American Scientific Resources (ASFX)

[Mariner*]

Streett I think the reason that they didn't switch to a Chapter 11 - Bankruptcy and just stay with the Chapter 7 - Bankruptcy are immense.
1st off a Chapter 11 gives the creditors a chance to recoup some of their losses going forward, a chapter 7 does not.
With a chapter 7 you take what you can get and that's it.
After the BK case is closed, creditors have no rights to any further claims going forward whatsoever, none, nadda, zip.
The company albeit a shell, is absolutely sanitized from all debtors, and has a clean slate once emerged from Chapter 7 bankruptcy.

This chapter of the Bankruptcy Code provides for "liquidation" - the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.

Shareholders are exempt property, because we are not owned by the company. We cannot be bought and sold like physical property.
[Although, we can be considered an asset for other considerations like selling the shell in a reverse merger], legally the company cannot relinquish property that is doesn't own.

This is why the "Company" after the judge closes the case file, which they are about to do, will be valuable to a reverse merger candidate because they will be purchasing a shell that has absolutely no liabilities or carry overs to the private company wishing to go public.
At an extreme discount to an IPO I might add, that runs up over a million dollars.

Which is why shareholders that have been sitting here for years, are about to be rewarded for their patience. Imo.
Mariner*