Fastcomm FSCX (6 1/8), base now complete. Big Upside. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Fastcomm FSCX (6 1/8), base now complete. Big Upside.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robet Butkus who wrote (584)	6/3/1998 11:24:00 AM
From: Rick Smith	Read Replies (3) of 802

Strategy seems to have backfired for Plaintiff, and worked for FSCX... MAYBE. As I hear it, the moron (Gary Davidson, Plaintiff with a $1 million judgement) and his attorney tried to hit the bank accounts of FSCX in an attempt to collect the judgement. Madsen had stated repeatedly that he would file for protection if that occurred. Well, now it's done. And the judgement will be appealed and hopefully overturned by a judge that understands the case better than that Jury. I'm told that FSCX can even go back to the other Plaintiff that they've already settled with a get that settlement money back. There seems to be a 15 day window starting yesterday, for Davidson to accept a settlement. If that were to occur the Chapter 11 Filing would be dismissed, and everything would go forward, business as usual, from there. Apparantly Davidson didn't believe that Madsen would file for protection. Now if Davidson holds his present course he won't get much if anything and it will cost him a ton of legal fees for his new attorney who won't be working on a contingency basis like his current one is. Bankruptcy Law is interesting in that it protects the debtor more than it does the creditors. And Davidson will have to hire a specialist in this area to pursue any collections from FSCX. And that's going to cost him some big $$! There seem to be several scenerios that could play out here. The worst case is that the company has to reorganize and issue a new class of share to any existing shareholders. Business goes forward but suffers under the stigma of Bankruptcy, unless as I understand it, it's customers understand fully what's going on and are willing to go forward on their contracts. The best case seems to be that Davidson has a sudden change of heart. prompted in part by his attorney, who working on a contingency basis, now stand to get NO LEGAL FEES paid to her whatsoever. And then FSCX basically cancels it's Chapter 11 filing and moves on down the road. I think it's a real coin toss as to what happens. But in 14 more days we will have a good idea what lays ahead. It's a shame that we're having to go through with this. But as I've said in the past. It is a viable strategy, given the situation. Good Luck to us all. R..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next