RE: they're trying to cover their tracks alreadyThe paragraph removed follows.
On March 28, 2006 SAMSys announced that it had received a notice of default from the holder of the Debentures which it rejected. At that time, the Company, with the assistance of its financial advisors and the special committee of the board of directors, was still working to explore strategic options available to SAMSys and therefore had reason to believe that the realizable value of the Company’s assets was such that the Company was neither insolvent nor in default under the Debentures. Regrettably, the Company’s continued efforts to effect any potential transaction that could have been completed in a timely manner in light of the Company’s current circumstances and that would have allowed SAMSys to continue as a going concern or provide a return to its shareholders were unsuccessful. The only transaction to materialize in this context was a sale of the Company’s assets to Sirit through a receivership process as announced on April 6, 2006. Accordingly, it became apparent that the realizable value of the Company’s assets would in fact not be sufficient to satisfy all of the Company’s obligations. Given the Company’s financial circumstances, including, in particular, the rate of its cash depletion, in the absence of the immediate completion of the only transaction available, SAMSys’ only other responsible alternative would have been to cease operations. Accordingly, the SAMSys board of directors determined to accept the Sirit transaction and consent to the receivership.