Replies to post #230 on Americas Energy Company, Inc.(fka AENYQ)

[First Crown Research]

Okay so there's a market for AENYQ because the shares haven't been cancelled. You can get all of the information regarding this case off of PACER, but you have to sign up for it, and pay .10 for every page that you view. I'm learning as I go with this bankruptcy process, but this is some of what I've gathered from this case so far.

Evan's Coal, the wholly owned subsidiary of America's Energy, is the only thing that potentially has material value in this case. Furthermore, looking at the schedules filed, the Coal Mining leases valued at $10.5m. Sooner than later I'm assuming these leases will be auctioned off because since the filing of this case the trustee is going through them and either assumes it or rejects it.

At this point in time, the trustee and Bradley and Susan Smith are before the court, arguing over whether the lease between the Smiths and the Company should be assumed (the Trustee argues it should be assumed, the Smiths claim that the company has breached the agreement). What initially re-sparked my interest in the case is that the Trustee has said that since the time of filing this individual lease has generated $77,000 in revenue.

Moreover, another development in the case is that some of the equipment has been auctioned off. One of the largest creditors claims is Barbara Evans' (same party that Americas Energy initially purchased Evans Coal from) and that claim was valued at 1.5m and was secured by this equipment. I forgot the exact number that the equipment was auctioned off for but it was near 1.25 I believe.

The old management in this case is gone, and they tried to pull a fast one and file a POR but it got shot down in court and a Trustee was immediately appointed. I don't know if this whole thing was a fraud, if shareholders are entitled to take action against them, or what a reasonable value for these leases is (surely it's not 10.5m). Coal prices have been improving though.

There may be something in this case that is just way over my head, that an experienced distressed investor can point to and say "Joe you're an idiot, this equity is a flat zero" but I haven't talked to anyone else out there that is even following this case.