Difference between unsecured creditors and common shareholders
In an article written just a couple of months ago, I was curious about this particular paragraph:
During January, 2015, Baxano generated sufficient cash from operations to pay back all of its post petition DIP borrowing. As a result, the net DIP balance at the end of the
month was zero.
"The financial stability introduced by the CRO’s leadership allowed Baxano to sell all of their assets, producing a total return that could potentially produce a return for unsecured creditors."
Two questions:
Quesiton 1: What is the difference between unsecured creditors and common shareholders?
Question 2: Do you foresee any type of restructuring or reorganization with Baxano where the common shareholders are a part of it? Or are they just wiped away?
John Palmer, the current CRO, has apparently done a terrific job turning things around for Baxano unlike the former CEO Ken Reali.
Has the shipped sailed for Baxano? Or is there still life? Of course no one from Baxano is conveying anything.
