and solve the problem, I think they will sell this money maker to settle debt and receive some money plus royalties, or definetevely sell the company. Bancruptcy unlilkely, still huge assets to play the game
1)if I were the main shareholder/noteholder I would like to preserve my money and get back it intact with principal and accrude interest
2)I would act to sell technology/and other assets for 75 millions, and then liquidate company. By this way I would recover for sure at least 35/40 million $.
3)given that I don't think company is able to continue losing money and collecting setbacks, I wouldn't finance more...by buying shares and warrants at .05 diluting rest of shareholders. Company will continue to lose money.
4) Ch11 is high risk process, even if for secured lenders with lien on loans...judge will ever say the last word and the process takes a lot of time sometimes years
5)therefore liquidate company for 75 millions, pay back noteholder its 30 million loan and give commons other money, .60cents net of due debt
I know very little about the financial details but he makes more money selling assets and/or the company without bankruptcy. He is highly motivated to sell assets now and if he can keep the company alive that is probably better for him in terms of selling the technology over time. Selling the assets in bankruptcy is a fire sale. You never want to sell that way if you have other options. We and MHR have the common interest of avoiding bankruptcy.
to my understanding, he has a lien on the assets, but only to the extent of his note. They owe him $30 million, if they sell B12 for $50 million, they keep 20. I'm sure others have more informed opinions, if they are still around. Though bankruptcy is clearly on the table, they still have cash through May, they can re-structure the note (if rachesky is willing, time to get bent over again), and NVO supposedly loves the technology. But then again,we have been ready and waiting for them (NVO) to move forward on GLP-1 since May