Reason the buyout offer will not work, not enough money.
The former CEO probably will not be able to raise enough money to do the buyout. The problem is that it does not make any sense for the debt holders to agree to anything else except full payment, which is not realistic since the company is losing money still.
From the 8K report, stockholders equity is negative $225 million.
From the 10Q report, here is the long term debt, in millions: Senior Secured Notes due 2020 $210,564 Standard General Loan Agreement $9,095 Standard General Credit Agreement $15,000 Other $248
Total $234,907
The $210 in debt million is a secured debt. Unless someone is willing to pay them off in full, there is no reason for them to agree to anything else besides completely taking over the company.
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