InvestorsHub Logo
Followers 85
Posts 314
Boards Moderated 0
Alias Born 06/20/2020

Re: None

Wednesday, 09/16/2020 11:28:04 AM

Wednesday, September 16, 2020 11:28:04 AM

Post# of 73897
Facts Regarding Common Shares:

(1) Original Plan NOT Happening. The original Chapter 11 Bankruptcy Plan Proposed in March would have allowed TCA to take the company private and cancel the common shares. That plan is NOT moving forward per Monday's filing. For context and background, TCA was ZNGY's Sr. Secured Lender (i.e., their bank) and promised the company $10M to be paid out in several installments over time. Here's the 8K to confirm that fact: https://www.otcmarkets.com/filing/html?id=13135065&guid=AFo6UWzJqebvIZh

It turns out that TCA was running a Ponzi Scheme so they didn't actually have the $10M (unbeknownst to ZNGY or TCA's many other clients and investors). TCA was a predatory lender and settled claims with SEC on May 11 for fraud and TCA remains under investigation. TCA was also placed into a receivership so they do NOT have any resources to fight here. They have bigger problems to worry about - like staying out of federal prison to start.

TCA wanted to do a hostile takeover.

(2) 9/14 BOMBSHELL FILING: Per Monday's filing (9/14/20), the hostile takeover attempt was DENIED. The original plan that would have cancelled shares is 100% NOT happening and ZNGY is working on a new plan. Link to filing here so you can confirm for yourself:
https://cases.stretto.com/public/X038/10048/PLEADINGS/1004809142080000000017.pdf

The 9/14 filing discussed the development that TCA was placed into a receivership by the SEC so the original plan would not be moving forward. Then ZNGYQ dropped this BOMBSHELL:

"In light of this development, the Debtors have been negotiating with various third parties to obtain funding for the Debtors. The Debtors have had a number of constructive discussions. In the past week, the Debtors have identified a third-party lender willing to lend to the Debtors and are working with the Debtors’ management to structure a bankruptcy exit."

That's HUGE! Anyone saying that ZNGY will not get out of bankruptcy is just plain wrong. TCA is out of the picture and ZNGYQ has found their White Knight to assist with funding their bankruptcy exit. ZNGYQ never wanted to take the company private; that was all TCA and now that TCA is out, a new plan can be established.

(3) FOLLOW THE MONEY: Notice the language in the filing. "In the past week" they've found a new lender. That's very interesting because 1 week prior to the 9/14 filing, approximately $4,000,000 worth of COMMON SHARES were bought when $ZNGYQ started that week -.0001 just a dead "Q" stock.

If you think the $4M flowing in 1 week prior to the filing announcing that they have found a 3rd party lender to assist with BK exit is a coincidence, then I have some oceanfront property in Oklahoma to sell you.

(4) NEXT STEPS: The new plan has not been made public yet and it appears they are working out the details. One can safely assume that the White Knight 3rd party lender identified in Monday's filing is a lesser unsecured creditor that has loaned ZNGYQ money and is familiar with the facts of this case. The creditor has an interest in seeing ZNGYQ succeed and said creditor has confidence that ZNGYQ will succeed if they can get out of this bankruptcy as it should have never been triggered in the first place but for the fraudulent actions of TCA.

One such creditor is Auctus Fund LLC, the same creditor who helped in the other BK case in which Commons were preserved.

(5) White Knight: Big Money Players who have the funds to bankroll bankruptcy exits don't do it out of the goodness of their heart. Their expecting equity returns and a VC can do something nice with $ZNGYQ's OS here. https://www.investopedia.com/terms/w/whiteknight.asp

(7) The details must be worked out but you can see from the 8K linked above that TCA must own quite a bit of stock at this point per the terms of the prior deal (that was reached before their fraud was known and confirmed by the SEC). Under the law, TCA cannot derive a financial benefit from their fraud; therefore, it is likely their shares will be retired and the OS made a lot smaller and TCA will receive nothing in these BK proceedings. Other than TCA, the remaining debt is pretty small here so it wouldn't take much for the new 3rd party lender identified in Monday's filing to provide a bridge loan to help ZNGYQ remain fully intact - including COMMON SHARES. Remember, it was TCA's plan to take them private via hostile takeover. ZNGYQ has new life now with the emergence of a new 3rd party lender willing to fund their bankruptcy exit.


Here's a link to ALL court filings in this case so everyone can do their own DD and decide for themselves based on FACTS: https://cases.stretto.com/zenergybrands/court-docket/#search

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.