imis...(put something here)
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
In the press release attached to the 8-K:
"The Board of Directors is committed to providing optionality to the shareholders to maximize the value of the Company and is working on a Chapter 11 plan to emerge from Chapter 11 bankruptcy. It is contemplated that the Chapter 11 plan will include a proposed disposition or use of the sale proceeds (after satisfaction of secured and unsecured debt) to either make another acquisition or to distribute the proceeds to the shareholders. Ultimately, a Chapter 11 plan will be presented to for approval to both the Company’s shareholders and the bankruptcy court. More information on the Board’s plans to provide greater value to shareholders will be released in the coming weeks."
Yeah right, they are going to "provide greater value to shareholders" - it is a little late for that. Same with "maximize the value of the Company". There's little value left unless the debt to Platinum is reduced.
There was a hearing on the 10th just about the company that is the auditor, but there were no objections so they were approved without a hearing. The hearing on January 20 is for the Equity Committee motions. They originally wanted it expedited to the 10th but then withdrew their motion to expedite.
It was at $1 roughly when Glenn left. I think everyone would gladly take that now, I know I would.
Exactly. He doesn't know any "inside information", the equity committee knows lots more than he or anyone else here knows. The idea that he is going to testify is laughable.
Anyone notice in the filing yesterday at http://www.kccllc.net/imxacquisition/document/1612238170104000000000004 IMSC claims they have remained current on their lease? Somewhere else recently they said they had not paid rent for several months. I think it might have been in the sale document. Their filings are contradictory. If they have gotten caught up on the lease (which is different than "remaining current") they must have used part of the DIP loan to do it.
DMRJ and Montsat are 100% controlled by Platinum, they are subsidiaries however in the equity committee's motion it says they have no employees of their own, but are managed by Platinum.
BAM was allegedly separate from Platinum but the SEC filing of their civil charges says BAM is some percentage controlled by Platinum, by some amount close to 60% and that Platinum used BAM to steal money from investors in their Platinum Arbitrage Fund.
When BAM got the loan from IMSC that was originally DMRJ's debt, for $20 million at the time no one knew BAM had any connection at all to Platinum or DMRJ.
https://www.lawinsider.com/contracts/5Y7zNWZw5CknJ9VppmGo24/implant-sciences-corporation/separation-agreement-and-release/2015-01-23 - says NYC Apartment, not Condo. Not that it really is all that important whether it was an apartment or condo.
Also https://www.sec.gov/Archives/edgar/data/1068874/000106887415000002/imsc150123_8k.htm refers to an apartment.
What about the allegations that after getting the loans, PP exerted a lot of control over the company and therefore were insiders, yet converted debt to shares and then sold them, using non-public information?
BasherCrasher: Those two claims appear to be duplicated across all 4 companies, so I think it really is $800K in claims. That does not answer the question what they are for. One might be the bonus, who knows what the other one is.
It isn't fair, but I think the L3 deal required some amount of inventory and it looks like they were building up their inventory to meet that. Of course that means we are paying for the cost of production but L3 gets the revenues when they ship the units!
The bonuses look like they are part of the unsecured creditor claims. Check out http://www.kccllc.net/imxacquisition/register and take a look at the last page (page 10) as it is sorted alphabetically by first name. You will find:
Claim Number: 105
Claim Amount: $150,000.00
Name: William McGann
Date Filed: 12/19/2016
Nature: Priority
Debtor Name: Implant Sciences Corporation
A/R:
A/R Date:
Debtor Number: 16-12239
Basis for Objection:
Objection Resolved?:
Claim Number: 106
Claim Amount: $300,000.00
Name: William McGann
Date Filed: 12/19/2016
Nature: Priority
Debtor Name: Implant Sciences Corporation
A/R:
A/R Date:
Debtor Number: 16-12239
Basis for Objection:
Objection Resolved?:
The bonuses for the others are in there but McGann's is easiest since it is at the end.
How soon the unsecured creditors get paid is not clear. Would seem like secured creditors have to get paid first, so their payments may get held up since the Platinum debt is in dispute.
Mostly gag orders are to prevent tainting a jury pool. In this case there is no jury pool, because there is no jury on a bankruptcy case. As you say, the EC has not even obtained standing to press these charges, that is what the January 20 hearing is about. The whole story about someone who is a shareholder testifying and being under a gag order is obviously made up, the reason it was posted here is unknown.
PP was not going to be saved from bankruptcy by $80M. They owe many times that among to their investors. Even if they got that money from IMSC they still would have had to file.
Your scenario implies payment back PP in full. I don't agree with that, and don't think they deserve anything but will let the court decide once all the evidence is in.
Nothing he posts can be believed. Also the committee does not need any help from someone who no longer is able to post here anymore, and has no more knowledge than the rest of us of what happened between PP and the company. The idea he has some special knowledge that no one else outside the company and PP had is preposterous.
In reading further, looks like normally the lenders get paid right away to stop any further interest from accumulating. So the equity committee is protesting Platinum getting paid right away as there is great concern that any money paid Platinum will disappear and also asking the interest rate be reduced from the date of the bankruptcy filing. It is unclear how soon any other money normally gets paid such as unsecured creditors, CIC, etc.
Assuming the sale proceeds get paid to the company and then the company pays its creditors and other obligations, it looks like some protest would have to be made to get the court to order an injunction from paying the CIC payment.
Looks like the committee wants payment to Platinum to not be paid until the dispute is settled. Everything else looks like it will get paid shortly after January 5 including CIC payments, bonuses, DIP loan, BAM debt, etc. The only thing the committee is protesting is the Platinum debt.
As far as Liscouski and Zapata, did you notice this agreement they snuck in that was signed in October 7 by Liscouski and Turmelle? It makes sure Liscouski gets an extra $300K no matter what happens in bankruptcy court or with Zapata. It implies he is losing out in not going to L3, which means McGann must be getting a great deal of money to go there. This is in the 10Q that got filed recently:
AGREEMENT
This Agreement (“Agreement”), dated of September , 2016, is made by and between Implant Sciences Corporation, with a principal place of business at 500 Research Drive, Unit 3, Wilmington, MA 01887; and ROBERT LISCOUSKI, an individual, with an address at (“Liscouski”).
WHEREAS, Implant Sciences Corporation (hereinafter “IMSC”) is in the process of selling its ETD business to a third party.
WHEREAS, IMSC is in the process of acquiring the equity and/or assets of Zapata Industries, SAS (“Zapata”).
WHEREAS, it is the desire to have Zapata as IMSC’s operating business.
WHEREAS, Liscouski is the President and a director of IMSC, and is assisting with the sale of the ETD business, and is assisting in the acquisition of Zapata, and he will remain the Chairman of IMSC.
WHEREAS, all the employees of IMSC, aside from Liscouski, will have been retained by the buyer of the ETD business and Liscouski is forgoing significant financial gain by remaining with IMSC
WHEREAS, in consideration for Liscouski’s continued employment at IMSC and/or Zapata, IMSC agrees to compensate Liscouski according to the terms set our herein.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IMSC and Liscouski agree as follows:
1.
Transaction Fee. Liscouski has been to date, and continues to be, an integral part of the IMSC team and in consideration of this continued work for IMSC and the Zapata transaction, IMSC hereby agrees: (i) pay Liscouski the sum of, Three Hundred Thousand Dollars ($300,000). This shall occur upon completion of the sale of the ETD business and purchase by IMSC of Zapata substantially in accordance with the terms of that certain Letter of Intent between IMSC and Zapata dated July 22 nd , 2016 (the “Transaction”) which shall be formalized into a formal agreement.
2.
Liquidation Payment. In the event that the sale of the ETD business is not completed for any reason whatsoever or the bankruptcy court in IMSC’s contemplated bankruptcy proceeding negates the payment set forth in paragraph 1 above, IMSC agrees to pay Liscouski the sum of Three Hundred Thousand ($300,000) upon the liquidation of IMSC assets and the final winding up of IMSC’s affairs (the “Liquidation Payment”).
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.
Implant Science Corporation
a Massachusetts Corporation
By: /s/ Michael C. Turmelle
Name: Michael C. Turmelle
Title: Chairman
Date: 10/7/16
ROBERT LISCOUSKI
By: /s/ Robert P. Liscouski
Name: Robert P. Liscouski
Title: President
Date: 8 October 2016
In that case I agree with you, I misunderstood your previous post. Turmelle did not want anyone to dig too deeply into things and tried to use the attorney fees and interest as a scare tactic.
I interpreted Turmelle's letter that he wanted to end the investigation, rather than it being a cry for help. I would like to be wrong about that, but that is how I read it. It just did not seem to me he was encouraging any further investigation but rather the opposite.
For certain the lawyers have told everyone to not speak about any of this. Bolduc spoke at least twice with the equity committee lawyers according to their billing. To me that says he had nothing to hide, they did not have to subpoena him unlike everyone else.
McGann and Liscouski have a lot to answer for, including the misdirection with Zapata, the statement in an earning telecon late last year that many EDS companies were interested in partnering with them and they wanted to be careful and pick the best one, and lots more.
Platinum and DMRJ were involved as far back as 2008. In fact the CEO prior to Bolduc signed the original loan agreememt and that is the one they at times were allowed to charge 2.5% a month. See https://www.sec.gov/Archives/edgar/data/1068874/000106887408000067/imxform8k081216_ex99-1.htm
They were converting shares and charging high interest rates (as much as 2.5% a month) during that time when the company was really struggling with low sales. At that time they were the only choice but they took advantage even then.
Once the TSA contract was obtained, it now is clear Bolduc was spending time in NYC to get better financing. Platinum had him removed as they were making lots of money off share conversions, the stock was above $1 at that time. They knew all that would come to an end.
That had to be the reason for the apartment, to seek better financing in New York where all the financial companies are. No use for it after Bolduc left so they just let him continue to use it until the lease expired.
The committee must have found ample documentation in correspondence within the company showing Platinum's involvement in the company. That along with the timing of their trades when they knew about non-public material information should make a strong case of illegal insider trading.
It is obvious the outside directors other than Turnelle left when they realized Platinum, McGann and Liscouski now were in control and the cards were stacked against anyone else. What would be the point of staying on in that case.
I remember the sentiment at the time was still believing McGann was a great person. You are right, no one would have believed Bolduc if he said anything bad back then, they would have written it off as sour grapes for being forced out of the company.
I wonder what kind of great deal McGann is getting for going to L3. Could be stock and other incentives.
That would be the infamous buffalop51 who posted his address and made many fantastic claims in the past, invludomg that he got Bolduc fired! It was Todd Silvestri that was sweating at the product demo.
If as the equity committee alleges (which sounds correct) that Platinum exerted so much control over the company they had to be considered insiders, then all those stock trades were illegal and the money made on them is considerable and should be returned to us. At times they converted 8 cent shares and sold them above $1.
And Glenn Bolduc was let go in January 2015. By that time PP's liquidity problems were clearly increasing since their troubles were happening even earlier in 2014. It adds some credence to the theory PP had a role in his dismissal, if they felt he was pursuing other financing. At that time they were converting equity to debt while the stock was above $1, making huge amounts of money on 8 cent shares, according to the equity committee's motion. They may have used proceeds from stock conversions to try and ease the developing liquidity problems they were having.
Uri Landesman was one of those arrested: http://fortune.com/2016/12/19/platinum-partners-arrested-fraud/
Others arrested included David Levy, 31, Platinum's co-chief investment officer, and Uri Landesman, 55, the former president of the firm's signature fund, said Federal Bureau of Investigation spokeswoman Adrienne Senatore.
It is not how they came to use Platinum but why they stayed with them after they got orders from the TSA. The equity committee looks like it has found evidence that Platinum prevented the company from getting other financing. Their filing with the court mentions coercion and interfering with the company's attempts to seek alternate financing.
Platinum, DMRJ, and BAM are all the same, just different parts of the same outfit. Platinum set up these other companies to move money to and hide money from Platinum's investors, they are all controlled by Platinum employees.
BAM was used by PP to hide money according to the SEC complaint included in the motion. David Levy worked for Platinum and then went to BAM. He is one of those arrested. This whole mess is one of those "the truth is stranger then fiction" events.
The number of bankruptcies where the lender had criminal indictments and SEC charges filed against them must be very small.
By something similar I hope you mean where the lender is under criminal indictment and SEC violations, and there is evidence of their criminal actions against the company. I doubt there are too many other bankruptcy cases like that.
You must be the only one on here who believes anything artang says. Some people believe anything!
Now you are insinuating my opinion of lawyers and judges and you have no clue how I feel about them. I should have not posted real outcomes of cases. I should have just made up some gossip, I see now that would have been the better approach here.
You should have asked for "personal experience testimonials" then. The chances of someone here having experience with either the judge or the lawyers would be exceedingly slim.
I posted some info easily obtained to counter any negative inferences being made about the lawyers for the Equity Committee.
You should have done this yourself as it is not hard:
http://www.brownrudnick.com/people-detail/baldiga-william-r :
Riverstone Networks - Representation of Official Equity Committee and plan sponsor for this publicly traded technology company, achieving distributions to stockholders exceeding stock trading value within nine months of filing.
http://www.brownrudnick.com/people-detail/beville-sunni-p:
Representation of Official Committee of Equity Holders in Riverstone chapter 11 cases, successfully minimizing estate liability on account of indemnification claims of former officers and directors and realizing recoveries for equity holders.
That was not hard was it?
PP even suggests they would offer further extensions. The judge has not agreed to the Feb 23 extension, PP makes it sound like a done deal. That is pretty deceptive on their part.
It looks like it was in the agreement on July 20 that was made a day before the Zapata LOI announcement:
"the conversion price for the September 2012 Note was reduced from $1.09 to $0.19 per share for up to $7,000,000 of the obligations thereunder, DMRJ agreed to convert $7,000,000 of the principal under the September 2012 Note prior to the consummation of the Zapata Acquisition, and the remaining conversion rights under the September 2012 Note and the February 2013 Note were waived;"
So it looks legit after all. That is also why they had to take that $9M charge since the stock was trading at $0.44 and they set the conversion price at $0.19.
They broke the Massachusetts' usury law, that much is clear. No doubt the Equity Committee has a lot of evidence for the other allegations, which may be in the redacted text. No one can say for certain what the outcome will be at this point.
Probably no one has mentioned that since it lists the book value of those shares, but do not think they are worth anything. Those 2 companies do not list any assets. Those shares and there value are not listed in any balance sheet so another indication they are worthless.
I do not see where in the sales agreement it mentions how much the "assumed liabilities" are.
He is Investot Relations for Implant Sciences:Implant Sciences Corporation Investor Relations
Company Contact:
Glenn King
732-747-0702