SVCDQ stockholders have set a course to start with a motion to have a stockholders committee in front of a bankruptcy judge on April 4th, 2000.
In the mean time, Robert Prevost is in Tenn. for a week to case the joint and perhaps get a feeling for the Business plan 2000 of service Merchandise management. A hired lawyer may have to get the summary of what the stockholders really, really, really, really, really want?
The choice is not that obvious, because bankruptcy has traditions. Cash is king. And the DIP has cash from Fleet to last until April, 2000. What more cash SVCDQ can raise is what Mr Prevost as a business owner has to ask? How much if and when GAP takes sublease, will SVCDQ receive? Is there, any buyers of SVCDQ out there? Will servicemerchandise.com have an IPO by Robertson, Stevens? Will the Service real estate venture have a buyer, for all or part of the holdings, by national real estate tycoons? And the most important question is, if the plan works and SVCDQ is flushed with cash, will the stockholders still be locked out of the reorganization plan?
That last question is what the stockholders, really, really, really, really, really want the management to reconsider. Afterall, the lack of cash put SVCDQ into chapter 11. The surplus of cash, and wiped out debts in the reorganization plan by issuing new stock, will give SVCDQ a new lease in life with the patient and loyal stockholders who had the better plan executed and rewarded accordingly. |
