AgFeed Industries Inc. (fka FEEDQ)

[wall_street61]

Define VIE and I don't have a clue who Madaniels is or what he said.

There is a VERY real possibility that the now present insiders of the debtor will try to conduct just this one auction and reorganize around the Oklahoma assets and Chinese assets, or also sell the Oklahoma assets and keep the Chinese assets in more or less a shell company all-the-whilst paying themselves large salaries and burning up what little value may be left for shareholders.

Don't think for a minute that it can't happen and it very well may.

For those of you that may have taken away from the conference call that getting 'a seat at the table' means you will have real leverage ---- you are mistaken. It's more of an oversight position if anything.....which means you may get a first hand look at watching any value slip away and you can't do a damn thing about it when the debtors fall back on the 'business judgment rule'.

The best outcome when you sell the business that brings in the cash is to go into liquidation mode asap, which means conversion of the case into a liquidating trust with a trustee at the helm. Theoretically they have to answer directly to beneficiaries of the trust, and if there is equity, that means you. The main advantage is it limits the cash burn. Once that sale goes through, you are looking at a melting ice cube.