Remote Dynamics Inc (RMTD)

[king oil]

Technically RMTD didn't sell off the assets. RMTD didn't pay it's bills. So, the creditors foreclosed on RMTD's debt and sold the assets that were held in collateral. (details below)

While legal, certain people very likely benefitted from the transaction. Mimi and David Walters come to mind. There have been similar allegations: http://articles.latimes.com/2012/jun/23/local/la-me-walters-ethics-20120623


On July 1, 2010, the holders of the Company’s (i) Series A Senior Secured Convertible Promissory Notes, (ii) Original Issue Discount Series A Senior Secured Convertible Promissory Notes, (iii) Series B Senior Secured Convertible Promissory Notes and (iv) Original Issue Discount Series B Senior Secured Convertible Promissory Notes, (collectively, the “Secured Notes”) foreclosed (pursuant to Section 9-620 of the Uniform Commercial Code) on the collateral securing the Company’s obligations under the Secured Notes, including the assets used in the Company’s business operations.

The foreclosure was in full satisfaction of the Company’s obligations under the Secured Notes, which had an outstanding principal amount, exclusive of interest and penalties of $7,618,951. The Company accepted the foreclosure based on, among other things, that (a) there existed material events of default under Secured Notes (including the failure to pay principal amounts when due); (b) all of the indebtedness and other obligations under the Secured Notes were unconditionally owing by the Company without offset, defense or counterclaim; and (c) there was no alternative transaction or source of funding available to the Company that would have permitted it to satisfy its obligations under the Secured Notes.