Thursday, September 20, 2018 2:32:57 PM
I keep seeing the reason why BioAmber went into the CCAA process was because their liabilities were greater the assets, this is not true.
The liabilities do not exceed assets. This is a Cash-Flow insolvency, not a balance sheet insolvency. There is a huge difference. And the primary reason many of us found BIOAQ.
This is going through CCAA liquidation process, however, the assets are not going through a distressed liquidation sale, they are being sold at a premium to a strategic buyer. The whole is greater than the sum of its Parts.
Yes, common shareholders are at the bottom of the chain, but your basing your opinion about a no payout on false information, either from your own ignorance, or with malice.
If the sale of the assets went to a liquidator, you would be right in assuming shareholders get nothing. That is not what happened, however. The assets were bought by a strategic buyer and will be bought at a premium because of the value this adds to LCY, Visolis, and KKR.
The liabilities do not exceed assets. This is a Cash-Flow insolvency, not a balance sheet insolvency. There is a huge difference. And the primary reason many of us found BIOAQ.
This is going through CCAA liquidation process, however, the assets are not going through a distressed liquidation sale, they are being sold at a premium to a strategic buyer. The whole is greater than the sum of its Parts.
Yes, common shareholders are at the bottom of the chain, but your basing your opinion about a no payout on false information, either from your own ignorance, or with malice.
If the sale of the assets went to a liquidator, you would be right in assuming shareholders get nothing. That is not what happened, however. The assets were bought by a strategic buyer and will be bought at a premium because of the value this adds to LCY, Visolis, and KKR.
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