Replies to post #20614 on Priority Aviation Inc (PJET)

[janice shell]

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.

Good point.

[integral]

Well, I know where you are going with your thought, however, selling the operating biz or wholly owned sub with all the debt, leaves an over $18 million tax liability to the parent company. Any NOL from an aviation biz will not apply to a pot company.

And the IRS will send demand letters, and yes, they will do your taxes for you and send a bill. When the pot company does not file, they will show up with vests and firearms, it is what they do best.

Relief of that debt is considered a gain. And the old CEO taking on $19+ million in debt, will not go well with the creditors. I could see an injunction and this held up for years.

This has just become a pump and dump, and a "not so hot" pot smoking child getting arrested while stoned in San Antonio, she might be considered a "Bad Actor" pursuant to Regulation D, and not be able to raise capital for the next nine years, which also includes acquiring a new CUSIP or name change. This part I don't know, I have to read Reg D again on the Bad Actor Rule.

[dcsteve]

Fact is those agreements signed only required for the company to increase the AS to 1b. That was honored and is done. Nothing else the noteholders can do with the new ceo stating no change in structure.