SGCC Purchase Agreement – What Next?

Somersett United
Somersett United

Following lifting of the Temporary Restraining Order (see previous post) the SOA Board was permitted to continue counting the SGCC Purchase Agreement ballots, under which a majority approval (i.e., ratification) was obtained as reported in the SOA’s “Somersett Happenings” newsletter as well as on the SOA website.

What remains to be accomplished?

  • Due Diligence – Per Section 6.1 of the Purchase Agreement, the SOA has 90 days after “Opening of Escrow” to complete their due diligence activities. Since “Opening of Escrow” occurred on October 8 the due diligence period will end on or about January 6. Note that the SOA may terminate the agreement any tine for any reason during this period.
  •  Loan Procurement – No knowledge if this has actually been accomplished and under what terms.
  • Inspection and Tests – Per Section 6.2 of the Purchase Agreement, up to the close of escrow, the SOA may enter the SGCC property to conduct whatever tests or inspections they deem necessary. No available information as to what the BOD may be planning in this regard.
  • Close of Escrow – Per Section 5.3 of the Purchase Agreement, escrow shall close 15 days following the later of: a) expiration of due diligence period, or b) within 90 days after ratification (which occurred on or about December 22); provided close of escrow shall not occur later than December 31, 2014, i.e., the “Outside Date”. Agreement conditions further state that if ratification does not occur within 60 days of the “Opening of Escrow” date, or close of escrow has not occurred by the December 31 “Outside Date”, then the agreement will immediately terminate.

The SOA BOD has not published any status on if and when the due diligence actives will be completed. Also, it appears obvious that the close of escrow “Outside Date” of December 31 will not be realized. To circumvent the immediate termination provision of the Purchase Agreement, these conditional dates will have to be modified, which would require approval of both parties and presumably before December 31.

To date the BOD has been publically silent on the preceding activities. Perhaps a BOD member reading this blog could provide a status report, if not here, perhaps via email newsletter or on the SOA website.