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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (3932)	10/13/1998 8:46:00 AM
From: Frank Brisebois	Read Replies (1) \| Respond to of 4571

Linda: <<What happens to us shareholders if they liquidate? And what happens to us shareholders if they do go CH 11? Thanks for any information.>> 1. If they liquidate! They can't as the county seized all their assets. 2. They can't go CH 11, as they have NO MONEY ($50K to file) to go CH 11. As it stands now, it looks like JC will simply delist from NASDAQ and close it's door. Kiss your money bye bye.. Alas poor us..... Frank

To: Linda Kaplan who wrote (3932)	10/13/1998 10:47:00 PM
From: DDS-OMS	Read Replies (1) \| Respond to of 4571

Linda, I thought you got out of BCMD long ago. <<What happens to us shareholders if they liquidate? And what happens to us shareholders if they do go CH 11? Thanks for any information.>> Several posters have answered you already, but let me add a few thoughts. First, Chap 11 is for reorganization with the intention of resuming business if a plan can be offered for a way to satisfy creditors and resume business. Creditors may settle for much less than is owed them because something is better than nothing. BCMD has value to a merger partner such as its listing on NASDAQ--worth maybe $250K--and its tax-loss carryforward of some $40 million. To a company whose profits are taxed at 39%, a $40,000,000 tax deduction would be worth $15,600,000. Not that they would pay this much for it, but it is worth that nevertheless. So a merger partner is not out of the realm of possibility--but I believe BCMD will never mine gold again--it could become part of any successful business endeavor, given a new name, and current shareholders given some small amount of stock or warrants in the newly merged company. At 3 or 6 cents per share, this is a plausible risk to take--and could account for some of the buyers seen yesterday and today. I MIGHT gamble for 1/32 per share if Chapin can raise the cost of filing Chap 11. Offsetting the tax losses and listing value is that any company that merged with BCMD would also assume liabilities such as EPA cleanup costs --IF ANY--and potential lawsuits. A way to avoid these openended liabilities would have to be found before any merger partner would sign on. Forget about a Chap 7 filing for liquidation--it also costs money to file and since there would be nothing left after creditors are satisfied, there is no incentive to file Chap 7--instead just walk away and shut the doors. Why are you so hostile toward "management"? Being a poor businessman or failing is not a reason for "jail"--just as there are no debtors prisons any longer. IMO, Chapin did nothing illegal--he just failed. Regards, Gary