Amazing the BS that CDEx has pulled over the years, but thank goodness the world is round and has come around to 'do unto them'.
CDEX's first DIP emergency financing request was a doozie, asking the court to grant CDEX permission to obtain 1.5 million in secured loans against their $480K worth of assets shows their arrogance. They submitted no plan, no budget, no names of investors- nothing.
The Trustee saw it as a "loan to own" strategy where outside investors loan the company money against a senior lienhold on all CDEX's assets.
The new secured investors would be "lying-in-wait", if CDEX defaulted, the lienholders take everything and all current unsecured creditors get zilch.
In essence, it was a transfer of the tech scheme which was immediatey shot down by the Trustee.
Touche'.
