Excel Corporation (EXCC)

[Stanson]

You have absolutely no idea how this works. EXCC doesn't get to choose if they are in default or not. They cannot refuse to pay additional interest. The lender is not "making assumptions". It is very simple, they are in default of their loan agreement, the lender has refused to lend them additional money, and has moved to recoup their money through the sale of the business.

A buyout would not be a "jackpot" for shareholders, it means a liquidation of assets to the highest bidder for pennies on the dollar so the lender can recoup their money. Look at the capital structure of the Company. They have tangible assets of ~$8mm, they owe the bank ~$13mm. It doesn't take a math wiz to figure out that the shareholders would be left with NOTHING. Even if you look at straight book value of the equity, it is -$1.8mm and dropped $1.5mm since 12/31/16.

The bank is calling the shots here. That's what happens when a company is in default, they don't have a choice in what happens. The bank takes over and tries to recover their money.