Wednesday, October 2, 2013

$282 Million for Company With Over $500 Million in Defaulted Bonds, $560,000 in Unpaid Judgments

How could you pay $282 million for the common stock of a company whose creditors have taken it to court, gotten a judgment, remain unpaid, and whose board members have resigned citing "severe cash flow drain with unclear prospect of securing new capital," "failure to pay outside legal counsel," and "potential erosion of internal controls"?

3 comments:

Anonymous said...

When you can receive .16/month in lending fees and nothing that will make the stock go to zero.

Anonymous said...

A preview of STP?

http://www.sec.gov/litigation/litreleases/2013/lr22833.htm?utm_source=twitterfeed&utm_medium=twitter

Goodluck collecting..

PD said...

this doesn't make sense, why would it be worth $2million, i mean the bid ask should blow out and make the equity pretty much worthless...