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Martin Shkreli's KaloBios Files Chapter 11: Full Bankruptcy Filing
Over a month ago, when observing (from as far away as possible) the farce of Marti Shkreli's attempt to squeeze KBIO shorts in the context of the infamous Joe Campbell who was short KaloBios only to suffer a $100K margin call overnight when Martin Shkreli bought a 70% stake in the company, we wrote:
Which brings us back to Joe Campbell and his now famous margin call: did he liquidate enough other assets to cover the margin call? What about the hundreds of other shorts who piggybacked and shorted at the close yesterday only to wake up with comparable massive margin calls?
And what happens if Shkreli's plan is indeed to rerun the "Volkswagen" scenario and unleash an epic short squeeze that sends the price of the company into the stratosphere, unlinked from any fundamentals, but merely soaring ever higher as desperate shorts pay any price just to get out.
We hope to find out, as suddenly this until recently bankrupt company whose price has exploded in the past two days, has become not only a poster child for everything broken and manipulated with the market (think 2014's CYNK one year forward) but has the market following with morbid fascination to find out how the tragicomedy of "Shkreli vs the Shorters" concludes.
We now know how the story ends: less than two months after KaloBios had commenced liquidation proceedings, only to be saved in the last moment by a Martin Shkreli liquidity injection, the company is right back in bankruptcy court having just filed for Chapter 11 creditor relief in Delaware bankruptcy court. This takes place a week after it lost two more directors and the Nasdaq stock market decided to delist its shares.
In its bankruptcy filing, KBIO lists $8.4 million in assets and $1.9 milion in debt.
How did the company's truncated board decide on a Chapter 11 filing? From the filing:
Effective as of this 29th day of December, 2015, pursuant to a special telephonic meeting on the same date, the board of directors (collectively, the “Board of Directors”) of KaloBios Pharmaceuticals, Inc., a Delaware corporation (the “Corporation”), upon a motion duly made and acting pursuant to the Corporation’s organizational documents, took the following actions and adopted the following resolutions:
WHEREAS, the Board of Directors has considered information regarding the liabilities and liquidity of the Corporation, the strategic alternatives available to the Corporation, and the impact of the foregoing on the Corporation’s business; and
WHEREAS, the Board of Directors has had the opportunity to consult with the Corporation’s management and financial and legal advisors to fully consider each of the strategic alternatives available to the Corporation; and
WHEREAS, the Board of Directors has been presented with a proposed petition to be filed by the Corporation in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under the provisions of chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (as amended, the “Bankruptcy Code”); and
WHEREAS, the Board of Directors desires to approve the following resolutions
NOW, THEREFORE, BE IT RESOLVED, that in the judgment of the Board of Directors, it is desirable and in the best interests of the Corporation, the creditors of the Corporation, and other interested parties that a voluntary petition (the “Petition”) be filed in the Bankruptcy Court by the Corporation to initiate a bankruptcy case (the “Chapter 11 Case”) under the provisions of chapter 11 of the Bankruptcy Code;
Thus ends KaloBios' "turnaround in progress" - two months after it was
dragged out of bankruptcy by Martin Shkreli in an attempt to crush the company's shorts and unleash a massive squeeze, Kalobios is again, well, bankrupt.
Turnaround in progress. $KBIO pic.twitter.com/5dseMG3B8I
— Martin Shkreli (@MartinShkreli) November 23, 2015
The full filing is below:
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time to sell the wu-tang album on ebay for 15$
I bid $5!
My last $5 I used to dig an ounce of silver out of the ground. Then, the Morgue & the Fed naked shorted it with endless paper leverage. Now I'll be filing for CH7 & some bank will get my ounce for fee simple.
couldn't have happened to a nicer guy....
I would still rather get Shkereli'd than Corzined.
One could say he got schlonged.
pods
Hope Shkreli now realizes you can't act like you're the Fed unless you have the ability to create unlimited amounts of money out of thin air to keep your bubble inflated.
Lessee: Shkreli Schlonged,,,
We can only dream,,,oh, and say that three time real fast...
;-)
OBTW: If he does go to prison, there is going to be a loooong line waiting for him...he's kinda cute...and tender.
He is not all that is wrong with society, but certainly a good start. What a cancer.
Martin Shmuck-o ? Who the fack is this bloody poofter?
The only way to kill a zombie corporation is with a double tap to the cash register.
Hey Cog, that includes pretty much all of them you know.
Name me three major corporations that can be said to have integrity and respect for their customers...and no you cannot consider the bwankers as their "customers".
Hey Shkrelli. Word of advice. While in the pen, if you drop the soap in the shower......just let it go. Don't bend over.
corporations should be banned from this Earth.
get it back to normal when you have 1 human being to blame if his business fucks things up.
Isn't it funny how the whole 'Corporations are people' concept conveniently disappears when their criminal acts are exposed.
Mitt Romney- Corporations Are People!https://www.youtube.com/watch?v=E2h8ujX6T0A
Get with it.
Mitt Romney- Corporations Are People!
I though Soylent Green was People. Hell....I thought Bruce Jenner was a guy. It's all very confusing.
If corporations are people, why can't we imprison them?
Because the Prosecuters are all corporations
32 and he was already a multiple time CEO and hedge fund manager. Only qualification was being Cramer's coffee boy and head polisher. Tell me again about how smart, qualified and special our precious CEO's are to "earn" millions per year. Still waiting....
sausage polisher is more like it
gosh, he looks so very manly in the picture
US gov should follow his lead
I hope the shorts managed to stay short. That's why you have to be dumb, brave or both to shorttrade on margin.
"Only qualification was being Cramer's coffee boy and head polisher. "
Makes one think of the Wall Street Journal's, Jon Hilsenrath
Hilsenrath, William Dudley's (NY Fed's head) coffee boy and head polisher.
Oh Jon we are looking for more rumors in between head polishing.
"Corporations must win." ~ Jack Welch
r
https://enronnext101.wordpress.com/
look,the co went bk not ol martin..he is doing just fine. now the lenders might be a bit twichy..but heck at zirp, and access to discount window at the FED, they will scrape by.
Have you been watching the news over the past month?
Penny stock guys run this kind of risk if they go short. If the market cap of anything is like 5 million and it has shorts at about 60% of outstanding, it does not take a lot of brains or money to squeeze the shit out of them. Open a cash account with around 4 million and buy up the sucker, Only dumbfucks try and squeeze nickles and dimes in that sort of over populated trade.
You're all a bunch of meanies, I like the guy.
I agree. I like this guy too. Don't know where all the hate is coming from. He's just playing within the rules that others paid for.
You are probably both skinny, ethically challenged weasels who identify with this worthless turd.
And you never learned how to spot sarcasm...unless you just trapped me with your own sarcasm. If so, then I've been hoisted by my own petard!
A lady never divulges her secrets.
Oh, I do declare!
Nope, a bored slightly overweight third generation American CPA.
"I agree. I like this guy too. Don't know where all the hate is coming from. He's just playing within the rules that others paid for."
This is precisely why we hate him. Because the rules were written by the corrupt for the corrupt. Plus, he was a douchenozzle and a braggert.
So, the guy who went broke shorting the stock and asked for crowdfunding, is now rich beyond imagination and can pay everyone back?
Uh, only if he kept his shorts open.
that's what barney frank told me to do
He shorted about 8400 shares at about $2. So the most he could have made is $16k or so. However his position got blown out of water and was most likely closed by E-trade for loss of $109K. Now those that shorted at $40-45, do stand to make a lot of money?
Had this company as a client back at my old gig.
Couldn't happen to a more deserving group of people. The culture came from the top down, believe me.
This guy wins "ass hat of the year."
If anybody knows about the eventual plight of Mr. Crowdfund short, I'd be be curious to find out how it turned out for him.
Reminds me of an oldie but a goodie: "You can be dead right and still dead"
Time to join the class action and who knows - maybe some lucky participant will get the Wu Tang album https://steinmeyerlaw.com/kalobios-pharmaceuticals-inc-kbio/
This guy Shkreli represents the true state of US economy
This how all the capitalists will go bonkers