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Touchstone Strategic Income ETF V.SIO


Primary Symbol: SIO

The Fund seeks a high level of current income with a focus on capital preservation. The Fund invests, under normal market conditions, at least 80 percent of its assets in income producing fixed-income securities. This is a non-fundamental investment policy that the Fund's Board can change upon 60 days prior notice to shareholders. Income producing securities generally include corporate debt securities, mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and preferred stocks. The Fund will engage in frequent and active trading as part of its principal investment strategies.


ARCA:SIO - Post by User

Comment by RabidIsBackon Mar 05, 2016 4:51pm
184 Views
Post# 24626374

RE:RE:RE:Samsung taking 3D out of 2016 TVs in US market

RE:RE:RE:Samsung taking 3D out of 2016 TVs in US marketAs it stands now, there won't be any money left and the creditors will have to make do with a loss.

The total debt in the documents filed in December amounts to $860k. That's not counting the KERP. The patents brought in about $355k. That means there's still a $500k debt remaining to be settled (or more, depending on what was kept for the KERP).

Having sold the patents, which were its main source of revenue, SIO only has 3DGO left, which we know consumes far more money than it generates, as it requires massive expenses for studio royalties, operation costs from Neulion, and marketing expenses. Their only option is to sell 3DGO - they can't keep running it to pay off the debt, because it would actually just keep generating more debt (or, more likely wouldn't be able to run because while the BIA protects SIO from their current debt, the debtors surely won't offer any further services or products until said debt is settled). 

There are a few possible scenarios here:

1- 3DGO isn't sold. SIO is therefore unable to produce a proposal this Monday, as they are penniless and therefore unable to operate 3DGO to generate further revenue. They declare themselves (or are declared) bankrupt and the creditors have to make do with whatever is left from the proceeds of the patents and equipment sales, which is roughly half of the debt. 

2- 3DGO is sold for an amount inferior to the amount of the debt when combined to the proceeds of the patents and equipment sales. SIO is therefore unable to produce a proposal this Monday, as they have no further source of income to ensure complete payment of their debt. Alternatively, hoping to use some of those proceeds to keep the company alive and look for a new source of revenue, they file a proposal, which is promptly rejected by the creditors wishing to cut their loss.   They declare themselves (or are declared) bankrupt, and the creditors have to make do with a small loss equal to the difference between the combined process of all sales and the debt. 

3- 3DGO is sold for an amount roughly equal (or slightly superior) to the amount of the debt when combined to the proceeds of the patents and equipment sales. Hoping to use some of those proceeds to keep the company alive and look for a new source of revenue, they file a proposal, which is promptly rejected by the creditors wishing to cut their loss. They are declared bankrupt, the creditors get their dues, and maybe there are some negligible scraps left for the investors in the end.

Alternatively, SIO just pays its dues and winds up. 

4- 3DGO is sold for an amount considerably superior to the amount of the debt when combined to the proceeds of the patents and equipment sales. SIO pays its dues and is now free of most of its expenses, having parted with 3DGO; they consider going into VR (as hinted by Routhier's numerous Twitter posts about VR as of late). They linger on for a while, unable to get any financing due to SIO's past track record, and eventually dissolve after a few months.                                                                                                                                                                                                   
Any scenario I might be forgetting here?

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