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Well sure I could. OR you can go find it yourself. It's public information. Jax already put up an excerpt. Did you read that?
Well, well, well, look at this bs news. Craigy and co can now afford to take on new debt aka mergers and acquistions. Oddly enough, they are basically in the same shape they were at the time they exited BK.....and threw the legacy stockholders under the bus.....for their stated reason of "we can't handle any more debt than what we propose in our POR".
What I really want to say is....Alan, you arrogant SOB, you should have kept your hole shut since you were writing checks your arse couldn't cash. One day buddy, one day...........
Jax took up my slack. I thought everybody knew that.
They hold a lien and guaranteed a loan to get the deal done, but with those guarantees came some performance stipulations on Sherman's end. Obviously, somebody didn't hold up to their end of the bargain. Figure out which one.
Plaintiff's Attorney:
http://kolawyers.com/CM/Attorneys/Jan-Douglas-Atlas.htm
"He has practiced law for more than 40 years, concentrating on primarily securities and commercial litigation with an emphasis in complex and class action litigation."
"I told you so" just doesn't quite cover it, lol. Looks like the Gasket Guy founders think they got the wool pulled over their eyes. I think that makes it 3 out of 4, and when the IBM case gets kicked again.....
That's true, but they (husa) kinda brought it upon themselves, much to the detriment to the value of equity.
They probably want to look at everything, since it's a formal investigation.
Another law firm issuing PR today.
"On Thursday, April 19, 2012, Houston American announced that it was the target of a formal investigation by the SEC. According to Houston American, the aim of the formal investigation is to determine whether Houston American and/or its officers and directors have violated the securities laws."
Nothing good likely to come from that investigation.
It's not a margin call for HUSA, since he bought the bulk of his holdings sub-dollar, and a boatload for 20 cents.
Have you ever thought this may be his way of 'directed dumping' ? Surely he has something else to sell to cover that margin call, but yet I don't see him selling something else anywhere near this magnitude.
Nice excuse to sell off.
Well, Orrie Lee Tawes, an insider and director, has dumped 2 million dollars worth of this stock in the last month, selling as recently as last week, and maybe more recently, but not reported yet. He was dumping in the 3 dollar range too.
So he must think IT IS a big deal.
And is the SEC investigation bogus too?
Yeah, something doesn't add up.
Starting to look like a scam. SEC investigation disclosed (buried) in last PR. PR overall doesn't add up.
Chew on this, the most current, most accurate, non-fraudulent, financial information available:
http://www.gcginc.com/cases/sdt/pdflib/411_52649.pdf
ENJOY
Wrong? Not hardly. If you keep up with the misinformation, I'll be more than happy to post a link to the MOR so everyone can check your math.
That was from their latest Monthly Operating Report.
Total cash on hand = 7.5 million.
Total income = squat.
Total liabilities ahead of your shares = as far as the eye can see.
Evidence says they had 14 million in august, and now they have 7.5 million. Zero income. Bleeding to death at this point, unless something miraculous happens.
And I'm not even going to mention the 100's of millions in debt.
That should just about do it. Won't be long now.
You do realize that they are making their gaskets out of a large garage, don't you? They don't make the actual gasket material either, they cut and hot glue to fit the dimensions needed.
10.4 Default. In the event either party fails to perform any of the covenants of this Agreement (such party, the “Defaulting Party”), the non-defaulting party (the “Non-Defaulting Party”) shall have the right and option to terminate this Agreement, seek specific performance of the provisions of this Agreement and recover any damages any damages occasioned by the Defaulting Party’s breach, and/or pursue any and all other rights and remedies available at law or equity. Notwithstanding the foregoing, the Defaulting Party shall be entitled to ten (10) business days after receipt of written notice of default within which to cure such default and any deadline shall be extended for the period of cure.
Seems odd they'd quit for no reason. Wouldn't doubt if they feel like some fraudulent numbers were used to make this deal happen. Probably lawyering up as we speak. If I recall correctly, the deal had some kind of stipulation about audited financials. We haven't seen any. Stay tuned for more fun in QSGI land......
I paid a lawyer 175000 shares worth of QSGI for 4 years of work today.
Yep, that would be correct. It will be interesting to see how they effectuate the required 1 for 100 reverse split. They certainly can't add 99x more shares and meet any kind of listing requirement.
I guess that math would work if DYN was debt less after the plan, but you are basing the 40 million on 1 percent of the Enterprise Value, not the equity value. EV is EBITDA x 5 per the plan. Equity = EV - debt.
Trading well over plan valuation currently.
If this runs past 50 cents within the next year or two, I want to know who's pulling off the most successful, baseless pump job of a lifetime so maybe I can get in early on the next houdini job.
I think equity could have come out better if the holdco filed for bk. I don't think the fradulent transfer could have been proven, as it depends on subjective valuation. Icahn needs to find something else to do, as he is lost in the current distressed market.
Yeah, like YRCW for example. Took a bit to set in, then bottom fell out, then another big time reverse split.
Well, we know why Senaca sold. Once this sets in, it should drift on down. Going by the present numbers, it looks to be valued in nickel range or less, but of course it will trade on option value, not actual value. Massive dilution most likely followed up by another reverse split.
Speculating? yeah, you're right, I don't know anything about equity committees and unscrupulous lawyers.
That almost covers the current $74 million in liabilities. The only problem is that it is $55 million up front, which still leaves equity out of the money by about 4 bucks a share. The remainder to get flush comes after a note is paid out over 2 years. An unsecured note. Creditors will still not be paid in full (maybe) until 2014, then equity may get a little. Close call not knowing the professional's cash burn, plan of liquidation costs, etc.
Kinda looks like a trap.
If an equity committee is appointed in this case the lawyers will burn every bit of value up that may be available to the stockholders. The lack of management's holdings is troubling. No doubt they will concoct a way to line their pockets at someone else's expense.
"As a direct and proximate result of the six-month rule QSGI suffered actual damages
when its entire inventory of used IBM mainframes valued at $4,000,000 was rendered effectively worthless after the enactment of the six-month rule and QSGI was forced to dispose of the mainframes."
Hmm, maybe the lawyer should have looked at the coinciding 10k at that time:
"This, in part, was due to what the Company believes to be anti-competitive practices by a leading OEM. These practices have significantly impacted the entire industry for remarketing zSeries mainframe systems and, since implemented during the third quarter of 2007, have had a substantial, adverse financial impact on the Data Center Hardware segment. We also experienced a decrease in revenues in our Data Security and Compliance segment as a result of a decrease in the flow of wholesale OEM remarketing product as the Company stopped speculating on inventory and instead, only purchased product where we had a buyer in place".
So, what's the truth? Lying in the amended complaint, or lying in the 10k/a? 10K said they didn't keep inventory of mainframes to re-sell. Complaint said they did....4 million dollars worth.
Ah, more discovery, lol.
Zero volume after the complaint was amended? Oh, I guess those lawyering folks didn't catch that with their infinite wisdom. Couple of whoppers in the amended complaint....kinda funny actually.
"QSGI now has effectively 0% market share because it no longer is
in business."
Bet you folks didn't know QSGI is out of business, lol.
"As a direct and proximate result of the six-month rule QSGI suffered actual damages
when its entire inventory of used IBM mainframes valued at $4,000,000 was rendered effectively worthless after the enactment of the six-month rule and QSGI was forced to dispose of the mainframes."
Hmm, would that be 4 million retail, or 4 million cost? Who twisted their arm to throw them in the dumpster? What was it, one mainframe, or two? They need to do a better job of making stuff up.
Early in the complaint, it is alleged the used mainframe market in a 'multi-billion' dollar market and QSGI held approximately 10% of the market. 10% of more than a billion is certainly not one or two mainframes with a fluffed up retail price tag of $4 million that were 'disposed of'. More like 1% of the market that went to 0% of the market. Big deal.
Expect the hits to keep on coming...
Trustee joinders.....insight to the future:
"These chapter 11 cases are extremely complex and contentious,
and they have the potential to become even more so if the issues highlighted in the Examiner’s
Report devolve into full-blown litigation."
"It is impossible to see how Dynegy Holdings can now - after it has been caught
red handed - purport to act as a fiduciary for the very creditors it intentionally sought to “hinder
and delay” prior to the Petition Date."
He comes more vultures aka faruqi and faruqi. Teetering.....