Depending on the bankruptcy court proceedings and the ability of TPL to survive through a CH 11 filing, there could be ways for Patriot Scientific to gain greater control, or total ownership, of the MMP. If TPL can demonstrate to The Court that it is in the best interest of creditors that they remain a going concern, with the ability to generate a significant amount of positive cash, the Plan of Reorganization might involve Notes payable over time. The Notes would likely be set at amounts that are affordable based on financial projections, and undoubtedly include some level of ‘haircut’ to be suffered by stakeholders/creditors.

If, however, The Court determines it is in the best of interest of creditors to liquidate the assets of TPL in order to maximize the return to creditors, when measuring the viability of both options, then TPL’s interest in the MMP could possibly be subject to sale. In that case, PTSC may be able to purchase TPL’s 50% ownership of the MMP. Additionally, even if that option does not present itself, and a CH11 Plan of Reorganization is granted, PTSC may be able to demonstrate to The Court that if PTSC is granted some type of a majority control over the MMP licensing, based on their potential ability to obtain greater maximization of value, i.e. higher licensing amounts, the benefits of which would also inure to TPL creditor’s, then the Court might be persuaded to look at that as an option.

Bankruptcy court proceedings are full of substantial amounts of negotiation and a lot can happen during the process. Whether PTSC can wield any leverage relative to this case is unclear, and of course I do not know the internal financial picture of the case, although generally speaking it is public information if one wishes to delve into it. I do hope our side is weighing its options with respect thereto, as there may some opportunity to enhance our position.