Replies to post #78608 on Muscle Pharm Corporation (MSLPQ)

[Shavasana]

Musclepharm doesn't fully dispute accounts payable to Capstone. They due have a counter suit regarding timely manufacturing of product.

Per the MSLP filings:
The Company is engaged in a dispute with Capstone concerning amounts allegedly owed under the Manufacturing Agreement. Capstone claims that it is owed approximately $22.0 million in outstanding payables, of which $20.8 million was included in the Company’s accounts payable balance as of March 31, 2016. The companies are working to reconcile the $1.2M variance which relates to invoices not received by the Company as well as questions about shipping and receiving documentation to support potentially open invoices as claimed by Capstone. The Company disputes Capstone’s claim, and claims that Capstone owes the Company at least $13.5 million in losses caused by, among other things, Capstone’s failure to timely manufacture and supply the Company’s products. On February 12, 2016, Capstone requested a mediation with the American Arbitration Association. As of the date of this report, the mediation is scheduled for May 2016 in New York.

[Shavasana]

It is not in Capstone's best interest to attempt to bankrupt Musclepharm. They get nada in that scenario. This will be negotiated.