GREY:LFDEF - Post by User
Post by
swissfrankson Sep 19, 2020 2:22pm
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Post# 31587240
Nothing for Existing Shareholders
Nothing for Existing ShareholdersFor all of you who bought the UR dream like I did and were burned, I'm sorry for your loss. Hopefully my recent predictions on the demise of UR and the timing give me some degree of credibility when I tell you this.
This is not going to be fixed. For those interested in following along, here is the link to the E&Y website where all of the restructuring documentation is posted:
https://documentcentre.ey.com/#/detail-engmt?eid=448
The extent of the bloodbath is surprising, even to me.
With debts around 120 million and no revenue stream that does more than cover the costs to operate the business, even the creditors are screwed. The shareholders are finished.
UR has received what I would call interim/short term debtor in possession financing. I say interim, because it is being lent by Scott Larson, the former CEO. I suspect that by the look of the documentation, he has put the money in only to be able to buy the space station cameras for a low ball bid of $10,000 each. Given that these assets aren't core to UR's business, I imagine that this is an easy decision for the court to allow these to be sold. After that, I suspect that Mr. Larson will pull his temporary financing out of the business before they have had a chance to use any of it. If you notice, UR isn't spending any of that money yet, so once again, I think that this is just an illusion that the money is actually there to help. It is just one last instance of a Larson brother plundering the UR shareholders.
One additional reason they won't be able to pull UR out of this mess is the fact that their core assets are all held overseas. As a European, I can assure you that the bankruptcy laws in Europe are set up to protect creditors (many of who are small business owners) more than the people who drove it into bankruptcy.
Good luck being able to have the people in North America direct the distribution of assets in Europe. This is a mess that is too big to sort out with the small amount of cash and time they have left.
My best advice to those who have been burned is to stay far away from any business that hires any of Larson, Larson, Chu and Osborne. Their track record speaks for itself.