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Mina Mar Group Exits Chapter 11 Financing For OTC Issuers

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Mina Mar Group Exits Chapter 11 Financing For OTC Issuers

July 02
03:39 2021

West Palm Beach June 14 2021 Mina Mar Group a mergers and acquisitions firm (M&A) who amongst other things provides financing and corporate relations to OTC Markets issuers has announced an exit from Chapter 11 financing for OTC Issuers. A company spokesman said “Our intention was to breathe new life into these handicapped companies crippled with toxic financing. The idea was to create a win-win scenario for all shareholders stake holders and all concerned.  

Our understanding of Chapter 11 was as such (Source A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements. 

In theory this as aforementioned described generally works however when it comes to toxic financing their claim falls “outside of the estate” and is immune from any creditor relief. The law of relief for toxic financiers rests in a gray area. We have spoken to several different lawyers and we typically receive several different responses or opinions on this matter. The regulators (SEC) has taken notice of this abuse in the marketplace and our understanding is that new rules are being drafted and considered to stop the abuse and exploitation of the retail common shareholder. On Dec. 22, 2020, the U.S. Securities and Exchange Commission (SEC) proposed rule changes that would require the mandatory six-month holding period under Rule 144 to begin at the time of conversion or exchange of a security rather than at the time the convertible or exchangeable security was originally acquired. We have witnessed many cases the toxic creditor has clearly abused and continues to abuse the legal loopholes.


MMG spokesperson added, “We believe that the issuers (our clients) currently in Chapter 11 received very little benefit from Chapter11. Other than speculation and huge 1500% to 3,000% share price increase which translated in “theoretically” the company having to issue “less shares”.  We do remain committed to these issuers and their followers. We welcome the new SEC rules and we already have several viable merger candidates who may be willing to assume the toxic overhang with the new SEC rules soon to be implemented. With the new SEC rules we can see an orderly transformation of these companies that will return the maximum growth for its shareholders. 

Media Contact
Company Name: Mina Mar Group, Inc
Contact Person: Media Relations
Email: Send Email
Country: United States

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