Comerton Corp. (COCM)

[rocketeer357]

I disagree. They offered up .05 a share because they had no choice. The lenders need to try and salvage their principal. It must have been clear that SPHE couldn't make interest payments and therefore, was technically in violation of their lending agreement.

What choice did the lenders have? Management consultant/ICT companies have very little in the way of hard assetts which could be used to secure loans. The only chance they had of retrieving their principal was to cut some slack to SPHE and hope for an improvement in the future.

It's better than nothing, which is very much what they could have been looking at if they hadn't cut the .05 deal