Replies to post #22135 on Broadside Enterprises Inc. (BRSE)

[equijohn]

The Debt it owes that BRSE would have absorbed will be gone. We will own 86% of a debt free company. Seems positive, am I missing something?

[Smilin_B]

Here is your answer Sprycel:

Framepool filed for insolvency. This merely means they are letting their creditors know they are incapable of meeting their debt obligations. This is not a bankruptcy filing. If the company DOES file for bankruptcy protection, then they will go through the bankruptcy process and all debts will be discharged. This process typically takes, on average of 1 year to complete, during which time the millions of dollars in revenues generated , go towards business operations versus the servicing of debts. Framepool then emerges BK with a clean balance sheet.BRSE owns 86.6% of Framepool so naturally BRSE shareholders benefit as Framepool's revenues are accretive to BRSE's earnings. There is a reason why Christopher negotiated to NOT make ANY payments towards the Framepool acquisition in fiscal 2017. It is because he knew that the company was going to file for insolvency and bankruptcy protection during this timeframe.

So there is your answer.