Replies to post #5666 on Beacon Power Corp. (fka BCONQ)

[ilenes]

Mike, they are selling assets to repay DOE, although they've agreed to a haircut if necessary...this was a bit confusing and rushed, so I'd like to see the documents being submitted to be certain...but then since there are no other creditors of any size, depending upon sales price, we should be OK...

As background....we had three changes to the schedule today. First was moving from 2 to 1:30. Then, we got there and the attorneys asked for a recess until 4 (later changed to 4:30). Out we all marched, only to come back at 4:30 and have the attorneys ask for another recess for 20 mins. By the time we got back, everyone was anxious to get out quickly, and the attorneys promised to have the clean doc to the court by 7PM, so what we heard in the last portion was a very quick rundown of the new agreement. By the time you read this, the court and all the parties might already have it in their hands...

[RoboTrader]

Look into Pilgrims Pride and Chemtura. Two companys that had Asset value higher than Liability with notes/loans that were due to be paid off, they just didn't have the money to pay it off and couldn't refinance with the creditors due to economic conditions.

Pilgrims Pride sold of a part of their business, it went from about .13 cents to where it's at now; $5.00 or so. Chemtura sold part of their business, restructured finances, and eventually went from .01 to about $1.80 before BK exit but then there were other issues that screwed investors and now they're around $10.00 (with new shares).

The point here is that Beacon will be selling a part of their assets to satisfy whatever amount the DOE wants, then business will resume as usual for Beacon. With the float being so small for BCONQ and Assets > Liability, commons should be alright.

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