PPJ Healthcare Enterprises Inc (PPJE)

[Ed the Trader]

"Grewal's contract was with Healthcare, not PPJ Enterprise, which didn't exist at the time he was a client. Basu took back control of Healthcare, which still exists as a Delaware company, when she was hit with that big judgment in the Soloniuk case. She took Healthcare into bankruptcy to avoid paying it. Tried to declare bankruptcy herself, as well."

As we discussed months ago, Healthcare, the Nevada corporation, absorbed Heathcare, the Delaware corporation. Then, Healthcare, the Nevada corporation, was renamed to PPJ Enterprise.

Basu then opted to spin Heathcare, the Delaware corporation, off as a separate corporation again. When a corporation spins off a part of their business as a separate corporation, the management gets to decide which assets are sent to the corporation which is spun off and which assets stay with the parent corporation.

Basu elected to spin off negative assets to Healthcare, and keep positive assets with PPJ. Basu decided that the relationship with Grewal had enough probability of becoming a positive asset that she kept it with PPJ. Of course, Grewal had not counter-sued yet at that point, so at the time, the worst outcome could be that PPJ would have to pay for its legal fees if it completely lost the lawsuit against Grewal.

Basu spun all of the negative assets (aka: liabilities) acquired from the acquisition of Healthcare/Delaware back into Heathcare/Delaware specifically so Healthcare/Delaware could be taken into bankruptcy. That would protect PPJ from all of those liabilities (by zeroing them out in the bankruptcy of a corporation with no positive assets) but transfer all of positive assets to PPJ.

It is now well settled that Grewal's relationship with Healthcare/Delaware was acquired by PPJ, where it remains today, because Judge White allowed the lawsuit to proceed in spite of the attempted arguments by Grewal's attorneys to the contrary. The judge heard those arguments and rejected them.

"Don't forget that Basu is a party in both suits. If she gets a win, she'll want much or all of the money for herself."

Go read the court documents again. Basu is NOT a plaintiff against Grewal. PPJ is the only plaintiff in the original complaint. Basu was only pulled into the trial as an individual because Grewal named her as a cross-defendant in his countersuit. That means that if Grewal wins, he can get judgements against both PPJ and Basu. However, if PPJ wins, Basu as an individual is not entitled to a judgement against Grewal.

Obviously, as CEO and sole board director, Basu can opt to compensate herself from her position with PPJ as she desires. However, she will receive nothing directly from the lawsuit as an individual. Stockholders will be able to use upcoming news releases, including tomorrow's radio interview, to determine if they believe that Basu believes that any award from the lawsuit will be better for Basu when invested back into PPJ, or better transferred into Basu personal bank account. It will be a simple question to answer: "Do you believe that Basu wishes to continue to operate her own business, or not?"