BioRestorative Therapies Inc (BRTX)

[trader59]

Bankruptcy 101:

The "stalking horse" bid for the assets is $500k. Just a cursory review of the company's financial condition shows over $10M of debt to be repaid from the proceeds of the asset sale. The last quarterly showed total cash and receivables of $200k.

That means less than 10% of the debt will be paid if the "stalking horse" is the winning bid. There is a chance of a higher bid, but other bidders will be eyeing that $500k bid and won't offer substantially more, plus bankruptcies typically don't get "full value" of assets when sold. That same quarterly report listed the asset value (property and equipment and intagibles) at $900k, so other bids will be capped by what the company itself says the assets are worth.

So, once the assets are sold, you'll have an empty shell company with $9M of debt on the books. That isn't "taking shances," that is tossing money out the window. There's no play here, either, all it will take is 1 reading of the 8K to see through any narrative that could be forwarded.