JB says that there is no way without the loan, that he can stay in business. Period [color=red][/color]This was true before he filed the the BK.
WHY?? Because he has no product inventory to sell anything from..and his efforts to sell PPs or obtain credit had failed...
DESPITE the demonstration of his wares at SHOWS. He had practically exhausted all of the money CDEX had..only about 7 thousand in the bank.
SOMEONE or some person or some organization or some consortium of people apparently had told him "Get rid of all that debt that you owe and we will lend you UP TO a million.."
JB, by now well versed in filing BK, Blamed MP and a couple of others for filing a demand for payment..then filed for Chapter 11 as a "DEBTOR IN POSSESSSION"..so that he could continue to operate even though he had no money to operate on...and in reality should have filed for chapter 7.
NONE of the CDEX creitors had secured loans..so whatever assets
CDEX had would be distributed to them as second layer claimants..
unless the court approved a reorganization plan..in which CDEX would keep the assets but the creditors would be wiped out...or forced to wait forever for a portion of what they are owed. NO MORE DEMANDS FOR PAYMENT.
NOW the stage is set..So here comes JB, he says to the court..
LET ME GIVE THAT FRIENDLY PERSON(S) A CONTRACT THAT WOULD MAKE THEM SECURED CREDITORS..AND THEY WILL SOLVE EVERYBODIES PROBLEMS BY LENDING CDEX UP TO A MILLION DOLLARS... WE CAN STAY IN BUSINESS FOREVER MORE AND GET ALL THAT STUFF EVERYONE IS EAGER TO BUY READY TO SELL AND SELL IT...NOBODY WOULD LOSE, ALL WOULD GAIN IN THE LONG RUN..WITH ALL THE PESKY CREDITORS UNABLE TO DEMAND PAYMENT, WE CAN GET CREDIT OR SELL PPS ENOUGH TO FINANCE US..ALONG WITH ALL OF THAT PRODUCT THAT PEOPLE ARE SO EAGER TO BUY ROLLING OUT OF THE DOOR.. THAT MILLION BUCKS WILL CURE CDEX FOREVER. (continued)
AI
