No I'm saying Floyd's conference call was just like GMXR's plan to emerge from bankruptcy. Sounds good but the lenders had other ideas. HNK doesn't even have enough cash and current assets to pay their current liabilities. It's called a cash crunch and the vultures are circling.
Do these actions sound familiar? Hope it works out better for HK than it did for GMXR.
Why did you file for Chapter 11?
The decision to file for Chapter 11 was taken only after the Company explored other financing alternatives to meet its liquidity needs. Over the past year, GMXR implemented various strategic initiatives to increase oil production, improve supply chain and production efficiencies, and reduce costs to increase cash flow. While these operating initiatives resulted in some success, natural gas commodity prices have remained low, and the Company’s oil and gas operations require ongoing additional capital expenditures. To meet these financial requirements, the Company actively sought financing alternatives to solve its liquidity needs. Unfortunately, it was unsuccessful in finding any viable funding solutions. After working with Company’s various creditor groups and advice from the Company advisors, the Company determined that it believed the rights and protections afforded under a court-supervised reorganization process, including access to financing and a proposed sale of the Company assets, would provide the Company the ability to meet its immediate financial needs to preserve the value of assets and to provide for the greatest recovery to its stakeholders.