MLTO Medirect Latino Inc (CE)

MEDirect Latino, Inc. (Pink Sheets:MLTO) today announced that its lenders have concluded foreclosure proceedings and have sold the Company�s assets under the Uniform Commercial Code. Under its Loan Agreement, the Company had pledged all of its assets as collateral. In October 2007 the Company announced that it failed to make interest payments to its lenders and in November 2007 announced that it was unable to cure the default and would cooperate with the lenders in connection with the disposition of their collateral. The unpaid principal and accrued interest on the loans were approximately $6.7 million and $504,000 respectively. The foreclosure leaves the lenders with a substantial deficit. The Company also announced the resignation of Charles W. Hansen III, its CEO and only remaining member of the Board of Directors, effective today.