Isn't it as simple as Liquid Bits is the only offer on the table other than chapter 7 liquidation, where you would probably get pennies on the dollar. The lb proposal has the potential to get back a double digit percentage of your cash outlay. Seems like a reasonable risk to a terrible alternative. My bigger concern is that the longer this takes to get to conclusion the less that HF chips will be worth.
Why don't we just ask questions here so everyone can read them? I have a lot of questions but so it is not confusing I will ask them one by one. I will be upfront and tell you that I think your offer is terrible and puts the creditors at more risk than they have now for recovery.
You have provided me details of your company's capitalization, yet you expect us all to invest in it. The deal means creditors could get zero. Just from hf's sworn testimony it looks like I will get minimum 50 to 75 percent back before the IP is even sold.
First question, please detail out how you feel lb is putting 10 million in cash in this business. If you plan to take over the business and it's assets and from that 10 million will be realized you really are not providing the money, the estate is. If you really plan to put real cash in this new business then why did you file with the court, the words Up to 8 million? That means you could put zero in after the two million (in claims not necessarily the amount you need to pay) is resolved. If you are sincere, please answer this first.
We still intend to host the telephone meeting because some things are just more quickly and effectively answered in an interactive setting. That said however, we are happy to answer your questions here as well as many of these questions seem to indicate large misunderstandings about what the 363 sale terms document says/means.
The current terms call for the formation of a new company (sometimes called NewCo in the documents). We are not taking over Hashfast, or its estate or anything else; we are forming an new company and it is buying some assets from Hashfasts estate.
Once this new company (NewCo) is formed, Liquidbits/its investors will transfer $10 million to the new company in cash. This cash will then be used by NewCo to pay $2 million to the Hashfast estate for administrative/priority expenses and to satisfy executory contracts (who by law would be paid ahead of you or us anyway), and $8 million to pay to convert the chips and wafers into usable mining rigs and get them hosted (which is how the money to pay everyone back will be generated).
I think from your question you may have been thinking we were going to do something like give $10 million to the estate, then take over the estate and immediately get our money back. As you can see from the above explanation, this is simply not the case.