RE:New Proposal documents. We are fuc!ed.Ok Peeps... I do not read this document like you do, but I could easily be mistaken.
They are again trying to raise money. If you look at 5.A.32. - the proposed restructuring has the Stalking Horse Investment Term Sheet which is composed of Mazen and any other stakeholders who would like to be investors. This Stalking Horse is an investment group that must repay creditors who wish to be repaid and they are listed under 32. One of the debts that must be paid, is the KERP (Key Employee Retention Plan) which documents how the company needs to keep their key employees and that they must be paid their hourly wages or salaries. The KERP document incentivises the employees to stay with Argex through these proceedings, even though past this, their employment is not guaranteed.
Then,in VI.A.40. It talks about the DIP lender, which, as I read it, means Mazen has reached an agreement with the Trustee to fund operations up to $1.5mil of which he is willing to add $200k, along with other investors of the Stalking Horse Investor group. This amount up to $1.5m jumps to the front of the line as far an repayments go in the future.
Then, in VI.B there is a $150k adm charge that will be incurred by The trustee and his council for the work done on these proceedings. This charge is obviously a needed payment to them, but also comes to play later (later).
Now, the Stalking Horse Investors agree to be incorporated as "Newco 2.0" as seen in Exhibit-3. This exhibit also outlines what Mazen has put into the company in the past, and the $200k he is willing to add the Newco 2.0 along with other investors. This company, I believe will be the new lender if they can gain enough interest and funding to go forth. If they do not have enough funding through this group of investors, then there is an auction that will take place on Aug 6. But I believe the intention is for this Newco to be the first in line lender.
It is my understanding that this Newco company will be able to bid on Argex if it goes to auction? Help me out here... However, if it does go to auction, Newco's bid will be considered first and any other bid will not be cosidered unless it is better than the offer Newco gives.
Now, I may be all wet and have misread everything since I am not a lawyer, but it seems to me that the intention is to keep Argex intact for and through this process.
And I apologize if my case is not well-made. I should have taken notes while reading this, as one thing after another kept coming up, but now my recall is not so good. If anyone else has read the document in whole, let us know if your understanding is different than mine please.
Still somewhat hopeful!