We have not mentioned Martin Shkreli here in a minute -- but the full accounting may be found at our other property, on the topic. Here is the latest -- as a capable USDC Judge has appointed a receiver to take possession of Martin's ~37% stake in Phoenixus AG -- and liquidate it (or at least enough of it), to pay the US government judgments, and his judgment creditors (around $17 million, by my reckoning, so far).
As irony would have it, a former (alleged) fellow-traveller in chicanery, Kevin Mulleady, is reputed to be the likely buyer of Martin's interests. We shall see. [The other connecting tangent here -- is that the guy seeking (and now, winning) the receiver order was an SVP, and effectively the Chief Science Officer, at the long gone legacy Schering-Plough pharma firm, under one "Fast" Freddie Hassan (2004 to 2010).]
Alright -- I promised more, about this filing from yesterday afternoon -- and here it is. Yes, the end game is officially... on.
I ask you: what sense does it make, to pay a 5% commission (of perhaps as much as $1.2 to $2.5 million, for a couple months' worth of work -- at the outside), to this clearly very able court-appointed receiver (a fine former US Attorney in the same District where Martin was convicted of felonies, and sentenced, BTW -- he handled the so-called "Wolf of Wall Street" / Belfort testimony)... when no matter what happens now, Martin WILL lose control? Answer: No sense, at all.
The 5% commission will be purely extra costs, in the transaction(s) -- nominally payable out of Martin's shares, simply because he won't accept... the inevitable.
The shareholders who voted about ten days ago, as a part of Martin's 70 per cent block, ought to just cut a deal, directly with Mulleady -- and do it all by a settlement agreement. That way, the other shareholders of Phoenixus AG preserve more value in the company, overall -- and likely can work out a governance arrangement with the Mulleady team, that essentially ends Martin's role... all while keeping the company as a going concern for those same shareholders.
The OTHER (forced) route -- via the cram down / Daniel R. Alonzo / receiver -- is that Mulleady gets the shares anyway, but millions of dollars are wasted, fighting this receiver process -- and the company may well be bankrupted -- before the other shareholders are able to sell THEIR own stakes.
Either way, the time of Martin running it all, from FCI Allenwood Low... is coming to a rather swift end.
The question is: why would the other shareholders waste their money -- into the millions of dollars... trying to prevent the... inevitable?
Martin's view cannot be executed, any longer, now -- so better to strike a deal and salvage what is left of the value in the company, for themselves.
Forget Martin -- he'd long ago become a burnt offering in this process (by his own unenlightened decision-making).
नमस्ते
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