Sector 10, Inc. (SECI)

[Throwingawaymoney]

If a asset strip would take place after judgment dividends would be distributed to the owners and shareholders after all the debts are paid correct? Not sure how this equates to the ticker being worthless or how management would even attempt to ride into the night without paying dividends.

https://www.investopedia.com/terms/a/assetstripping.asp

Breaking Down 'Asset Stripping'

Asset stripping is an action often engaged in by corporate raiders, whose method is to buy undervalued companies and extract value out of them. This practice was especially popular in the 1970s and 1980s, and can still be seen in some of the investment activity by private equity firms today.
Asset stripping today has been aided by the historically low interest rates of the past several years. Private equity firms will acquire a company, sell off its most liquid assets, and raid its cash coffers to pay dividends to itself and shareholders. Such activity may involve taking a company private. The private equity investor will when recapitalize the company with additional debt, which gives the practice its euphemistic name "recapitalization," which is a rebranding of the stigmatized asset stripping practice. Such a practice saw significant growth in 2017.


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