Well, things ain't looking so good in the bankruptcy.
It seems some folks thought that the overly generous terms that the DIP lender / bottom feeder had mandated were a little too sweet (and they were right). The DIP lender, being also a secured pre-petition lender, decided to bow out.
So, now there's no lender, no money to make the payroll that's due to be paid on Tuesday and almost no hope.
It looks as though there will either be an extremely quick sale (welcome back, bottom-feeding no-longer-DIP-lender David Chessler) or a conversion to a Chapter 7 liquidation (welcome back, bottom-feeding, no-longer-DIP-lender but still pre-petition ostensibly secured creditor David Chessler). Either way, it looks as though Mr. Chessler is positioned to pick this pile of whatever up for next to nothing, although he may find himself with a fight on his hands if/when a bankruptcy trustee is appointed.
In terms of who ends up with VEND's assets, I doubt any of this matters very much. It appears to be Chessler's if he wants it.
In terms of how much money gets distributed to creditors, none of this matters very much. No one is going to see much money, and whatever it is, it won't be coming very soon.
But, in terms of how things look for the franchisees, this seems to be very worrisome. Maybe RoBo needs to step up and buy the whole thing in order to keep his kiosks running.
AI
