BLACKSTAR ENTERPRISE GROUP, INC.: debt financing — BlackStar files counterclaims in Nev. lawsuit; plaintiff seeks 257M share conversion

BLACKSTAR ENTERPRISE GROUP, INC.

On Feb 27, 2024, BlackStar filed answer and counterclaims against plaintiff GS Capital Partners in Nevada lawsuit.
Plaintiff seeks specific performance to convert ~257,000,000 shares on a note with remaining principal of $33,682.
Company alleges plaintiff recovered ~$600,000 in stock on a $60,000 note (170% effective interest) in violation of usury laws.
Risks include need to increase authorized shares to accommodate conversions and negative impact on financial position.
Litigation increases financial and administrative burdens and exposes company to further lawsuits.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.4

BLACKSTAR ENTERPRISE GROUP, INC. reported a default on convertible notes of remaining principal balance of $33,682 with GS Capital Partners LLC at roughly 170% interest rate.

Instrument: convertible notes
Principal: remaining principal balance of $33,682
Counterparty: GS Capital Partners LLC
Rate: roughly 170% interest rate
Event: default

Exact text from the filing

of shares to convert against the remaining principal and interest on a Promissory Note entered into on October 11, 2021, which had a remaining principal balance of $33,682. At the outset of the case, a temporary restraining order was entered preventing the Company from trading any shares. As currently postured, Plaintiff seeks specific performance

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Source: SEC EDGAR

accession 0001065949-24-000023

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