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07/30/10 5:45 PM

#327755 RE: OldTymer #327729

puppy, okay. So then Xenonphon is correct; if the company accepts DIP financing and they go through the money and can't make it as a business and have to shut down, there is a good possibility that whomever provided the DIP financing could lose all of it, or at least a fair portion of the money provided.




yes, you bet they can lose .. dip takes first secured position on all assets .. if the assets come in short because of bad DD on the dip provider .. they lose if the company it can't make the cut as an ongoing business .. no one ( other creditors ) gets paid until the dip is cleared .. so yes they sure can lose

I don't see any where near the assets ( Dicon ) for any dip funding to happen for a public company .. maybe as a private company they could put together a plan .. but to stay public the plan must include a way for the company to get current in all of its filings and have enough cash to continue the operations and fund the operation .. and pay back the dip providers ( dip usually runs from 2 months to 2 years ) depending on the amount and the company;]'s ability to pay from the new business plan

I just don't see it ..

and contrary to opinion .. my credentials do have bankruptcy experience ...

and lawsuits can and due get filed for future performance of default on contracts and even win them sometimes

Queens Ballpark Co. claims it's entitled to immediate payment of the entire remaining value of the contract -- $2.62 million -- because SpongeTech is in default.
http://www.nypost.com/p/sports/mets/ny_mets_beaned_by_ads_mKGomQWFRpA7cA8iDJuPKP