MedSmart Group Inc (MSGP)

[solong]

$KNSC - I believe (some might have better info on this) that since Parliament Holdings is acquiring Gardens Resorts, that it could not perform a reverse merger into a Publicly traded stock while part of it was in bankruptcy for the following reasons.

Liability for the Gardens accumulated debt would have transferred to Parliament Holdings and would have complicated the effort to reduce the debt and make Parliament Holdings liable for that debt.

Parliament would not want that debt as their responsibility. Remember that they have positive cash flow and so you wait for the entity being purchased, Gardens Resorts, to settle their outstanding debt load and then you can move forward.

Remember that Parliament did NOT incur this debt so no reason for them to assume responsibility.

NOTE: I assume that Parliament is already in charge of Gardens as Parliament Management has been signing the documents for the court filings. So it maybe a little more complicated than I've described but the jest of this is that you need to get the bankruptcy finalized (already accomplished) prior to the Reverse Merger. I think I am at least close to being accurate but others who've been here longer may have a clearer picture.