Cdex bankruptcy play book review
Cdex bankruptcy attorney is hired in January of 2012..... Then the details are explained, almost to the period of what happened.....The note holders were offered a deal they "couldn't refuse" to quote an old movie line. What the BK court called a loan to own scheme, where funders conditioned the offer on wiping out a note by having holders "take a bath" accepting stock shares and writing off their debt for much less than they were owed. As explained bumfield "talked to all the note holders" on behalf of the funders.
That part of the scheme fell apart when F-you letters were mailed by three ex employees of the company. It is still interesting to think about what those three knew, an ex-CEO, a ex-Vice president and an ex-engineer, that the other note holders didn't.
Just imagine if the note holders all agree and then cdex filed chapter 11, not following through with the loan offer at all. The note is gone, leaving only business debts that were however significant and the ex-note holders just regular shareholders now! Then cdex files the planned chapter 11. A bankruptcy that would have been far easier and less expensive and one that would have left cdex telling the judge in that case that they have a plan and a promise of funding all set to go, what a coincidence! Explains the whining and crying about the evil three who could not do the right thing like all the others did.
The 10K said over 2 million in debt. Imo, this could be lowered significately, if not COMPLETELY zeroed out. By zeroed out, imo, I would say that shares in the company or cents on the dollar, may be what the court approves.02/11/12
Imo, Cdex will not touch one share of the common shareholders. The Senior noteholders and the other ones owed money are going to take a shower, bath, or dunking.
Mr. Brumfield, imo, will put the best re-structuring plan he can together and present it to the court. Imo, he will do all he can within the limits and rules to save the 15,000 plus shareholders.02/15/12
So, does any one know how the Senior note was written? Is it a note with teeth or is it toothless?02/20/12
It is going to come down to how much debt Cdex is going to wipe out, how much, money they can raise, and how successful the G4 & ID2 are over the next 2-3 years. 02/21/12
Mr. Brumfield was the pick by shareholders who wanted Cdex to have a new leader. Imo, this pick will prove out to be the right one. These next 2 to 3 months will say quite a bit as to how good the pick was.02/22/12
It is my hope that at some time in the near future Cdex will make all facts available as to how this Chapter 11 came to be. 02/22/12
Imo, this is one of those times you want a great BK attorney, who can protect the company and shareholders, hopefully Cdex has one.
02/23/12
Imo, there is no way that Dr. Terrell, Mr. Brumfield, or anyone else at Cdex saw the Senior note issue coming. Maybe those that caused the trigger to be pulled did, but no one at Cdex.02/29/12
Who will benefit and who will not:
1) Well, if all debt is wiped out, and the common shareholders remain in tack, the "SHAREHOLDERS" benefit.
2) All Senior Noteholders and others who are owed money will NOT benefit at all.
3) Plus, imo, Any new money that may come into the company will be first lien money.03/01/12
A fact you will not find talked about much on this board, because the truth is not really appreciated, but Cdex had lowered its debt quite a bit under Mr. Brumfield. The Tech has reached a much higher value in the field. He did this in 16 months, with less than 1 million from investors. What can he do with one more million? Imo, if Mr. Brumfield is able to secure funding of $500K to $1,000,000, this company will have a good 3rd and 4th quarter in 2012. 03/01/12
Time will tell, and I say, imo, that in 5-10 weeks the Judge will have the Cdex business plan to come out of Chapter 11.03/01/12
the street talk is Firmbach and Ryles and possibly Mp. If that is the three who sent default letters to Cdex, then how dirty does it look? 03/01/12
Thus, imo, Cdex may offer 1 share for every $10 owed note holders and creditors, or whatever ratio the law firm deems appropiate and the Judge agrees to. At this point, it is anyone's guess as to what will happen in order for Cdex to come out of Chapter 11.03/03/12
