Topic: HashFast announces specs for new ASIC: 400GH/s - page 76. (Read 880461 times)

LOL it's yet another preorder that will probably never arrive!

Agreed, Im not sure how $9mm was decided for the inventory but if its true then I think we are best off to just liquidate all inventory and distribute the money.

Do you have a buyer at $9mm for the inventory and IP?

How did you come to believe that the inventory and IP is worth $9mm?

Isn't $6mm better than nothing?

[/quote]


There really isn't any justification for the creditors to finance LB for the next 2 years for less than we could recover selling everything today.
[/quote]

But who is willing to purchase the entire inventory of chips TODAY from estate?  LB appears to be the only dog in this fight as HF and LB both claim that the inventory has been shopped around to multiple buyers with no interest.  Debtor in possession financing also appears to be a no go in order for HF to build them out themselves.   Time is of the essence on this matter.

LB is also willing to waive their $5.3 million claim on the estate, so they are essentially trading their equity stake in estate for usable inventory(with additional investment).  By my calculations they are getting these chips for market value of ~ $200 chip ($5.3 million/27k chips +/-).  I agree that a 2yr. time frame for full payback is too extended, but they do make concessions for this contingency including full payment of equity units prior to LB(newco) ever taking a dividend or disbursement and having the promissory note secured against assets of the "newco".  LB can't be expected to take all the upfront risks on this proposal and since they are taking risk capital to build out these miners, they are entitled to un-guaranteed longer term gains.  Time is of the essence on this matter.

What exactly is the sticking point for the creditor's committee on this proposed sale?  it sounds like it is time duration on note/equity units? Please enlighten us...  have not seen any update on committee website either?

@Minor Miner:
I don't have any magic insight here.  Having worked for a large company, I have experienced bankruptcies of small companies and creditors seem to only get pennies on the dollars after the dust settles.  If you are right about their being a lot of assets that can get liquidated at good prices and distributed to the creditors for a significant percentage of what creditors are owed, then I agree this would be a very simple solution with little risk.  I just don't have faith that that will happen.  There is typically a big difference in the value of inventory versus what the inventory can be sold quickly for.

If they really invest $10M, and if they really can't take value out of the company before paying us, what could go wrong? How could they screw us? Wouldn't they have every interest not to?

If it was $6M today, I would agree.  But it's a promise of $6M in a couple years, and possibly nothing if something goes wrong in that time frame.

The problem is that you don't know if the assets are really worth $9M, do you? I have to prefer $6M "guaranteed" (if they spent $10M into the mine they would probably be "guaranteed") rather than 3-9M maybe.

It really doesn't matter if they are investing $10M or $100M.  The most the creditors every see is $6M, in 2 years.  In exchange we give them $9M of inventory and IP rights.

There really isn't any justification for the creditors to finance LB for the next 2 years for less than we could recover selling everything today.

Possibly the most incredible thing of my day is that LB's strategy confused myself as well. They acted like they were trying to fix the self defined confusion, but they simply used the fog machine to their own interests. Lacking to reply to the last legitimate questions they left a cloud of confusion into undecided minds like mine. Now what should you believe? The terms and lb promises of spending $10M or the terms and a probable upcoming selfish interest from lb, where they try not to spend a dollar more than what they have to?

I've emailed him, just in case he is not reading the thread. Let's see his exhaustive answer.

Had previously scheduled meetings and LB's did not answer even my simplest question here.   I guess because it is true their post here is deceptive and does not match what they filed in court.
Interesting, you have a brand new account and think it is a GREAT deal and that in liquidation we could only get "pennies on the dollar".   Why don't you share the math behind that statement.   LB refused to detail out their valuation of the the inventory, so where are you getting this BS from?
There are 29,000 chips plus A LOT MORE ASSETS.
There is likely $10,000,000 owed to creditors (many claims are likely overstated) and the $2,000,000 is already IN THE CREDITORS' CLAIMS. 
Just selling the inventory to bidders will net $7 to 9 Million.    That is 60 to 80 cents on the dollar (because lawyers etc. need to be paid).
Then every shareholder likely owes all the money they took from the company BACK to the estate.   This is substantially more than $2,000,000 which gets you to all of us being repaid fully.
This is before we sell the IP etc.

That sounds a LOT better, than maybe, perhaps, possibly getting somewhere between 0 cents and 100 cents from a company that is unknown to you and still lists their primary place of business as a residential condo worth $275,000 in a building that does not allow you to run a business out of it.

Tell that to all the people currently invested in ASICMiner's 3rd generation!

I missed the call, but I think that the questions left unanswered above still deserve some written reply.
Also, historically, selling hardware has been more profitable than mining with it. So why isn't LB proposal build hardware to resell it and host it in the unsold part?

Listening on the call happening now.  Amazed that only one person is asking questions.

“July 22 at 10AM PST/1PM EST, so that you can ask any questions or register any complaints directly with the Chief Executive Officer and Chief Strategy Officer of Liquidbits.
(Conference #: (712) 432-1500, Participant Access Code: 700281#).”

I am pretty sure that "no money" means that they can't build boards.

if they have so many chips and no money ill settle for 5 boards w/ chips, ill supply my own psu and water cooler. I am owed one babyjet but will settle for 5 boards.

Isn't it as simple as Liquid Bits is the only offer on the table other than chapter 7 liquidation, where you would probably get pennies on the dollar.  The lb proposal has the potential to get back a double digit percentage of your cash outlay.  Seems like a reasonable risk to a terrible alternative.  My bigger concern is that the longer this takes to get to conclusion the less that HF chips will be worth.

I want the microwave from the employee break room. I should file an emergency motion for it.  10 bucks with 100 bucks credit to the estate in 90 days.

What have you guys smoked? I mean, its a bankruptcy, right? Maybe Wikipedia could help?

Everything should go out to the highest bidder. Everybody thought the Fed auctioned btc was going to be under market value. Lb can bid on it just like everybody else. Everything from desks, chairs and the damn chips to the shades on the windows. I want every penny on principle now.