Saw this posted on Yahoo, any opinion on this, sounds totally unlikely to me
From the bankruptcy papers:
Class 1 Interstellar - Duke claim:
(by far the largest claim)
Amount of claim: $992,482 (plus a per diem of $220.59)
Interest: 12% per annum, to be accrued and paid upon maturity;
provided, however, the Holder shall have the right to convert accrued interest into shares of Quest Common Stock, on the terms set forth below, in lieu of receiving cash.
Then it says the following:
Upon the Effective Date, the Holder will have the right to convert principal and interest due under the note into shares of Quest Common Stock. The conversion price (the
“Conversion Price”) shall be the lesser of (a) $0.01 per Share (which shall not be subject to adjustment as a result of a split or reverse split), and (b) 40% of the average of the
three lowest Per Share Market Values during the ten (10) Trading Days immediately preceding a Conversion Date. The Holder will be prohibited from converting any portion of the Note if, as a result of such conversion, the Holder would hold more than 4.99% of the issued and outstanding shares…
It appears to me, then that this reverse split prevents them from converting into shares, (they would own significantly more than 4.99% of outstanding shares) and therefore gives Quest 5 years to pay off the loan, as per the above claim agreement.
Actually looks good to me, does anyone have a different take on this???
JosephFrank