To Anyone that can answer:
NIR Group used to engage in "extensive due diligence reviews" *cough*
before making investment decisions on behalf of the AJW Funds.
We all know what Corey Ribotsky's business model and strategy was:
To provide PIPE financing to distressed emerging growth & start up microcap companies in return for deeply discounted debentures that are converted into equity and sold into market as fast as possible.
I'm the forum moderator for a company that had such dealings with NIR Group back in 2005 - 2006.
That Company is Safeguard Security Holdings - SSHS.PK
Here are their main websites: http://www.safeguardsecurityholdings.com http://www.systemsgroup-us.com
Here is the forum on I-Hub: http://investorshub.advfn.com/Safeguard-Security-Holding-SSHS-1455/
Undoubtedly many of you are familiar with Michael Gelmon and his intimate relationship with Corey Ribotsky/NIR Group. Well, he's also the Chairman, President and Director of SSHS.
If any of you follow SSHS (or any of these NIR Group PIPE financed entities), you will note that many, if not most/all have been placed on a "DTC Chill" and are limited to closing transactions only.
In SSHS's case, back in 2005-2006, NIR Group "funded" them approximately $2,500,000. According to Michael Gelmon, NIR has come no where near close in converting this debt amount into equity and distributing it into the open market.
Now that NIR's family of AJW Funds has been put into official liquidation by Price Waterhouse Coopers, NIR Group, for all intents and purposes, has fallen into receivership. http://ajw-group-liquidation.com/index.html
What becomes of the outstanding debt that Safeguard Security Holdings (SSHS.PK) owes the former NIR Group due to the majority of the CD shares having never been issued, converted and sold???
Michael Gelmon has stated that NIR Group hasnt issued ANY conversion notices to SSHS in well over 1 year.
The stock, like most, has been placed on DTC chill and Deputy Chief Compliance Officer of the DTCC ,Ms. Susan DeSantis, has issued Michael Gelmon a letter from their legal department requesting further information. Evidently Michael Gelmon has been pressured by shareholders to submit all information to the office of the DTC, so that the underlying common stock could once again trade freely, unrestricted.
Would any of you happen to know (thru your own experience in other NIR funded stocks), what now becomes of the outstanding debt these "distressed" companies owed NIR??
Does that debt have to be paid?
If so, is it structured at pennies on the dollar, etc - or is the debt simply cancelled due to the liquidation of AJW Group?
Looking forward to your educated opinions and thank you kindly. Disclaimer
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