Replies to post #74079 on California Grapes International, Inc (CAGR)

[PJC1]

Do you know that for a fact? As far as I know CAGR did not have the rights to import wine into China and all went through Franks company. In fact, their own press release says they can't import wine into China which is why they are seeking an import partner.

[pantherj]

I think you're going to be disappointed. The wine inventory is the asset that Bling-Bling plans to liquidate to pay debts. Which is why l'il jingles wants to foreclose on Frank's preferred shares ... because l'il jingles and the others are flat out in the cold.

This is actually a pretty slick move on Frank's part. Devious, conniving & down right dirty ... but slick.

The wine (the asset to be liquidated) was bought with shareholder money. The "loans" (which were made strictly as a tax dodge) were made with some combination of shareholder money and money belonging to CAGR and the other board members. Frank used the money, in whole or in part, for his own purposes ... and now files bankruptcy so he doesn't have to pay it back!

In the meantime, he still has ownership of all those lovely preferred shares which he can convert to common at anytime and sell as he wishes. I'm not an attorney, but i don't see any way in the world that Jeff/CAGR can foreclose on those preferred shares. On what grounds would they foreclose? I don't think foreclose is the right term anyway. Those shares are personal property, not real property.

Anybody out there have any experience with this sort of thing?