So, there seems to be a convertible debt instrument here after all. Too bad, I really hate it when the things dilute my stock. I'd love to be a holder of such an instrument though. Perhaps I'll go talk to my banker. There doesn't seem to be any shortage of broke companies and optimistic speculators.
Below an example of how a management cuts its throat trying to get rid of a financial headache.
Best regards,
Baldur F.
<<<<<<<<<All American Food Group Files for Protection from Creditors
SOUTH PLAINFIELD, N.J.--(BUSINESS WIRE)--Nov. 30, 1998--All American
Food Group, Inc. (OTC BB: AAFG), announced today that it has decided to seek
protection from its creditors by filing a Chapter 11 bankruptcy petition in Federal Court
in Newark, NJ. The filing was made necessary by a combination of factors, primarily
relating to a series of convertible securities issued by the company during the previous
12 months.
According to the Company, the conversion of these securities pushed the Company's
common stock into a downward spiral, which made it impossible for the Company to
raise the additional capital it needed to implement its business plan. As a result of its
inability to raise outside capital at a time when the company had not yet achieved a
profitable level of operations, the Company is in default with its secured creditors and
Convertible Debenture holders, as well as behind in payments to its vendors and
suppliers. The Company believes that by operating under the protection of the
bankruptcy court, it will be able to successfully reorganize its affairs, and emerge as a
viable and profitable food service company.
The production and delivery of the Company's proprietary bagels is not affected by the
filing; the bagels are manufactured to the Company's specifications by an outside
contractor, and franchisees and licensees can be assured that the supply of bagels will
be uninterrupted.
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