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Microcap & Penny Stocks : Advance Gaming Technologies Inc. (AGTI) -- Ignore unavailable to you. Want to Upgrade?

To: Jeffry K. Smith who wrote (4380)	2/8/1999 2:29:00 PM
From: tgs59	Read Replies (1) \| Respond to 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