MUCHNICK, GOLIEB & GOLIEB,
MEMORANDUM
TO: Steve Hanson
FROM: Howard W. Muchnick
SUBJECT: Life Hotel: Monies Needed
DATE: July 7, 2017
Monies Available (All amounts in millions)
New Loan Amount $40
Existing Loan 36
New Money $4.0
Application of New Money:
Fund interest and Operating Reserve (2)
Held back until EBITA of 3.8 million is attained
Balance: Available to Life Hotel;
None will be used for loan repayment 1
Remaining cash from existing loan .2
Additional monies that David believes the bank will
make available due to the additional rooms
Projected Cash Availability 1.7
Cash Needs
Required to complete construction 2.2
Less reduction in contingency amount and deferred (.2)
payment
Mortgage recording tax .1
Fees: Miscellaneous .2
Construction 2.3
Accounts payable' .45
Restaurant needs2 .9
Less: .2 from each of David and you f,4j
.5
3.25 3.25
Cash Needs 1.55
HWM
HWM/el
PACLIENTS100000394NIEMOU0IAmonicsneedcd.0707.docx
David believes the amount is $300,000 and that he can have the amount of $50,000 paid monthly from the
operating reserve.
David believes its $.661
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