EFTA Document EFTA01881680

To: jeevacationftmail.com[jeevacationepgmail.com] From: Paul Prosperi Sent Tue 5/15/2012 8:59:44 PM Subject: Swanson and redux Swanson is nearing the end of his leash. He got an extension for the first mortgage of $21,235,000 held by TD Bank until the end of next month. To do so, he added a third mortgage for $1,000,000 held by the existing second mortgagee (New Providence Capital Partners II -a Bahamian fund run by David Kosoy) to cover the interest due to TD. This is in addition to the existing second held by New Providence for S5,332,692. The second and third mortgages arc due on December 27, 2012 - an academic date if the first goes into default. Swanson and his wife guaranteed these. The three mortgages total $27,567,692. In addition, Swanson and his wife added a $1,200,000 second to their house and adjacent lot in Phipps Estates junior to a $6,000,000 first mortgage held by Northern. They used this for taxes and operating money. This mortgage is held by Footbridge Capital (of Darien, CT) which he used a broker to find. It will be due if Swanson defaults on any other financial obligation. Foothill is related to Old Hill Partners founded by John C Howe. Swanson's marketing strategy this season was to lower the listing price of 1220 to $74,000,000 but have McCann call a few top brokers and say that he'd sell in the $50s. I dont think he has drawn any offers. Swanson is now in panic and told McCann a few weeks ago to call around and say "now is the time to make a good offer". Nothing has happened. My researched opinion is that, if Swanson were out and there was no blood in the water, and the house were staged with some paint, furniture and new cabinetry, it would sell for $38,000,000 to $40,000,000 within a year. Let me know if you have any interest in pursuing this. EFTA_R1_00294714 EFTA01881680