I am certainly not a BK guru but in my opinion a chapter 11 gave them more flexibility and the appearance of some sort of leverage in negotiations. Which seems to be the modus operandi of quite a few bankrutcies, hell even Lehman went chapter 11 and that thing was so underwater it wasn't even funny. Ultimately when the POR comes out in June, my opinion is that it will be a shares cancelled and a $1.50'ish per share disbursement. I don't believe there is any mystery behind this as to a reorganized company coming out of this and doing business whether it be textiles or any other thing for that matter. These guys arent the "magical" typical otc pink player that change their business direction every year or so, like so many of the hustlers down there seem to do. There selling off everything and getting more than what they had for book value on the summary schedule. I think they gave up the ghost so to speak when they realized how shitty it is to trade on the OTC's. I see this also as another reason they gave Robotti a board position, so they could participate in the unwinding. As a shareholder only, material information would not have been privy to them. At which point we definitely would of seen an equity committee. I am pretty confident in the way this will pan out. Every thing will be sold off at a premium to book value no less. In early may they have those RV BK claims to deal with and then probably all the other administrative stuff. After that the POR which I think will be accepted by the creditors as they will have plenty of liquidity to make them whole. Like I said earlier in this post my guesstimate is $ 1.50 per share.
