What in the world were Basu/Swift/Burg et al. thinking when they carried out the coup?
And what is the game plan now?
Chapter 7 bankruptcy? I have little experience with chapter 7, but I believe that a chapter 7 filing would result in a bankruptcy trustee gathering and selling Xechem's assets to pay the creditors.
I do not see how the license to sell Nicosan would be exempt from this process. Unless Basu's hedge fund or Swift has a lien in the corporation's rights to Nicosan that would make it/him a secured creditor, I don't understand how Basu/Swift could simply avoid all of the corporate debt while taking its most valuable asset. (I think if this were possible, chapter 7 proceedings would have been commenced by now.)
Moreover, I would assume that the documents relating to the NEXIM loan and the UPS (Export-Import Bank) loan may contain language giving those lenders secured status in the event of default and/or bankruptcy (and remember that those loans preceded the loan to the hedge fund).
Is it possible that the hedge fund paid $7,000,000 without thinking through these problems? Is it possible that Burg was not aware of what Dr. Pandey was doing before the hedge fund loan proceeds were paid?
Perhaps Basu and Swift will ultimately pull a rabbit out of the hat, and thereby jettison the common shareholders and all of the debt, while taking ownership of the corporation's rights to Nicosan. But how would that result be viewed by NIPRD, NAFDAC, NEXIM and the Export-Import Bank? These are serious players, not to be taken lightly (expecially if you are trying to manufacture and sell Nicosan in Nigeria).
Finally, how would a corporate bankruptcy filing absolve any individual from any personal liability?
Reading between the lines, I wonder whether Basu and Swift are in above their heads . . . way above their heads.
BDB
