So what's the real? Why a pre-packaged chapter 11 filing?
Why not a pre-packaged chapter 11 filing?
Right now SCHS is facing a major legal claim by shareholders for lack of fiduciary integrity, which even the court has recognized that the company should not have been a chapter 11 candidate since the underlying assets were worth more than the 'fire-sale' offered by Bayside Capital. At issue is how and why Lavelle and the Board of Directors handled it. I see a major legal claims ahead to make the entire 'gang' personally liable.
Don't think so --- David Ploeg is considered a 'straight shooter' when it comes to accounting practices. What I have questions with is the need to file for chapter 11 in the first place without a 'pre-package' deal, considering the substantial shareholder base. Even a short form rights offering to existing shareholders could have netted the company at least $100 million. I personally think Ploeg and the directors are going to be hit with litigation and maybe a TRO?
Right now, unless the held the stock at higher prices, say $.90 to $2.00, you can use the Zack buy notice to claim 'harm' by a SEC COMPLAINT. From what I can determine the commission would be forced to look into this and stop the current static.