TAKE a stab at why the 14 who said yes said yes and why the three who said no said no??
We can all take a stab at it, but there is no way of really knowing short of a statement by each of the entire 17 separately. The vote was yes or no.
The bankruptcy proceedings got input from some, but not all of the note holders. Most did not provide input as to why they agreed.
Evidence is that the BK was pre-planned...a 50K contribution from an officer of the company and a member of the BOD made it possible to engage the Lawyers to file for Chap 11. CDEX lacked funds. All 17 knew that. Certain representations were made re RESTRUCTURE of CDEX that money would be available from an ANGEL
group that would allow the company to stay in business.. with the provision that the said group be recognized as the sole secured investors. THUS if and when CHAP 7 became the last resort, said angel group would be entitled as the only secured lenders to all of whatever assets were then available.
The 14 that agreed it can be said, absent direct statements from them collectively or individually, that knowing that CDEX had no money and therefore were unable to pay up, had nothing to lose by agreeing. It cost them nothing that was not already lost. No doubt that they would have rather the money owed to them, but having some hope that CDEX could eventually be profitable was the most likely reason that they said yes.
THE CEO made certain representations that there was a product in development that could become the vehicle for making CDEX profitable. In fact, he told the court, falsely, that CDEX had three copies of that Valimed G4 nearly ready to sell. As it turned out, they were NOT ready.
But nevertheless the court agreed to allow the CHAP 11 to proceed and discharged the BK proceedings. The court did approve the REORGANIZATION plan. But the G4 is not sold any as of yet.
