Replies to post #44104 on BioAmber Inc fka BIOAQ

[Churak]

I read the report...debt doesn't just go poof & disappear.

[1manband]

The debt was cleared, read the report, valuable shell with nols, common stock survives

.

That is not the case, as it would violate the law.

The debt was cancelled because it could not be paid - there was no money left. Therefore, by LAW, the equity also gets cancelled. The common shares do not survive, as that would be illegal.

Bankruptcy is not a "get out of debt free" card. Under bankruptcy, common shares are dead LAST in line for the assets. If there is not enough assets to go around, then everything that didn't get paid gets cancelled under the bankruptcy.

Including the common shares, which is exactly what will happen with BIOAQ.

Anyone holding BIOAQ shares at the conclusion of the bankruptcy will lose 100% of their investment.

[kevroc]

with respect as fellow long...

Debt cannot be "cleared."
Debt can be paid, settled, or discharged.

In this case (in DD first provided by m0n), Exhibit D pp 18:
CANCELLATION OF SECURITY REGISTRATIONS
the shares issued to; Bridging Finance Inc; HSBC Bank Canada; and Comerica Bank et al, were all cancelled.

NO OTHER SHARES OR SHARE CLASSES WERE CANCELLED. Nor, were other (common) shares mentioned anywhere. This means, for the purposes of the Visolis transaction, those shares HAD VALUE and the rights were surrendered by the holders (obviously for payment). IMO, that means commons HAVE VALUE.

I can only assume these entities surrendered their collateral because their loans are paid in full, via the Visolis transaction. Those shares were then cancelled.

Enjoy! :-)