NTEK's Enforcement Debtor Status Leaves Few Options
As NTEK has now been named a enforcement debtor by the courts in two separate cases where final judgements/orders were handed down and millions of dollars are now owed, NTEK's options are few:
Assuming they want to remain solvent, the need to essentially double the current AS and dilute upwards of 150,000,000 new shares at minimum - and that assumes they can somehow keep the current PPS stable while doing so.
As NTEK's few assets are currently illiquid (aka NTGL), there isn't much they can do outside of dumping shares to raise cash. I'd say Foley could simply pay off the judgements with his ill-gotten Royal Capital Group millions, but I seriously doubt that would ever happen.
As clearly outlined in the recent court filings, Long Side has every intention accessing NTEK/NTGL's bank accounts, property, etc. - essentially anything of value and selling it off at auction to garner payment, so my guess is NTEK pulls the plug and goes BK on the NTEK venture. Spinning whatever remains into another shell and starting over will just bring a whole new wave of lawsuits, although I would not put it past them. Foley clearly doesn't give a rats a$# about completely ditching current shareholders.
Any new deals NTEK attempts to do result in immediate subpoenas, any stock they give away to insiders results in immediately court filings for discovery, etc. So I guess they slow play the enforcement debtor obligations as best they can and continue to dump shares as they've clearly been doing lately. Although it will be harder to keep the PPS stable with no ability to hire promotional firms.
I dunno - it's a bit of a pickle they've gotten themselves in and unfortunately, current shareholders stand to lose no matter what.
