Below are my primary notes from the bankruptcy filings.
The pro-forma number of shares outstanding is not 448,397 listed on the pinksheets website. This represents the total shareholdings of the pre-petition shareholder's who now own 3.75% of the equity in RSRN. Therefore, the likely estimated sharecount is likely closer to 12 million, for a market cap of about $12 million as well.
Also discussed is the exit financing for RSRN (available after emergence from bankruptcy):
“The final tranche that is expected to be not less than $1 million is intended to be not less than $1 million is intended as exit financing to provide working capital to allow (RSRN) to make additional sales and support its stock price through engagement of PR and IR firms.”
It also doesn't appear as though the company has any revenues as of yet. However, the plan discusses the company's primary product
"SurSITE was built by STI (former name of RSRN) in partnership with a European charter client, the Swiss Pool for Aviation Insurance (SPL). SPL is a consortium currently consisting of 16 major European insurance and reinsurance companies. During the development and implementation phase at SPL, numerous alpha and beta versions were deployed, tested and run by SPL, Swiss Re and Aon professional staff. The initial production version at SPL was v1.23. During subsequent meetings and system demonstrations at potential clients in the US and overseas, the system has constantly been upgraded to stay competitive. Current production version, v2.6, is ready to be deployed to an insurance group with multiple business units and/or subsidiaries writing high-exposure lines of business that utilizes complex reinsurance programs.” Later.. “SPL was put into “run-off” (cessation of writing new policies but taking care of existing policies) effective July 1 2007 after AXA acquired the top producing member company, Winterthur Insurance Company.
One item of interest related to AXA mentioned in the “Management/Boards of Directors” section is that “the Committee will designate either (i) one (1) of its members, excluding AXA”. Not sure what this means.. does it mean that AXA is a creditor but would be not be eligible for the board of directors? It’d also be interesting to find out what the feedback has been like from customers who have used the company’s technology. This is what will determine whether or not the reorganization plan lives up to management’s expectations.
[end part 1]
