questions re: xbc bankruptcyThese questions are based on what I've read in other posts. If you have useful comments that would be appreciated
!) How unusual is it for NB to be overseaing the bankruptcy proceedings if they are the creditor that forced xbc into bankruptcy. Are they payed a ridiculous fee for performing this task? Should there not be a corporate bankruptcy company dealing with this, much like Farber does personal bankruptcy?
2) If the company has roughly 250 million in debt but has 500 million in assets then the proceeds from the sale might be 250 million. I say might since in this market I guess there will be a fire sale on some parts of the business ... but lets say they did get 250 million in proceeds. Even if the crook lawyers, bankers and accountants take 20 million of that amount there is still 230 million left over. That values xbc at around 1.50 per share. If I was given 1.50 for my shares I would walk away right now and forget this ever happened to me. I know the above is flawed, but go ahead please and point out the problem with this logic. I guess it all begins with someone on this site saying they have 500 mil in assets, which might be more like 50 mil in assets. I think that post I read added an extra 0 onto the numbers and they actually have 25 mil in debt and 50 mil in assets, which means the proceeds of the sale gets gobbled up by greedy lawyers, bankers, and accountants ... and also paying off the crooked management of this company.
3) Is the company still operating and attempting to fulfil its contracts, and provide service to its customers? I just read a post stating they will be cashflow positive by start of Dec. Do they have the cashflow to make payroll between now and then. I guess they do, and thats why they are in creditor protection. I had a feeling around July of this year that this company was like a few I've worked for in my career. They seem ok on the surface, and during the interview, but when I get there and sit down at my desk I soon realize they are badly organized, the leaders are a bunch of morons, and their product doesn't work. Most of the effort that goes into the company is to mantain that shiny surface on the outside. I really hope I'm wrong about this, but if I'm not the really strange part about this is that so many analysts and banks were also fooled. I didn't throw a dart and choose this company, it was based on a lot of factors, including overwhelming support from banks and analysts for the company management and product.
4) It looks like the way this is going to shake out is I'm going to lose all or a very large part of my xbc investment. I'm ok with losing a large %, you win some and lose some, but losing it all is something I've never had to deal with before. Its been implied from a few posts that there is a squeeze going on here, a situation where it makes sense for national bank to push xbc into bankruptcy, and in the end the bank (or their associates) may benefit well beyond just collecting their loan and interest oweing. I suppose this is why a judge is involved, to make sure there is not a hidden deal happening, but when I hear the company will be cash flow positive by Dec it seems strange they were not able to secure financing to bridge until then. I'm sure its wishful thinking on my part that the banks would or should have cut this company some slack. No one cuts anybody slack, but in this case the judge needs to identify if the company is being reorganized and new investors or management will be grabbing all of the existing shareholder equity.
I requested the link from krony so I can possibly join an organized effort to ensure current shareholders are represented in this bankruptcy. What happened to the board of directors? Are they not supposed to be representing the shareholders of the company? At this point I believe all involved are a bunch of crooks, including various posters to this board.