Replies to post #3944 on Capital Growth Systems, Inc.(fka CGSYQ)

[fly_fisherman]

I gotcha....


I purchased a corporation (private) 5 years ago and I did it via an asset purchase agreement. The reason we did it this way was to avoid an possible liability or risk of lawsuit down the road from prior commitments or practices of the corporation. They had debt on their books on their books which had been incurred but not allocated to taxes. We forfeited that for safteys sake. Had we purchased the corporation outright we would have had the debit for right off but would also have had the risk...

Now this is a public company but I think this could have some of the same characteristics. The debit does not go through with the asset purchase nor does any possible lawsuites or liabilities do to prior activities whatever they may be.

Now if a r/m were to occur back into the cgsyq, are the debt forgiven that company when the assets are sold out?? If we r/m right back into it we dont want to be stuck with the debt.. I think I already know the answer to this but would like feedback...


Now the huge if. If the company sells it assets to an already private corp with revenues already and the combination of companeis along with revenues come back into CGSYQ and pivotal already owns a huge portion of those shares. We all could be setting pretty with a share value much higher than the pps prior to the bankruptcy..

Is that a correct statement???

If so the value could be well over .20 cents or so...