NeoMedia Technologies, Inc (NEOM)

[Poptech]

DM: JP is right that Colonel Baer is considering bankruptcy reorganization. It is his job to get us through this before his contract expires and that is a very real option.

It could actually be good thing for NeoMedia, but it is complicated by the fact that they are not at a breakeven. They could spin off /close the EU and take salary reductions to get closer.

It, of course, would be very bad on PPS. See AAMRQ for good example. (However, I just bought AAMRQ so it just depends on when you take a position in a BK).

BK would also introduce new problems including a forced default which would put the assets at risk. But here is the deal: NeoMedia doesn't need the patents. They haven't had a patent licensing deal in years - and there is very little cash licensing income (somewhere around 200k a year). They are unleveraged assets and a BK could help bring the value to the table. There is no way all the patents are salable so they may be able to keep some for bragging rights - maybe even the coveted '048 patent. It is hard to sell patents with three years left in the old-school retirement home.