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JG

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Reply with quote  #1 
I have managed to get my hands on a copy of the audio of the creditors' meeting.

You can download it from http://about.ag/pics/bk/bd/BDI.mp3 .

I am going to be going through the audio, and posting much of what was said (along with time references), as I figure most people won't have time to go through nearly 4 hours of audio. I will also post some comments if I find interesting items in there.

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ChevyRacer

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Reply with quote  #2 
Hell, just the first 10 minutes alone are worth it!
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DAVLostHisMoney

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Reply with quote  #3 
Where was McAlister during the hearing?
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JG

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Reply with quote  #4 
Quote:
Originally Posted by DAVLostHisMoney
Where was McAlister during the hearing?


Probably in Alabama. Unfortunately, while bankruptcy code requires the debtor to be at the creditors' meeting (to give the creditor a chance to confront the debtor, although in a controlled setting), since Charles McAllister resigned and Dan Bensimon took over, it was Mr. Bensimon who needed to be there.

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DAVLostHisMoney

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Reply with quote  #5 
How did McAlister talk Bensimon into taking over this mess? He even fooled a guy used to taking over messy businesses to take BDI!
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bdhasmysilver

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Reply with quote  #6 
Bensimon was offered a share of the carcass.  Once it's consumed, he and Martinec will move on.
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DAVLostHisMoney

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Reply with quote  #7 
But Bensimon takes on the liability. So,he essentially ends up owing the creditors. He should come away with nothing. The real issue is the criminal activity of the Ponzi scheme run by McAlister.
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JG

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Reply with quote  #8 
Quote:
Originally Posted by DAVLostHisMoney
How did McAlister talk Bensimon into taking over this mess? He even fooled a guy used to taking over messy businesses to take BDI!


For $300/hr to you and $200/hr to your long-time business partner (from Bullion Direct), plus $150K if a liquidation or reorganization plan occurs by February 20, plus $3,500 for you from Nucleo and $2,500 a month for your partner, plus 4-5% of Nucleo's licensing fees, it is a no-brainer.

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harley_52

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Reply with quote  #9 


For $300/hr to you and $200/hr to your long-time business partner (from Bullion Direct), plus $150K if a liquidation or reorganization plan occurs by February 20, plus $3,500 for you from Nucleo and $2,500 a month for your partner, plus 4-5% of Nucleo's licensing fees, it is a no-brainer.



I'ts a game.  Legalized theft.  They are the winners; we are the losers.  In my opinion....

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tboll

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Reply with quote  #10 
Quote:
Originally Posted by JG
Quote:
Originally Posted by DAVLostHisMoney
How did McAlister talk Bensimon into taking over this mess? He even fooled a guy used to taking over messy businesses to take BDI!


For $300/hr to you and $200/hr to your long-time business partner (from Bullion Direct), plus $150K if a liquidation or reorganization plan occurs by February 20, plus $3,500 for you from Nucleo and $2,500 a month for your partner, plus 4-5% of Nucleo's licensing fees, it is a no-brainer.



Will the court approve all these expenses even if so doing would drain the company's assets and result in creditors getting less than they would have gotten had BD liquidated under Chapter 7?  Or will Bensimon's pay be contingent on assets and/or income that  he brings in beyond what BD had on July 20th?  I thought I heard somewhere that Bensimon was not going to sell vault content in order to pay himself (although the cash accounts were fair game).

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JG

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Reply with quote  #11 
Quote:
Originally Posted by tboll
Will the court approve all these expenses even if so doing would drain the company's assets and result in creditors getting less than they would have gotten had BD liquidated under Chapter 7?  Or will Bensimon's pay be contingent on assets and/or income that  he brings in beyond what BD had on July 20th?  I thought I heard somewhere that Bensimon was not going to sell vault content in order to pay himself (although the cash accounts were fair game).


My understanding is that the court typically does approve expenses. I believe that a Chapter 11 normally would not be approved if was expected to generate less money than a Chapter 7 liquidation, but I do not believe there would be an issue in paying (reasonable) expenses in Chapter if somehow less money ended up being created than a Chapter 7 liquidation would result in.

I'm not sure about Bensimon's pay -- I know that trustees (which he is not) get paid a maximum based on how much is distributed to creditors (so if creditors get nothing, the trustee gets nothing). But I'm not sure if there is something similar with a CEO/CRO like Bensimon. There are also fees that do get paid regardless of whether distributions are made (e.g. attorneys fees and other professional fees).

I believe the issue with the metal in the IDS vault is that it is likely the legal property of customers (not Bullion Direct), which is untouchable in a bankruptcy. But, somebody has to pay the expenses of selling that metal and getting the money to creditors.


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bull123

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Reply with quote  #12 
with all respect and love ... some on this site act like CM is Steve Jobs

Dan B. is Warren Buffet

the attorney is F Lee Baily ...

If it had just gone into Chapter 7, at least there would have been small checks going out to everyone ... Doing it this way could clean the bones of every last hint of meat.

and doing it this way is all based on some computer program written by a guy who was allegedly "worried" way back in 2007 when he suddenly found out that if you wait for checks to clear and Gold is going up in price, you are going to find your a** upside down in every deal.

what a genius he was ...

just sayin ... my opinions ... peace and love

i know we are all frustrated
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JG

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Reply with quote  #13 
Quote:
Originally Posted by bull123
If it had just gone into Chapter 7, at least there would have been small checks going out to everyone ... Doing it this way could clean the bones of every last hint of meat.


Assuming that the $650K of metal cannot go to expenses, as it stands you should get about what you would in Chapter 7 (but with potential upside). Tulving is in Chapter 7, and the expenses are similar to what we are seeing here.

People will certainly disagree over whether a relatively small cash flow from some odd licensing thing should just go to creditors, or towards improving the Nucleo platform, and whether creditors should be paid cash or get equity. But in Chapter 7 I doubt you can license Nucleo, you would have to sell it outright -- which likely would bring in a lot less than it might be able to if it was spruced up and licensed out first. But again, that's another one different creditors will disagree with.

Remember, too, very few creditors are checking to see what options they have (such as forcing a Chapter 7 liquidation). I think they vast majority of creditors are just seeing what happens without trying to help steer the ship (aside from posts here, but those won't do much unless perhaps there is a brilliant idea or something very useful nobody thought of yet, that then gets to the right people).

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bull123

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Reply with quote  #14 
i agree with every word you say

but i'm going to bet with my last dollar, that the nucleo software will end up being worth ZERO ... nothing ... 0

you couldn't give it away

just my opinion=)
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