Had Cereplast not filed BK the stock would have had value to any entity wanting an SEC Filing company, empty shell stock. The CERP CUSIP and ticker would have been worth a substantial amount of money to an acquirer, regardless to any new business operations. Shareholders would have had a potentially viable stock, just in a new venture / company.
Should Horizon be successful in having Cereplast's Chapter 11 converted to a Chapter 7 the CERP stock will be cancelled, and CERP shareholders wiped out. That's the U.S. BK LAW, not merely my opinion.
It is plausible that Scheer filed BK to protect his own assets and any recriminations from shareholders. It is also plausible (to me) that should Cereplast be liquidated and the CERP stock cancelled that any potential proceeds from the Magna / Hanover and Ironridge lawsuits would go entirely to Scheer since there would no longer be any CERP shareholders.
It is henceforth plausible that Scheer knows exactly what he is doing with a precise plan to deprive shareholders of any potential proceeds by first filing the lawsuits against Magna / Hanover and Ironridge and then subsequently filing the bankruptcy so that he would be the only remaining and aggrieved Cereplast principal.
If that is fairly accurate and / or plausible then it would make Scheer a brilliant strategist, albeit a consumately evil person.
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