Replies to post #16978 on VirTra Inc (VTSI)

[ceres]

They must know something about future earnings that we don't.;)

[ByloCellhi]

Paul

I guess you do not know the bankruptcy laws. The company has negative networth and no cash. So the company is worth nothing dead. This is why banks and commercial companies assign credit based on tangible net worth so if something happens they get their $$$ back when/if push comes to shove and a company is dissolved. If the company filed chapter Xl then the stock would drop to nada and they would get almost nothing. Plus the leaseholders are unsecured creditors so they would have been the last to be paid.

The leaseholders had no choice - so much for L Kelly paying them in full which is what many thought he would do.

You take care

[domen]

PaulP, had the lease holders forced VitTra in to bankruptcy where would the money have come from to pay them off.
You said "where they probably could have gotten most of their money back." I doubt that they would have gotten 2 cents on the dollar. And if that had happened then all of us poor shareholders that you worry so much about would have lost everything.
Doug

[billpr]

While I expect the 3rd Qtr. to yield miserable results (150-250 sales).., I don't think there is going to be a huge rush to convert.. They waited this long on the B/S, they might as well wait out the "Merger" to see if it gives them any benefit.. .15 on the dollar is not exactly taking any more of a gamble than they already took..JMO

[5cap]

Most of their money back?!! The company was 7 or 8 million in debt, and as far as hard assets they probably had a couple 3.8 GHz pentiums waiting to go into a new simulator. I expect bankruptcy would have resulted in something significantly less than 1 cent on the dollar, which was likely made clear to the leaseholders and no doubt influenced their decision.

As I remember management also presented their future projections to the leaseholders. Just what they told them has never been publicly released as far as I know. As December has nearly arrived and the former debtholders must decide to hold or sell their first monthly allotment of formerly restricted stock, it seems quite important to know what the leaseholders were led to expect would happen by now.

5cap

ps
Here's another question for the conference call: Concerning the formerly restricted stock which becomes available to sell each month starting in December. Sales projections were shared with these people to help them decide to convert debt to stock. These projections should now be shared with stockholders since the company's performance versus those projections will be a factor in how much formerly restricted stock comes to the market. What level of sales was projected to occur by December 2005, and beyond?