$def_coy = 1;
$tb_pref_counter = 2;
I went in and programmatically changed it to a $def_coy = 0; this seems to fix the problem.
Nevertheless, it appears that this is a bug because there is the possibility to have the user get into a situation where they may not be able log in.
There is an option to select which is your start up company and when this is set other than 0 it will create this problem. (BUG)