Curiouser and curiouser ...
By joe
- 1 minutes read - 144 wordsSo we all “know” the prospective fate of SGI … assets to be sold for a song to Rackable, employees let go … equity shareholders left holding effectively nothing. Whats odd is that outstanding equity shares haven’t been canceled yet. At some point, this suggests that there will be an exchange … X SGIC shares for 1 share of RACK. But thats not the curious thing. This is.
Last friday, an order was was entered which gave effective veto power to SGIC for any sale of equity over a very specific amount. Specifically
Not sure if this is normal. This does seem to suggest that SGIC holds an effective veto over sales which would compromise its ability to preserve a net operating loss. Apart from keeping it from paying income taxes, why would they want to do this? I am missing something here. Curious.