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Microcap & Penny Stocks : Advance Gaming Technologies Inc. (AGTI)
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To: Jeffry K. Smith who wrote (4380)2/8/1999 2:29:00 PM
From: tgs59  Read Replies (1) of 4539
 
Jeffry K. Smith

Under either a Chapter 11 reorganization or chapter 13 liquidation there are priority claims on assets, which is established under federal bankruptcy laws. I do not remember the exact order, but secured creditors are first, then probably employee claims, then tax issues, followed by unsecured creditors. Even in a chapter 11, these claimants must sign off on any reorganization. Sometimes stockholders are left with a portion of their investment, though this is usually when it is an important or key person involved. Regardless of the above priority a post BK (after Bankruptcy) financing has the highest claim on the company. I believe that AGTI creditors will consider Dan Scott a key to turning the company around and he will be well positioned to control the company upon reorganization. Unfortunately this does not bode well for the current equity holders.

I hope this helps.

tgs59

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