"the $1,000,000 did not even exist. the deal was to create more debt for BLTA so they can issues shares to the MMs under the debt rule allowing the MMs to un-restrict them. The sec rule allows lenders who pay debt to take shares as compensation and also have them free trading, that is why the company has debt and issued lots of shares to the MMs and the MMs pay BLTA their cut. ANYONE who says when shares are sold the company or CEO does not make money is a fool."
"they can use treasury shares that are issued for debt then converted to cash with out any restrictions. The board and CEO probably do not own any shares. They company creates debt, then exchange that debt to investors brokers that pay the debt for shares. it goes like this: BLTA has billions authorized. they create debt (phantom debt) they then issue that debt to investors who agree to pay the debt BUT with sold shares that they are able to unrestrict. The investors pay off the debt by paying the debtor that BLTA has the debt with (probably a company they own that is private) and not part of BLTA. they agree to pay off $1,000,000 debt for 1,000,000,000 shares. then they give those shares to MMs who sell them for the investors who took on the debt. The MMs sell 1,000,000,000 for $.005 and raise $5,000,000, they then pay the company BLTA owes the $1,000,000 to which then comes back to the CEO or board OF BLTA. that is how this works."
-> WHICH EXPLAINS <-
Baltia's proposed purchase of Songbird Airways collapses
[Illustration of USGlobal Airways Boeing 767-300]
30.11.2017 - 19:23 UTC
Baltia Air Lines, Inc. has announced that its proposed acquisition of Songbird Airways from its owner, AerLine Holdings LLC, has been called off.
In an SEC filing, the start-up carrier, also known as USGlobal Airways, said AerLine had sent a letter on November 22 informing Baltia that it had terminated the agreement as a result of Baltia’s failure to proceed with the closing as scheduled.
Under the original plan, Baltia was to have acquired Songbird Airways, along with its entire share capital, operating licences and certificates, from AerLine for USD6.5 million. The deal was to have closed by October 31.
As such, with the purchase's collapse, Baltia has also lost a USD1 million good-faith deposit paid to AerLine on September 1, 2017. A B737-400, N417XA (msn 25417), that was to have been leased to Baltia post-transaction, is now being offered for sale or lease by AerSale.
In a follow-up statement to shareholders, Baltia Chairman Anthony Koulouris said the board had decided to withdraw from the AerLine deal given their own reservations about its longterm benefit to the company. He also alluded to there being other options, similar to those with Songbird, that were available to Baltia.
"With your interests at heart, and so much at stake, we will not take any action if we are not 100% confident it is best for the company and for you. It is this frame of mind that motivated our decision to pursue an alternative to Songbird," he said. "Our Board of Directors met yesterday and unanimously decided to move forward with our revised approach. Due to the confidentiality of the relevant parties, we cannot go into more detail at this time."
BUT LOOKS LIKE SONGBIRD GOT COLD FEET ON A PITCH TO RE-SELL BALTIA PAPER
"Looking forward to the next few weeks. I can only think the new direction the company is pursuing was a result of a much better offer, plus maybe Songbird's 121 certificate / plane had issues and those couldn't be resolved in our favor.
Plus hearing that LT is going to be playing a part in whatever is in the works, is very good with me. To hear that the largest shareholder would be buying now if he could.......... rings well for me."
AI
