Modern Energy Corp (fka MDRG)

[Mr. Bill]

Very True. I would suspect as with about any legal case, whatever the decision ultimately is it could be appealed.

This then could lead to a settlement possibly.

This is a very interesting case since brokers are on both sides of the case. (unlike with GVRP where it was basically the world against investors)

Several possibilities come to mind in terms of a settlement:

* ST pay out more than the current pps to buy "new" shares from the company - Thus about a 50% increase in the OS. The pps would have to be high enough to benefit the company (and shareholders) and yet not to high as to scare ST away. What would that price be? $1 to $2 a share? Who knows. This would result in giving the company capital to grow a line of business or conduct a merger or get off the greys.

* A court decision forcing ST to buy back the shares which they appealed but could not obtain a TRO on (after the decision came down). In this case ST might have to cover and then appeal? Not sure how that would all play out. Perhaps a more likely road would be the TRO after the decision while an appeal went on.

* ST prevails and the toggle is placed back on the company to deal with the issues with the RS.

This should be a very interesting situation because in theory it can at least be resolved in the market place. GVRP was a far more difficult issue to resolve in the market place.

Was the float here something like 500K or so?

Now assume that was the float and imagine an error occurring where 69 MILLION shares were sold for a company with an OS of 1.2M and a float of 500K. Now you understand the magnitude of the GVRP problem!