john_j has a legitimate point. You can't dimiss it offhand. By issuing convert debt, debt becomes senior to equity holders in a BK. Which possibly means all the IP patents go to them in a BK, not us. But? we also knoe that filings said that in a BK, all patents revert back to the NIH. So WHY would the insiders issue band aid DEBT, over just doing bandaid EQUITY. It's all the same, in essence. if RGRX goes BK, they aren't going to get any back owed interest anyways. I guess the real isue is a LEGAL boilerplateL one. And we don't know. In a BK, does all IP revert back to NIH automatically? Or do BONDHOLDERS have claim to the remaining IP - ahead of the NIH? if bondholders have first claim to IP over NIH....then john-J's point is legitimate. RGRX could go BK, and the debtholds get TB cheaply, for whatever they paid in the cumulative bandaids...around $1 million so far?
Who's to say they are not currently working on a reorg plan that includes NIH? Could be part of what is taking so long. That and possibly they are trying to get everyone important into the deal via the convert so they avoid any lawsuit issues once announced - thus the new names.
Look, I am sitting on basically a 100% loss so I am holding for the optionality because it doesn't cost me anything at this juncture but the writing is on the wall. Like I said, all you have to do is read the 8Ks and they are basically telling you exactly what they are doing per SEC requirements:
"In most bankruptcy cases, the role of the SEC is limited. The SEC will review the disclosure document to determine if the company is telling investors and creditors the important information they need to know, and to ensure that stockholders are represented by an official committee if appropriate. "
Hey sno, we all are aware of pecking order of securities in BK. So, the basis of the conspiracy theory is that note holders will make out on liquidation while we will not. Now, knowing that Italians were part of this last note, do you really think liquidation value(IP) will be worth anywhere near the cost basis(forget profit) of their investment over the years?? And owning it means nothing, HK company already has rights. They want company to survive and will only make if this company survives. This is aligned with shareholders.
The rights that Lee's has for TB 4 aren't that onerous. China isn't that big when you compare rest of world, europe and USA rights still owned (with ST having some aspects). If the debtholders get TB 4 first in a BK (over NIH)...a deal is cut with ST. Because only ST has ability for doing real trials with real money. Mgmt & McNAy woudl grant ST significant ownership of TB 4 (if they get the IP in a BK)..so ST can do TB 4 trials right and on time. ST is sick and tired of Finkestein. Fink washed their money down the drain on poorly done trials, time and time again. ST would do it right. McNay knows it. So does Fink & Goldstein. They accede to ST. And they give ST majority rights, and they take the ride with minority equity....for the handful of hundred $K they put in... WHY else would the bandaids be DEBT and not equity? because debt is senior to getting what remains of all assets in BK.