Replies to post #20604 on Priority Aviation Inc (PJET)

[The Rainmaker]

Thats exactly what I was saying.

[janice shell]

Old ceo took debt with him by taking his business private.

What is the source for that? The last quarterly report is, maddeningly, unsearchable. Anyone who submits reports like that should be taken out back and shot.

[ForReal]

I have to disagree for one simple reason. Those notes were convertible to shares at a discount to market. So, that portion of PJET that went private could not conflict with the right of the debtor to convert debt to shares. Thusly, the debt must remain with the company that will allow conversion of debt to shares.
These being new owners, with little business experience would make it difficult for the debt holder to just write off the debt for future considerations.

This is just another typical "get out from under" transfer of the company to a new bunch of corporate officers. Janice made a good point about the lack of shares to cover conversions. Debt holders are not a forgiving bunch. It is about making money, not giving a new bunch a chance to become rich at the debt holder's expense.

[elkonig]

So if he took the debt he also took the assets of PJET. Nobody would take the debt without the assets as well.