AgFeed Industries Inc. (fka FEEDQ)

[finbar99]

>>Regarding upfront payments - when you addressed this before, thought I understood you to say that it was customary for BK firms to absorb the initial costs of doing the work necessary to petition the court to form the EC...with the understanding that, if successful, they would get the business and start billing the $40K per month for legal services and $20K per month for FA services (that BC requested as a cap during the cc, and had some push back).

It is customary from my experience. I heard them saying they would put time into this upfront, but there was a limit on how much time they would put in without requiring some seed capital. Until they can start a dialogue with the US Trustee they don't really know the extent of the uphill battle here, but they can't do that until at least two or three shareholders tell them to speak on their behalf. Until we are asked to sign an engagement letter that states we will be responsible for paying their fees, they aren't putting anyone on the hook yet.