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SIGA Technologies Inc. Message Board

  • golongin2008 golongin2008 Aug 11, 2014 3:07 PM Flag

    Siga Should File Re_Org BK

    A judgment is an unsecured obligatioin unless the creditor takes action to make it "secured"...(ie, record a judgment lien against real property that may be owned by the debtor, etc). An unsecured debt can be dischaged in full in a bankruptycy proceeding. Since this judgment is not based in fraud or other action
    that might not be dischargeable, BK would resolve the problem quite frankly.

    Other general unsecured creditors debts could be honored and paid in full by Siga, and business would
    probably continue on as usual. Debts of secured creditors could also be affirmed and paid as incurred.
    The judgment however could be discharged in full. Once this judgment becomes final and the precise
    amount of it is ascertained, it is likely to be well in excess of the entire assets of the company. Therefore,
    by definition, Siga would be "insolvent".

    No need to appeal the case and try and post a cash bond to do so. Of course, current shareholders would be wiped out as well, so in that respect it might be somewhat problematic to most of you here. But Siga would go on to live again with a clean balance sheet, still lots of cash in the kitty, and a whole new set of enthusistic shareholders!

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