Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

Looks like this initial filing was to stay the auction and tie Empery up. The fact Ryan estimates there will be funds available for unsecured creditors reeks of bankruptcy fraud. We all know the liabilities dwarf the assets and all the reasonable assets were secured often by as many as 3 priority class.

Class 1: Empery
Class 2: Prestige
Class 3: Ryan

I believe the company has 120 days to provide a reorg plan but there really isn't much to reorganize. MSLP doesn't have any burdensome leases or contracts that can alleviate the debt. This was a Ponzi Scheme that sold vendors wares and revenues were collected by Ryan to pay his enormous salary and note interest and then the vendors were stiffed or payed pennies or unreasonable installment agreements that were not adhered. Who wants to manufacture MSLP products without a retainer that is at least Payment in Full of a potential purchase order before any manufacturing?

COGS were nearly equal to Revs anyway and we all know how Revs have declined under Ryan and losing any scaling potential and besides the only real rev stream is Costco and they are pressuring vendor price cuts.