Here is why:
1. All the mentioning of BK is just to cover their as.. and to discourage the Ambulance chasers and thugs from filing further litigations.
2. Cost of running company's operations is cut to the bone by terminating all the full-time employees and hiring Benner's hourly employees to run as a shell company. This shows they will still be in business until OMONTYS is re-introduce to the market.
3. Restructuring firm is hired not to help them file BK but to help them negotiate their outstanding commitments and liabilities. Why in the world a company filing for BK will think about taking care of liabilities and reducing the deficit.
4. $46 M in cash as of March 31, 2013. They have lot of cash to survive with all these liabilities for over a longer period of time.
5. Hedge funds are constantly bashing and trying to get the shares from weak hands.But stock is moving back from $0.62 to the current levels. Lots of day trading and short covering is in effect. Big institutions are still holding their shares.
I have more reasons to believe what I said in the subject line but I will stop here for now.
Here is not why:
1. Ad hominem attack. People who suffered from AFFY's drugs and failures to disclose hire lawyers to represent them to recover losses. Insurance is available. AFFY's disclosure of potential for bankruptcy proceedings is based on its dire financial circumstances cannot honestly be characterized as CYA for future litigation.
2. While it is certainly true that firing virtually ALL employees saves money, it is also a very good indicator that AFFY is shutting down operations and going out of business. Yes. AFFY will still be in business after its Chapter 11 reorganization is concluded. After its reemergence from Chapter 11, Takeda may decide to re-introduce O to market, but it will not happen anytime soon.
3. The Brenner Group's PRIMARY EXPERTISE is guiding technology companies through bankruptcy proceedings. All companies going through Chapter 11 reorganization take care of their liabilities and eliminate their deficits. That is a primary goal of Chapter 11 reorganization.
4. Not True. From AFFY's 1stQ 2013, AFFY has just $5.064M Net cash calculated as follows:
Cash and cash equivalents, plus Short-term investments, plus Long-term investments = $55.049M
Less: Total fixed contractual obligations of $49.985M = $5.064M net cash available for operation
I bet AFFY will use its $5.064M to pay its officers' termination compensation and TBG and its lawyers for their services. AFFY will have a difficult time surviving the next 2 - 3 months IMHO.
5. Hedge funds have shorted against the box. Their are no shares available for retail to short. The paid pumpers IMHO are touting AFFY to allow the hedgies, MMs to unload shares on gullible retail.
YOU HAVE BEEN ADVISED.