I am not so sure the loans are secured now, and perhaps appear to be subject to the earn-out agreement.  So it is possible that they only get paid off over time based on the entity's performance and beyond that there is no recourse for the 'junior'.  Almost appears as if we got in the drivers seat when we foreclosed against the security and then a deal was struck between all 3 remaining parties which frankly was best for all:  those able to make a go of the assets/technology run with it, with little dowside risk, the junior gets a percent of the upside, and we get a significant ownership percentage.  I'm not so sure we didn't just step into something pretty decent, but then again its about midnight and its been a long day.  I am not concerned, rather somewhat excited and looking for further clarification.