you had a business like ECTY and are swamped with debt and not enough income to pay your bills and no additional funding and lawsuits knocking on the door. How could you survive? The company is going to do bankruptcy to get out from all that debt. Some one would have to be crazy to purchase the company considering all the problems that they have and if they did they would give them pennies on the dollar. Hate to say it but the recent price rise is just because of the day traders or people that don't know the news. When they declare bankruptcy people holding the stock will loose all there money in one day. Worth the risk?
yes thats right under normal conditions but it seems you forget one but very important part.
the doe put more than 100 mio$ in the company what means gouverments[taxpayers]money would flushing into the toilet too without help.
i dont think that obama like a second solyndra disaster with upcoming discussions.
thats the very important difference to other companys they are be in the same situation.
next even if ecty would file bk the money is not gone in one day.if it would be you would not be here [i guess short]because you couldnt cover your position,means totally lost.
Sameer - thinking about this...I think legally, it would be better to make the buyout deal AFTER formal BK proceedings as then presumably you would be given immunity for debts and other liabilities that might be obscured during such negotiations. Realistically though, the whole point of a buyout at this juncture would be to scoop up ECTY's large market segment and that is not just limited to us "Investor Bagholders", but more importantly the Client Bagholders such as Atlanta Metro Govt who had a contract as well as other large concerns. If the point is to preserve goodwill, then it would be MUCH better to "save the day" as the new Company Face than to risk alienating these large decision makers by having them go through a period of unsupported uncertainty, I would think, anyway. They were partnered with Southwest Airlines, IKEA, Hilton Hotels, Kroger Supermarkets amongst others. If I were the competition, I would not risk those unhappy folks getting away. It would be worth it to swap out the chargers, let them know it will be a smooth transition, scoop em up and make BANK imho...and do all this while the current company is still alive but phase out the Ops Team asap and then engulf the ECTY name! They could also get our Investor Loyalty by simply COMMUNICATING and showing the tiniest bit of consideration (ie) giving us what ECTY was unable/unwilling to do.
The share price is only 27 cents...not like it can go down much more. Ravi seems like a career focused younger CEO. I don't think he or any CEO not near retirement age would want bankruptcy as part of their career history if it can be avoided. It would be better for his career as well as his executive staff to save this company or at least avoid bankruptcy and come out looking like winners than losers. Who knows though.
Agreed. For ECTY CEO, VC etc bankruptcy would be last thing they would want.
But my question is directed more towards the potential buyer. Wouldn't the buyer want to wait until the BK gets filed? The price may not go substantially lesser than what it is now, but it certainly will be less than what it is now and so should be worthwhile waiting...