Case

Please read the following case scenario and answer the following questions:


CASE SCENARIO: COFFEE AND MORE
Scenario
a. Coffee and More (Coffee), a corporation that is not publicly traded, owns and operates ten coffeehouses in Your State, U.S.A. The company has been in business for eight years. Each Coffee and More store sells gourmet coffee (brewed only), pastries, bagels, compact discs, and books. Coffee also offers Internet connections for customers to access their e-mail.
b. During the sixth and seventh years of business, Coffee and More showed profit and growth possibilities. However, the overall economic conditions in the market place made year eight a struggle. The price of coffee increased and there was more competition.
c. The product is still viable. If Coffee wants to stay in business, however, changes must be made. Otherwise, bankruptcy is looming in the future.
d. The corporation has assets that consist of real property (land and building that house the main coffee house and corporate headquarters), equipment, inventory, accounts receivable, modest holdings, and cash accounts. The majority of the assets are not liquid. The real property is mortgaged and used as collateral on two other secured credit transactions. There is also some unsecured debt. Liabilities include leased equipment and building leases for the other nine locations. Other debts include accounts payable, the usual overhead, as well as benefit and payroll expenses.


Question:

Earlier this year, Coffee and More hired a contractor to make some repairs on the corporate headquarters. Coffee received lien notices from subcontractors hired by the general contractor, stating that they had a lien on the building for the amount of their services. Coffee paid the general contractor for the completed work three months ago, but never received lien releases. Explain the types of liens involved, the reasons the liens were put in place, and what steps need to be taken to obtain the releases.