Replies to Post #60947 onHong Yuan Holding Group (HGYN)

Replies to #60947 on Hong Yuan Holding Group (HGYN)

02/16/14 8:41 PM

#60948 RE: FedUpToHere #60947

Really? I thought according to some peeps on this board who claimed to have insider info, Horizon made a deal with CERP last week!! It was supposed to be announced in a day or two after the bk filing once they ink the final details. Never mind, were false rumors!

RomanBoy

02/16/14 11:20 PM

#60951 RE: FedUpToHere #60947

Thanks FedUpToHere for the posting! I'm sure we all appreciate your efforts!

I find the 3 items below in the "Cereplast, Inc. Bankruptcy - Motion for Relief from Stay Abandonment with 30-Day Waiver" very interesting!

3 of the items from the filing FedUpToHere posted:

10. The debtor has no discernible source of of operating capital and Horizon does not intend to provide additional funding to debtor.

11. Horizon's notice of the UCC sale has generated interested bidders and at least one of the these bidders has expressed interest in exploring continued operations at the debtor's Seymour facility.

14iii. Upon information and belief, the debtor is not actively operating its business and has furloughed or laid off its employees.

How does Horizon know in 10 and 14iii above that Cerp has no capital and no one in working in the facility? Are they guessing? Do they have a mole working for Cerp? Are they watching from the street for production related activities?

And who are the interested party(ies) identified in number 11? In the Seymour facility no less!

Any thoughts by the board members? Sounds to me like Horizon is not happy and will say just about anything to sway the Judge that overseeing the BK.

badslinke

02/17/14 12:00 AM

#60967 RE: FedUpToHere #60947

Wow that was a fascinating read! A thousand thanks for following through and posting it here.

Horizon clearly believes CERP has no revenue and seems to be making an excellent case towards exercising the rights given to it under the loan agreements.

I guess it's a race against time at this point. MammaCangura sales don't start til April, though we can assume CERP would be earning as early as March to fill the preorders so the launch goes smoothly. The question is whether CERP has proof of near-term, inevitable income that defeats Horizon's statement of no operating capital.

If not, that's all she wrote folks! To be honest, I wouldn't mind seeing the Seymour facility taken over by someone else that stays in the bioplastics business. A new set of management may be just what CERP needs. I'd be willing to buy if that were the case.

Thanks again.