Replies to post #79222 on All American Pet Company Inc (AAPT)

[Leirum]

What you say is accurate. But then it always depends what those behind all could have in mind. There are various Scenarios I could Picture but then it would go to far and end in a Corner of speculation.

But to take up on your thinking:


AAPT has total liabilities of $ 5.8 Mio as of September 2013.

Let's say the IRS amount is paid in full 100 % and the rest with a Discount of 50 %. Then we are talking about roughly 3.4 Mio to be invested to get the Balance sheet clean.

But then you get as well the accumulated deficit which is roughly 28 Mio and if AAPT would start to operate profitable sometimes in the future then this 28 Mio would represent a tax-benefit of roughly 7 Mio. As a matter of fact, the Investment of 3.4 Mio would - if profitable in the future - already guarantee a return of 100 %. This is one of the Points in the Brainstorming behind bad debt deals.