In a recent post on LinkedIn, Tom Allinder discussed “Why an Alternative to Litigation is better for Lenders and Funders.” Allinder says the primary reason a funder should choose restructuring over litigation is because, through a restructure, funders have a much greater chance of receiving a return of capital (and a profit). For direct microcap investors, Allinder says restructures are
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Guest Post By: Tom Allinder I was speaking to a funder of microcap companies last week. He was describing how the microcap market is continuing to fall apart. I asked him what the problem was… “Convertible debt and the funding instruments the companies are using,” he replied. “We are seeing this across the board now. When a company starts filing
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Guest Post By: Mark R. Basile, Esq. By the time small cap OTC/PINK SHEET Company CEO’s realize they can’t raise any more money, many try fighting an uphill battle, or simply close the doors. The ones most hurt by this are the shareholders. Toxic Convertible Debt, unless it’s managed correctly, could be the death knell of a company and it doesn’t matter
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