Raven, It may be that the absence of communication w/ the S/H's was in keeping w/ a deliberate scheme to take the co. into BK. Any public comm. that might be considered even mildly positive could expose the co to lawsuits. However, the lack of comm. and candor about the condition of the co. could in itself be grounds for S/H'r suits - both current and new S/H's, imo.
If this theory is correct then a reasonable assumption might be that this scheme began very early on, maybe as far back as the change in control of the BOD, perhaps even sooner.
The private comm. w/ the pipers is also suspect. Even if confidentiality agreements were signed prior to the disclosure by mgmt. of material non-public information w/ the justification that the pipers held an illiquid investment.
But, we now know that some pipers were permitted to convert some of their bonds to common stk (up to the available authorized). In fact ALL pipers were given the opportunity to convert. It seems plain that any shares sold based on material non-public inside information is INSIDER TRADING, one of the most serious violations of securities law - just ask Martha Stewart. Both mgmt and any and all pipers w/this information are @ risk of prosecution under the securities laws and some might also be @ risk of criminal prosecution.
It also seems plain that the only way mgmt. and selling insiders could absolve themselves of liability of these very serious crimes would have been for mgmt. (previous to any sale) to disclose publicly, any and all information disclosed privately.
We know this never happened.
For the record, generally speaking, anyone found guilty of insider trading faces penalties of: 1)disgorgement of all profits or proceeds PLUS fines up to 3X the proceeds/profits and JAIL time
So, it seems some investors rec'd special treatment. There have been two classes of investor here apart from the different types of securities held (stk vs. bond). The lenders (pipers) were treated to comprehensive briefings and the OWNERS (stk. H/R's) were deprived of any information that could have enabled us to make an informed decision (buy,sell or hold ?) about our considerable financial investment in Xechem Int'l.
Now that the co. has been scuttled, license lost, the plan through BK apparently is to further treat the pipers in a special way - again @ the expense of S/H's and other less senior lenders/creditors.
I find it hard to believe that even the most scandalous of lawyers (whom ever they are)could argue for the co's plan w/o suffering spontaneous combustion. I find it harder to believe still that the judge and trustee would sign off on this Rube Goldberg machination.
I don't think they will.
All in my opinion.
Market Data 
Markets 
AI
