It seems fairly obvious.
If Dutchess Capitol is willing to sell their debt at a discount, then what does that say about their perceived value of DNAPrint?
It says that the return on selling the debt at a discount to this group is more than they can get by selling off the assets individually.
It says that they have reviewed the market for the assets and found no other takers. This is not surprising since management did everything they could to leverage the assets before they left. Who knew better the value of the assets or the people that would be interested in those assets than management. They tried for months to find someone interested, and couldn't.
Consider that even if some subset of the company say the Ancestry/Witness stuff could be separated out and formed the foundation of a business if unencumbered by all the rest. Why wouldn't management have done that? A simple business plan taken to the SBA would have easily been enough to obtain start-up funding. The assets could have been sold to the new company and the money used to continue the effort of DNAG. It would have been an easy and obvious step. The only reason not to do such a thing would be if the product was not sustainable. If it cost more to process the kits than they could be sold for.
Dutchess is not considering selling control of its assets in order to help the company out, it is doing so because it thinks it can get more than they are worth by pursuing such a sale.
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