CompuServe Messages

Ron, That backlog of orders means nothing unless it's large enough that any cash generated by it would be sufficient to meet base operating expenses and leave enough left over to fill a second order. It makes no sense to lend money so they can go even deeper into debt unless there is some hope the situation can be turned around. CBU has assets, they are not worth 'zilch,' they just aren't worth as much as they owe. Just for numbers…let's say on liquidation they could get $200 million. If their secured debt is (again…just for numbers) $250 million then their creditors may figure getting 80 cents on the dollar isn't too bad. Of course, unsecured creditors (such as stock holders) [I believe that's what stock holders are considered], who may hold another couple of hundred million in debt…would be SOL. Of course, it could also be that their assets are worth $200 million and CBU has only $100 million in secured debt (plus another $200 million in unsecured debt…so on paper have a negative net worth). If that were the case…it is possible their creditors may be willing to lend more cash. Not having ANY idea of what the real story is….I can only GUESS what will happen. My guess is that they'll fold very shortly. I hope I'm wrong. Don