Allegheny told us that we may be in default of the tolling agreement.  As part of that agreement, we had an obligation to deliver security agreements by July 31.  We have fulfilled that obligation but now Allegheny is saying that they are not in the appropriate form.  Legal believes that they do not have any basis for this claim.  Nevertheless this is a major problem given the exposure - we have commited to construct the project and to sell the project.  I do not know if they are negotiating hard or trying to blow up the deal.  We will likely need your time on this matter and we may need to respond quickly - possible fixes include modifying the ground lease in a way that would require us to take out the project lender on LVI.   



Chris Calger
503-464-3735