$BLUU Further insight into WHY they left BK. After reading the full PR, the toxic financiers fall "outside of the estate" and are immune from any creditor relief. Meaning, they have no leverage against them and the debt would not be wiped out in a BK proceeding. This is why the lenders would have to join the motion or reach a settlement. Even though the companies were defunct, the shares were still being traded and each lender is generally entitled to MASSIVE amounts of shares with face values far exceeding the debt owed to them. Essentially, a $100,000 loan might next you a $5M return after conversion and dumping your stocks. This is why the lenders won't take a simple return of their principal, they want the windfall they feel they deserve. IMO, MMG realized they were getting nowhere and didn't want to continue wasting money on legal fees to no avail. Per the PR, they intend to hold out until the new SEC rules go into effect which might change the tune of the lenders.
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