Bankrupt and Distressed (BAD) Research and Due Diligence

[Madclown]

Ankit, are you hearing anything on SIXOQ lately. I am long quite a bit of SIXOQ in the anticipation that at some point in time, a Judge will stand up and say no to management and directors taking a debt strapped company that they own only a very small stake in and drive it into bankruptcy and then emerging on the other side of BK as a 15% owner in a healthy, delevered company. Defies logic. At some point, someone has to step back and take a look at things and ask themselves "does this make sense".

Hopefully Judge Sontchi will be the one. I feel certain of one thing though, these clowns are lucky that they didn't draw a Judge like Robert Gerber who presides over the CEMJQ case. He holds management's feet to the fire on the issue of management incentives and compensation. I cannot imagine what would happen if CEMJQ management proposed to give themselves 15% of the company but I might invest in a plane ticket to fly to NY to watch the fireworks at that court hearing.

I don't know that Resilient will be able to convince anyone to pay SIXOQ at 100% of face but they may be successful in getting some of what management has procured for themselves. With SIXOQ trading at about one-half of 1% of face there is a lot of room to run to the upside. The drawback is that we are on a compressed time schedule. It should be interesting to watch.