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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?

To: Lane Hall-Witt who wrote (3107)	8/4/1998 9:11:00 PM
From: JEFF BERRY	Respond to of 44908

Lane, You have raised good questions with your post #3107 Message 5403457 Why did the S-C Phoenix (herein referred to as the Soros group) offer 20 million to purchase the assets of Phoenix?......It was a good business move considering the cards they were dealt. Here's why: Phoenix as an operational company was rapidly losing money, thus pilfering away assets. The Soros group had just invested 15 million in Phoenix just a little over 11 months prior to the bankruptcy. 7.5 million of this investment was used by Phoenix to purchase a 25% interest in a company controlled by the Soros group. The other 7.5 million was rapidly flowing out of the company in the form of operational losses. Phoenix would thus need additional capital to remain afloat. The Soros group basicly said "enough!". They declined further investment and recommended that Phoenix file bankruptcy. As part of the bankruptcy filing the Soros group offered 20 million for all the assets of Phoenix. The proposal was very favorable to the Soros group and very unfavorable for the common investor. The proposal called for 16 million of the 20 million to be paid to holders of Preferred class C shares. The remaining 4 million would be used toward covering all costs of the bankruptcy.....The leftover amount would be divided among the creditor's. The leftover amount is still up in the air, since the bankruptcy is not yet completely finalized. In fact the stock is still trading on the BB under symbol PHXS. The stock closed today at .017...with 51,842,176 shares of common stock outstanding it has a market cap of $881,316. I guess investors are optimistic that there will at least be a bone left over when all is said and done. What did the Soros group get out of the deal? 1)The Soros group owned the Preferred Class C shares. Thus they get 16 million of the 20 million put back in their own pocket. What did the remaining 4 million give them? 2)They get ALL the assets of the Phoenix Group of company's. The principal assets being: a)The 70% interest that Phoenix owned in a joint venture with China Southern Airlines b)The 25% interest that Phoenix owned in American Aviation LTD. (a company controlled by the Soros group for which Phoenix had just paid 7.5 million the previous Dec. to acquire.) 3)A blood clot!...They were able to "stop the bleeding" as it were of further asset erosion. All of this they were able to do, while eliminating all liabilities and future claims to their acquired assets. Pretty sweet deal for the Soros Group......Considering the circumstances. Bad deal for the common shareholder. Best Regards, JAB