the tension wasn't already building in GERS investor land, we just took it up a notch.

The ECCA Agreement originally provided that CleanBioenergy could terminate the ECCA Agreement if the Initial Equity Contribution Date had not occurred by January 30, 2009. The Amendment extended that date to March 2, 2009.
http://www.sec.gov/Archives/edgar/data/1269127/000126912709000002/gers8k2309.txt

The agreement is between these four elements, with no hint of which, what or who was not quite ready:

GS Adrian
Biofuel Industries Group
GS NextDiesel
CleanBioenergy Partners, LLC,

The SkunK sees this as a minor delay to a much anticipated event. If our funding partners had second thoughts and were not going to finance, they would have simply used this delay as an excuse to bail out of the agreement. Instead, they signed into a significant extension. I see this as a strong commitment. For whatever reason for the delay, GE financial was given a chance to walk away and they instead recommitted to the deal with a thirty day extension.

I do not expect this to continue through the entire 30 days of the extension. I believe they may have needed a couple weeks and so they asked for a month. That way if something unexpected came up and they needed more time they do not have to ask for another extension. For this reason I would anticipate that they will wrap things up and then close the deal maybe part way through the month. This way they would also generate a little tactical surprise buzz. They did this for the last Annual Report when they took only a small part of the extension. We will see.

SkunK