All - For those of you who didn't see the results of the 7 April Meeting for the Creditors, held by the U.S. Trustee, there was a very revealing result. An adjournment. Why? There wasn't a quorum of creditors!
While no doubt Gary Stern could more professionally comment on that - regarding the frequency that an adjournment actually occurs for a first time meeting of the alleged creditors, and for a company that CLAIMS to have nearly $8mm in debt! Consider.. the trade debt was alleged to have been over $3mm, while the secured debts at over $3mm, together with odd debts at about $1mm - and then no one, or not enough creditors turn up!! Makes you wonder whether some of those numbers are a bit suspect, doesn't it? Well, let me simply say that they're not only suspect, but frankly wildly overstated.. I'll footnote that in due course.
Again for those of you who haven't decided to follow the excellent and clear instructions for writing to the S.E.C., this may help you decide. The Court filings for 1 April included a proposed budget by the man who spends most of his time selling used cars in Dayton, Ohio. The Revenue figures for the pro-forma month (what is believed to be about 3 - 4 months out)on the single page are shown as a prospective $800,000! Does that tell any of you anything? Bankruptcy - presumed to have been mandatory (BY WHOM?) handled in the most appallingly naive fashion on 27 February, and then a mere six weeks later, an allegedly realistic projection for nearly a million dollars a month in revenue!
Some of you have been invested in this Company for years, and you could have added the aggregate income during that period quicker than figuring your daughter's piggy bank savings. Now, as the company looks on the edge of reporting the coming twelve months at $9.6mm in revenue, you are being relieved of your stake by a group who alledge that only by relieving you of your investment can the company become viable. Seems to me someone's been smoking something, or is it just the White House morality (or lack of it) filtering down to the common folks? (That, by the way is NOT a political comment, just observation, on both fronts) |
