Isprt - I have to think that the loans were called and in lieu of foreclosure, Olsen agreed to a settlement,ergo, Fan and his investor group/lenders assuming control.
I also would rather think that the increase in O/S is due to conversion of a CD ( reduction in debt. Yes equity is more costly than debt, but I'd rather have more equity and less debt for a start-up trying to achieve positive cash flow.
I like the statement that there's been no more dilution. That's telling me a possible CD may have been restructured and no need for dilutive restructuring. A debt/equity exchange. The lenders/Fan could agree to roll over the remaining debt to equity/the 53%. The worst is over.
Some questions, How did Olsen maintain his majority control , if they were selling/ converting shares. Did he issue shares to himself. The irregularities previously mentioned.
It's ashame we can't see the parents statements. On the sub statement I thought it was odd that loans to affiliate ( I think I recall) didn't increase during the periods. That also tells me that Olsen may not have been finding through shares ( parent noe advancing proceeds to operating sub, but rather the dilution at the parent level was more due to CD conversion/reduction in debt.
This is all wishful thinking on my part. The important part is that bankruptcy doesn't seem in anybody's interest and no more dilution is taking place.
Fan has a lot of ground to cover regarding a financial and operating plan, but at least the potential is that he is a savvy businessman, who will spend wisely and have a lot of good ideas which are realistic and acheivable.
Olsen did have entreprenuerial vision. Now it may be time for professionals to take over. It's ashame Plsen was so dishonest.
Hi Frank. you deserve everyting you have coming.
