Secure Point Technologies Inc (fka IMSCQ)

[int10a]

Agreed on why they filed Chapter 11. At this point they needed to guarantee they had enough operating capital to complete the transaction (which the $5.7M loan takes care of), and with the Oct 31 deadline on the debt they had to protect their assets too. For sure the PP investigation put a wrench in the sale being completed in a timely manner. Back in July they obviously anticipated it could be completed by now but things with PP got worse after that.

It also is a way to see if a higher bidder will emerge now that L3's bid is known. Anyway the Chapter 11 filing is not to screw investors.

They did accomplish what they said they would as you outlined. The Morpho protest really hurt them as well as the competition really bidding low prices on the TSA contracts. Whether or not that is something anyone could have antcipated would happen is up for debate.