The Company has been working on a plan for 2011
While management has been attempting to move forward the current assets of the Company and identify new ones, we have been overshadowed by the outstanding debts and complications in developments. The Company's creditors have included a series of outstanding debts left behind by past management which have included; legal services, settlements from legal actions, well services due from past operations and the like. Over the last few months management has been increasingly under pressure from the Company's creditors and while it has been a tough negotiation management believes that a resolution is being reached to prepare the Company for a stronger new year. These discussions are ideally leading to the final settlement of these debts through transforming the creditors into shareholders with a vested stake to see that the Company does well going forward. Under this ideal scenario, the majority of the current debts outstanding if not all of them will be converted to stock to free up the balance sheet and make Green Star more attractive to potential deals and possible takeovers or mergers.
In this case a takeover or merger (reverse IPO) is the acquisition of a public company by a private company to bypass the lengthy and complex process of going public. The transaction typically requires the merger of the acquiring company. Sometimes called a reverse takeover or reverse merger, shareholders of the private company purchase control of the public company and then merge it with the private company. The private company shareholders receive a substantial majority of the shares of the public company and control of its board of directors. The transaction can be accomplished within weeks once terms are reached.
The transaction involves the private and the public company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing, the public company issues a substantial majority of its shares and board control to the shareholders of the private company. The private company's shareholders pay for the public company by contributing their shares in the private company to the public company that they now control. This share exchange and change of control completes the reverse takeover, transforming the formerly privately held company into a publicly held company.
In anticipation of these steps management is planning to settle all debts outstanding, appoint new management, become fully reporting with OTC Markets and complete a similar transaction as indicated above. The end result would be a recapitalized company with little to no liabilities with a strong asset base and new assets to develop. Management is pleased to announce that they are currently in advanced discussions for this plan described today.
To finalize these steps management asks that anybody who has any outstanding issues contact Investor Relations to prepare to have them taken care of to the satisfaction of the party involved. Additionally any feedback regarding this strategy is requested in order to evaluate the desires and concerns of the current shareholders. Please contact Investor Relations by emailing IR@GreenStarEnergies.com.
On this basis management has put together a 30 day plan that is set to accomplish the following:
Settlement of all outstanding debts for shares in the Company;
Filing of all financial statements through the most recent period;
Filing of all required disclosures by OTC Markets to improve status to Current Information Tier;
Reorganization of the Board of Directors and management team;
Acquisition or merger of new private oil & gas company.
Please note that at this time management is not considering any sort of split of the share structure and has no intention of doing so unless there is a shareholder supported and compelling reason to do so in the future.
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