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So if they had a normal AR credit line paying 7%, what would the interest paid over a one year period?????
Then why did the NY Banks say NO to SPNG asset based lending proposal?
The Twins never talked about factoring at the Noble. They discuss a normal banking relationship extensively at the Noble, issued PRs about Lines of credit pending and issued warnings about not getting a AR and inventory line of credit and its effect on the company.
The cash position of SPNG is very bad, and I have "cash flow" projections to prove it. Mosky's warning was right on the money. They have to deal with upfront financing of the production line, finished goods and the hellish AR wait on the Big Boxes. Who take take their sweet time to pay. They set the terms, not the suppliers. Need proof, just ask Metter. He said as much to the Rangers in the MSG case. And I'm sure he wouldn't lie.
Lawsuits, legal fees, margin problems, hiding the filings, no shareholder updates and no normal banking relationship. All equal major financial problems.
And proof of this is the current situation regarding shareholders, and the lack of information. I have a feeling Rochester Chemical, Dow and whoever want cash upfront. 120-150 day cash flow cycle is tough, maybe too tough for our Professional Stock Promoters.
And for the last 10 months, all you hear from the Pumpers is "WOW, and NO DEBT". And having "No Debt" will kill this company.
They could actually be making a profit, but file for protection to get their house in order.
Its only the 19th time since August 09. Maybe it'll work this time. Place your bets.
The Wonderful World of Entertainment.
Whether its Team "Low Vol" or Team "High Vol", there's always a logical and wonderful reason for buying SPNG stock.
Because he was wrong. Before he can get to the SPNG books and records, the judge would want his numbers and the the related logic behind his statement. It's not an easy task to convince a Judge that "If you let me look at the other guys records, I'll prove myself 100% correct". Never gonna happen. He was dead in the water. Why fight it.
But Rosen is another matter. Rumor has it, the CPA he retained is a real bitch. She's (or he) gonna want the numbers and logic backing up Management's PRs, 8ks and whatever.
Rosen can't wait for the "games to begin". He's hoping the SEC has already done all the work. I have no doubt they have.
In both cases, someone has to provide proof of why they issued a statement.
Until Management releases information regarding the current status of the Wells/SEC investigation, one has to assume there are major problems. Still looking for $.06. I believe SPNG is a wonderful company, but I need something to read first. Not to much to ask, they do want my cold cash.
April 19th
Just an assumption. If SPNG lied in PRs and about sales, Rosen wins BIG TIME. Pretty simple.
And Rosen loves that news. Just makes his job easier.
Wouldn't this make Rosen's case a slam dunk.
i think its safe to say they lied during their previous PR campaigns. they probably lied about sales as well.
Maybe they didn't sell that much Panther.
No reason to be a smartaxx C dude. Mosky warned you this could happen, and it did happen.
I sold last Aug on the 10k release BS and then again on the Wells/accountant change news. Have a few shares, but basicly waiting for $.06.
This where you've COMPLETELY miss the boat. This process didn't just start over the last 6 months. This dance between the NY Banking Community and the Twins has been an ongoing affair for at least 2 years, well before the SEC involvement and the current lawsuits. And thats a FACT, established by the Twins verbally and via the written word.
The Banks have NEVER been interested in opening a credit line with the Twins, at least not one to support a $50 Million revenue stream, much less a $300 Million one.
This current financing package is a sign that the current "cash flow" situation is SERIOUS. Very serious.
$20 Million for legal fees to date, is my best guess. Do the math (cash flow projections) and the next step can only be one thing.
Well Overboard, the potential "liability from lawsuits and the SEC" is a given, in that the NY Banking community knows all about these matters. This, in itself, would not stop a Bank from at least "kicking the tires". What they are finding is the explanation from the Twins is just unacceptable regarding these matters and others, thus the potential problems down the road are not worth the risk.
JMHO, but I know for a FACT how the process works.
I must read "The Merchant of Venice" again, after the 15th.
Yes I did, and apparently the M&M Twins can't establish a NORMAL banking relationship. And banks are killing themselves to bring in new business. And banks have been given access to SPNG's books and records, and based on the bank's auditors advice, the Twins are getting a big "Thanks, but No Thanks".
JMHO
MinuteMaid Twins now paying Major "Juice". I wonder what the "Vig" cost the dear boys. "Cash flow" must be very serious, selling off assets, to raise cash. Hey, you gotta do what you gotta do.
If they just released the 10s, maybe the MinuteMaid Twins could establish a NORMAL Banking relationship. That would be the bright thing to do. But NO they can't file for some reason. It would be nice to know all the reasons for not filing. Any LIE will do at this stage. But I'm just a shareholder, and I guess that means crapola.
Professional Stock Promoters trying to beat the "cash flow" game all by themselves. How cute.
Let's just hope he's not trying to figure out what he's up to. lol.
LOLOLOL what a mess
Its chap 11, I think. And the Mets, Knicks and CBS have the power to take SPNG into Involuntary Bankruptcy, assuming they win in their lawsuits. They could do it now, but by winning a Judgement in Court they can control the Bankruptcy.
Thats the reason for filing lawsuits. Get a Judgement, and you have more power down the road.
In every bankruptcy creditors are assigned a "priorty" position. (I forget the legal term). The Creditor's Committee is controlled by individuals having a higher position, and thus they control the payout settlement. The dynamics of this Creditors Committee is very interesting. As such; MSG, CBS and Mets will control the Committee if it gets that far. I'm not a lawyer, but have been involved with serveral, and the unsecured guys get screwed because they have no power. They can petition the Judge, but it's a tough road.
A court judgement has a higher priorty than a unsecured creditor, but a lower position than a creditor with a secured interest. I know of no one having a secured interest with SPNG, as of the last issued 10. (But I haven't studied the 10s in a few months.)
The SPNG solution against creditors petitioning the Court (Involuntary Bankruptcy) will be solved on the Courthouse steps.
The question remains, "Why does Metter go thru this process, when he knows he's a loser? Why spend funds on lawyers, court costs and whatever on a sure loser?"
What is Metter's game plan??????? Is "cash flow" that bad???????
He's turning $1-2 Million in Account Payables, into a $2-3 Million libabilty. Buying time maybe, maybe not. He's buying something, identify it and you're a WINNER.
What is he hiding, by not releasing the 10s, must be really BAD or really GOOD. Because the 10s could solve the "cash flow" problem.
JMHO, but the 14.99 sponge, now selling for 3.50, is interesting. And how is Rochester Chemical and DOW Credit managers handling this issue in granting payment terms??? Cash with the PO, could the reason for all these "cash flow" problems. That weekly payroll is a bitch too.
Metter warned the shareholders this would happen, looks like he was right. At least Metter has his azz covered with the retail shareholders.
SPNG is a Private Company, that just happens to trade as a public company. I thought everyone knew this fact.
This is a key fact in this whole process. This fact, plus the identities of the Pike Limited Partners will go a long way in answering a lot of questions about the future of SPNG, and its impact on the retail investor.
Thats why there's an indepentent Bankruptcy Trustee. Sometimes CPAs are appointed in "Involuntary" ones under Chap 11. But usually it's a lawyer, and he has an indepentent CPA as a sidekick.
Either way, management answers to them.
Of course, like you said, IF they file Chapter 11. I don't think they have any plans to file.
I'm talking about the creditors filing the necessary petition with the Court. Only takes 3 creditors. Thats why the lawsuits are filed, so creditors can get position over other unsecured creditors when it come to Bankruptcy proceedings. Winning the lawsuits is one thing, but getting paid is another.
MSG, the Mets and CBS could put SPNG into Bankruptcy, and not a thing Metter and Mosky can do about it.
M&M will NEVER willfully file bankruptcy. NEVER
So the question remains, "Why is Metter allowing this to go forward." Why pay lawyers fees, court costs and whatever for payables that are going to pay anyway??? Makes no sense, unless Metter's game-plan is to....................
And why tell anyone your financial guy is on vacation?????
But thats what you get when you invest in a Private Company????? Can't wait for the next shareholder letter.
No one said SPNG was filing for bankruptcy. Mosky and metter would NEVER do this under present circumstances. NEVER
I disagree. Shareholders do take a backseat, but not wiped out always. Companies emerge from bankruptcy intact all the time, the fact there's no financing debt just helps the process along, and actually helps the SPNG shareholder.
Bankruptcy in regards to SPNG is not the end of the world for SPNG shareholders. Panic selling, yes, but that has no impact on the company taken as a whole.
Post Bankruptcy Balance Sheet, will tell the story. And that of course depends on the Pre Bankruptcy Balance Sheet. And no one knows that, except the guy on vacation. $5-10 million in creditors can be dealt with, but the SEC and Rosen are another matter entirely.
Relax, I'm sure the AP guy will be back from vacation soon enough. I'll bet it's just a matter of the "check's in the mail".
I sure the baseball cap supplier got paid. No need to panic.
The rush to turn a unsecured debt to a secured one is a powerful motive, based on circumstances. The Mutt Bros have a history with the NY legal community and it's not good. Metter did file for Bankruptcy and no doubt some discharged creditors were left "holding the bag". The NY legal community is a "tight group", same with the CPAs. Professionals talk within that community, so who really knows.
The silence by management sure isn't helping. Doesn't really matter; if you're Long, you're not selling; and if you're a buyer, you're not buying. The PPS "slow-motion" dance continues. Plenty of time to make a play.
I think the company has lots of potential and was looking for $.06, but the Stoxmagic comment confirming management accounting fraud is a bit........ whatever.
Is this the same sponage selling at ACE for $14.99???? I think it is. At the local Mall, its $14.99 for the same product (Xmas time at the ASOT store). I call that distrubing.
Sorry, but something is not quite right in SPNG land.
BTW did you write the Book???? Awesome job.
And that's where the Pike's Limited Partners step in and cut a deal. For sure, M&M's family, friends and employees will not be screwed.
Support the PPS for family and friends, buy time to market the product, insure the production line is financially sound and deal with "general and admin" expenses on a "as needed basis". Finance this game-plan with lawyers.
And thats why the Comproller can take a vacation. Just another excuse to buy time.
Whether its the SEC or an Involuntary Backruptcy, this chit storm will blow over eventually. What's left will be in hands of someone related to the family, friends and/or employees of SPNG.
The sales over the next 6 months are critical for the long term well-being of "family, friends and employees". Thats why certain posters go apechit over sales and not the SEC filing BS. It doesn't matter to them, either way they win.
Vegas Baby, except Christy is not part of the group. And what will the SEC say, "Thats what you get when you invest in a Private Company, Dumbazz".
They might be good for the holders of SPNG debt
There's really no financing debt on the SPNG Balance Sheet. In other words, banks or lending institutions. Lots of creditors, and they can be dealt with a "bird in hand" approach. This same approach will be used on the "Non-insider" shareholders (retail guys).
And what's left is a company with family, friends and employees as shareholders. And if this number is low enough, they escape SEC scrutiny in the future. Then the Pike limited partners and the Mutt boys execute their game plan.
But SPNG has a hell of a storm brewing; SEC, Involuntary Bankruptcy and Rosen. But forcing an involuntary bankruptcy could be what they actually want, LOLOLOL but court protection for a year to deal with creditors.
In the meantime, the Chinese sponge guy picks up the slack, and they all meet in Vegas in two years.
I wonder who the Pike Limited partners are????
Well that 3 billion is still to be seen. I kinda doubt it.
Would've, could've and should've is a hell of a way to invest.
Doing fine work, Overboard. You too "1jk1".
Long live the SPNG.DD
Mr Overboard, your PM kinda disappeared. Sorry, but I didn't catch all of it.
I disagree on the effect of a bankruptcy reorg on the shareholders. It might take a year but it could be the best thing for them under present circumstances. But without numbers, who really knows for sure.
The $3.50 sponge price was a little distrubing. Some guy bought two in a Michigan (I think) store and flashed the receipt on a MB board. It was a Bill Young post. Not good news at all.
I thought you said January Mr gortarama. But I'll take April 29th. It doesn't really matter anymore. It appears to be over. The Knicks, Mets and CBS (and God knows who else) can force SPNG into a very serious legal situation. They can force SPNG into Bankruptcy.
You see sales, and I see legal and accounting fees for an unending list of lawsuits. Services were provided and bills were not paid; promises were made and promises were broken; just an endless stream of BS. End of story.
This "cash flow" problem is a result of not having an adequate financing package to support the production cycle, inventory and AR. The Mutt Boys cried this tune 3 times publicly. In addition, they issued a very serious warning to the shareholders that this "tight cash flow" was real and could bring down the company. It appears it has, and there's nothing the shareholders can do but watch (pray and hope also).
SPNG is a Private Company, thus normal shareholders have no rights. No way the M&M boys are walking away from annual $$$$$$$$ compensation packages. They have nothing to lose, and they'll go down with the ship. Its their only option. They are gambling with your COLD CASH.
JMHO of course. And lets not forget the SEC. Go Yankees.
That's an outragous statement Mr Overachiever. Totally and completely without merit. Our Shareholder letters have been concise, detailed and all-inclusive. What more could a shareholder ask for from these two pillars of justice.
So Metter once filed for Bankruptcy. So What, no big deal. And are the filings that big an issue. I think not, they're only 9 months late.
The sponge is filled with soap. So we have that going for us. And "Baseball Tonight", don't you feel all warm and fuzzy at 11PM every night. I do, it makes my day so complete.
I think I'm in love with Mosky. And now we have a COMPTROLLER, OOOO Boy.
WOW SPNG has a Comptroller. He must be working on the missing 10Ks and 10Qs. But NO, he's on VACATION, so it means the filings will be any day now. Thanks Mosky. Wonderful news, things must really be moving along. I knew THE EASTER BUNNY would bring me something special this year, an early Yank-Sox 4 game series and the SPNG filings.
Thanks Bunny.
SPNG is not bouncing checks now because they have a CPA acting as the CFO. Its very simple, if there's no money in the checking account, you don't write checks.
I'll even bet the CPA installed an accounting software package to keep track of the checkbook balance. No one keeps the corporate checkbook in their back pocket, except Mosky. Because of the CPA, SPNG will never issue a hand written check again.
Welcome to the Big Time Mosky. Computers to handle the accounting, Yippee.
Do you have evidence?????? I think NOT. We only have Metter's written word, that "cash flow" was very tight.
So we're only left with common sense. They have no financing package for AR, inventory and production line support.
Now if they issued the 10ks and 10Qs, then we would have something about actual "cash flow". In the meantime, the SPNG website is a joke. Why???? Because they can't pay their bills because of TIGHT CASH FLOW and shareholders have to wonder about all the rest of the bills. How about that 1120 amount?????? Major Bucks "rjs".
Now try to convince me they have a Banker.
PARL has financing issues as stated
in their 10Q, which I think could be solved by merging
If they both have financing issues, what's going to be solved????
SPNG can't pay their bills in a timely fashion now, so what's the point about solving "financing issues". Maybe eliminating the expense of having two websites, since SPNG appears to be so broke they can't even pay the maintenence fees for their website. The "Stocking Stuffer" matter is ridiculous.
A merger would just make the "financing issue" worse.
SPNG Website Maintenance Problems????????
Why is the "Stocking Stuffer" BS still flashing? Why not "March Madness"? Does the Website Designer need to be paid for services rendered?
Seems strange, but OMG how I love the SPNG website for news, company specials and current financial information. Coffee and the SPNG website is how I start every day.
(stock hasn't change much since the notice).
AWESOME
Sorry, just noticed I have a IHUB Mailbox. Some really good questions, especially the one about lawyers signing off on the 10k, before the CPA can issue their opinion. Will try to sent a response ASAP.