BioRetorative Theraphies Inc. vs Desmarais, Tuxis et al
Disclaimer: First off I'm a dumba** investor, not an attorney so this is my opinion for what its worth, as to what is going on with BRXTQ vs Desmarais.
After reading a few court docs, Desmarais, et al loaned monies on multiple occasions to BRTXQ. In 2016 on loans, BRXT, (at the time), used their intellectual property as collateral in obtaining a loans. Demarais el al's contention is they are therefore owed the IP, before any other entity gets any satisfaction from BRTXQ. Allowing this action would cause BRTXQ to go Chapter 7 bankruptcy and the only entity getting any type of return would be Desmarais et al, a minority debtor. BY THE WAY, THE CLAIM WAS FILED MORE THAN 3 MONTHS AFTER BRTXQ'S BANKRUPTCY WAS FILED. (March 20, 2020 vs July 1, 2020 This should provide protection under bankruptcy law.
BRTXQ via their attorneys contend that the whole issue is non-statutory and is a common law matter. This simply means, this ruling would be based on what previous courts outcomes had been, historical precedent. Obviously, they wouldn't be making this contention if prior rulings were contrary to their claim.
The Judge's has already ruled in favor of BRTXQ going the Chapter 11 route where each party and the shareholders are made as whole as possible. Changing his decision and doing a Chapter 7 would leave the largest creditor, Auctus and most of the almost $15 million due creditors unpaid and the stockholders shares worth nothing.
So, the effort from BRXTQ's legal team is to do exactly what the Reorganizaton Plan states and treat Demarais et al the same as every other creditor. All would be made whole and the shareholders retain the value in their shares.
I can't see the Judge changing a ruling just to favor one creditor and shutting out the rest with nothing.
JMHO Airdale1
