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Strategies & Market Trends : The Aristocrats (tm)

NNVC 1.850

-2.6%

Nov 7 9:30 AM EST

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To: sense who wrote (3768)	5/13/2022 3:49:44 PM
From: sense	1 Recommendation Recommended By Zilyunz Read Replies (1) of 5610

Among the issues for the court... It appears JENGQ is a viable business right now... that should not be under court protection. Would obviously be viable given any proper accounting... not discounting future earnings based on burning the value of current holders equity in order to subsidize consumers power bills... to benefit future holders... So, the "court protection" seems it is not protecting "the future viability of the business"... but something else... The court protecting management's plan for how to best optimize their own benefit... is not a legitimate purpose of the court... when the business as it exists is not only "viable" but profitable... with some outsized assets that are not being accounted for... I have not seen any accounting that even proves there is a need for an infusion of $192 million in new investment... much less at the valuation they propose... as it appears to serve no legitimate purpose other than enabling PIMCO to mask the costs of converting BOTH their existing equity and their debt into new equity... Without fabricating a need for $192 million in new investment... PIMCO could not and would not justify "giving away" their 30% equity interest ? That drives the need for the two tiered valuation scheme... that has 80% of the company valued at $192 million... and 10% of the company valued at $208 million ? The value of the debt... is also plummeting as interest rates rise.... so, equity is being held hostage to debt... where there is no legitimate purpose for doing so. Protecting lenders interest FROM bankruptcy... is not the same thing as protecting lenders interest... from market forces... This court has erred in both instances... first in allowing the company to price its products below the market... which might be a rational business strategy... but it is not... when that "strategy" operates to effect changes in ownership that would not occur without it... when that is not necessary to enable the business in surviving... and, second, in allowing the lenders to use the process to insulate themselves, only, not from business risks in the normal course that have proven unsustainable... but to protect themselves from MARKET risks... in the value of the debt...

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