If a Co-Op has been in troubled status for more than 60 days and has passed its expected completion date and has not made any payment within the last 30 days, we administer an “affirmative vote.”
This vote requires that 50% of the Co-Op’s ownership votes to affirm that the Co-Op should remain active. If the vote does not reach 50% within the specified timeframe, the co-op is “Canceled by Vote.”
Once a Co-Op is cancelled by the backers, the brand has to propose a payment plan to the backers. The backers cast a vote on the proposal and, once accepted by vote, that plan becomes the payback timeline.