I do believe that is a possible scenario. Unfortunately Exile shareholders didn't make out well in a similar transaction. Not only did they not receive much of a premium they also lost a lot of the upside potential that is inherent in a smaller company like ERHC. Much like the convertible debentures, this would be an act of desperation on the part of ERHC and wouldn't really be a good deal for ERHC shareholders. If you don't believe me, ask the Exile shareholders.
Yes this is undoubtedly the scenario that is playing out. ERHC shareholders will be given two options 1) Accept the low ball NGAR offer for ERHC assets OR 2) get nothing as Ntephe dials up chapter 11.
"7. Arrange private placement funding (earnest money for acquisition of ERHC Energy)"
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