Box Ships Inc (TEUFF)

[temp luvs amy]

The legalities are a can of worms. Do you know the BK proceedings for Marshall Islands? I sure don't. I did participate in a company that was "winding up" in Bermuda. Winding up is what they call BK in Bermuda. We (the shareholders) got nothing from it. Some Swiss bankers took everything and left us with nothing. I think a group of preferred shareholders who bought the fire sale prices got something. They often have a preference on payouts, you know?

The Box preferred has a preference on takeovers but not on liquidation. That's probably why they haven't forced a winding up. If they had, there would often be legal recovery on assets sold to affiliates, etc. That's for the preferred, though. Not much help to the common. I'm guessing that any recoveries or legal remedies for the common would initiate a "change in control" to the preferred, and trigger full payment of arrears, which is all they are entitled to. Again, leaving common with only the prospect of creating a going concern from the shell.