Baxano Surgical, Inc fka BAXSQ

[wiseassowl]

I believe Hercules agreed to pay DIP financing for the entire post-petition period -- I'd have to check the court docs to be sure. If so, should last until the Chapter 11 plan is presented (assuming no Chapter 7) and the case closes.

If a miracle happens and equity is retained, shareholders would certainly see their holdings diminished. When issuing shares of the new company, Baxano would have to make room for the creditors it couldn't pay.

Yes, in theory it is very good that Baxano paid off Hercules. They made good on their loan. You could go further and argue that everything in this case has gone very well (except the proceeds from the asset sale).

But, I'm not expecting much to happen here, honestly. I'm pretty sure everything of value has been sold or will be sold.