BioRestorative Therapies Inc (BRTX)

[trader59]

Auctus has nothing to lose and had a $3+M convertible note that would be wiped out in the liquidation. As the DIP lender, they get paid first no matter what, so they don't have much at stake and any recovery of the $3+M loan is gravy to them.

If Auctus saw any sort of value in the company itself, and especially values being chirped/tweeted about, why aren't they just buying the whole shooting match. In a Chapter 11 re-org, they'd only have to satisfy the secured creditor, and there wasn't that much secured debt. The judge would likely allow them to give only partial credit to the unsecured, and wiping out the common stock would be automatic as Auctus took the lion's share of the equity for financing the trial. They could do that, and would do that if this company had any value whatsoever.

But they aren't doing that, now, are they? Nope, they're just sustaining a stinky pink company long enough so that they and their toxic lending buddies can get some money back.