Wise, whatever liabilities are attached to the assets bought are surely minor relative to total liabilities. Debt is not going to be attached to individual assets, but maybe there are liabilities such as leases or payments due to vendors, etc. Although I could learn more about it, I don't have the time to waste on reading the sale documents because I know that it's meaningless to the ultimate outcome of this stock. I'm not a know-it-all, and there's much about bankruptcies that I don't know, but I'm pretty confident about what I am stating here. The only reason I'm even responding is because I think you're the most knowledgeable poster on this board, and you have been helpful, and I'm trying to return the favor.
Even in liquidations, companies choose Chap. 11 so that they can control the company (and stay on the payroll) til the bitter end, and I think it's likely that there will be no conversion to Chap. 7, even though it is truly a liquidation, as I have seen many times before. Whatever assets of any value left in this shell of a company will go to the creditors. (I've seen a bankruptcy where no one wanted some minor assets, and the lawyer jokingly asked me if I wanted them or knew anyone who wanted them.) The $7.5 million doesn't come close to paying off the creditors, and the remaining liabilities only disappear after the creditors take whatever crumbs are left and the bankruptcy is closed, with the stock canceled. There is no equity left in this shell.
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