EFTA00833714.pdf

From: Jennie Enterprise To: Jeffrey Epstein <[email protected]> Subject: Fwd: Debt Treatment, NOL's and Revised Pro-Forma Balance Sheet Date: Sun, 21 Feb 2016 20:41:25 +0000 Attachments: Cancellation of Debt_-_RFR_-_FM_Debt_Analysis-updated_2.16.16.xlsx; CORE_-Pro- Forma Balance_Sheetn Revised_2.16.16.pdf Inline-Images: EWLarge2.jpg; image001.png juts fyi CORE: Jennie Enterprise nclenter ri F under & Chairman 66 East 55th Street New York NY 10022 I Main: www.coreaccess.ne Begin forwarded message: From: Daniel Rabia <Daniel.Rabiagcoreaccess.net> Subject: Debt Treatment, NOL's and Revised Pro-Forma Balance Sheet Date: February 18, 2016 at 9:08:03 PM EST To: Russell Stein Cc: Nicholas Dykstra , Max Cole , "Cori Flanders" >, Jennie Enterprise Hi Russ, We had a call with our accounting and tax parties and with respect to COD and the debt treatment of both the rent forbearance event and the FM notes. The attached debt table and revised pro-forma balance sheet reflect the following: a. TCCI can report 1000/0 of the CODI on the AES debt and RFD rent in the period before the purchase of RFD's interests, and allocate this CODI to all current members including RFD by requiring the closing of the books method of accounting in the Purchase and Sale Agreement and by using that method of accounting. TCCI is not required to delay the recognition of CODI on the RFD rent until the rent nonpayment and bankruptcy conditions expire, because these conditions are contingent and within TCCI's control. b. We have negotiated settlements with the members holding about $22,000,000 of the $26,000,000 of Founder's Debt. More may be completed before the closing of this transaction. TCCI can recognize this CODI in the period before the purchase of RFD's interests, and allocate the CODI to all current members including RFD by using the closing of the books method of accounting. This means that most of the CODI will be recognized by the current shareholders, including RFD. The CODI recognized by RFD before the closing of this transaction will not be required to be recognized by Jennie Enterprise and the Investor afterwards. Some Founder's Debt will remain, but a relatively small portion. The deal documents and the structure chart will be sent to you and the team tomorrow. We hope this addresses your concern with respect to the COD issues and are available to review further. EFTA00833714 Kind Regards, Daniel CORE: • * • • w York NY cores u t ecorec u A CORE: twitter is now live! Keep up to date on everything CORE: at @coreclub CORE: upcoming events Performance MIND TRAVEL Murray Hidary I February 4th, 6:30pm Screening Don't Stop Believin'-Everyman's Journey I February 5, 9:00pm Screening Super Bowl 50 Tailgate Viewing Party I February 7, 6:00pm Conversation Stroke of Genius: An Evening with Dr. John Krakauer How Video Gaming and Robotics May Promote Stroke Recovery Union Society I February 8, 6:00pm Art/Conversation A Chinese New Year Celebration: Year of the Monkey Featuring Artist Kelly liayi Wang February 8, 6:30pm Conversation A Climate of Innovation Hosted by The Nature Conservancy I February 9, 6:00pm Art The Armory Show VIP Access: I March 02, 6:00pm Space is limited. For reservations/info call 212-486-6600 or reservations coreaccess.net Recent Press: 9 Successful People Share the Smartest Thing They Have Ever Done With Their Money Business Insider December 2015 CORE:10 Gala Gotham Magazine j September 2015 How the 1 Percent Works Out Fox Business I August 2015 EFTA00833715