What is a self liquidating promotion
It had unpaid bills and payroll stretching back over a year, raised preferred share (superior to any common shares) capital on two separate occasions worth more than mm, and as of September 2013 was on the verge of being forced into bankruptcy by its former CFO, Catherine Voutaz.
A screenshot of this section of the letter is reproduced below: Kesselring’s plan, as outlined in the letter, was to begin liquidating its 1.1mm S3D shares, which he believed had become free trading on July 23, four months after the asset sale.
In essence, these tactics allowed the company to keep as many shares as possible out of the market, thereby making it easier to keep the shares floating at a lofty price for as long as possible.
Thanks to a series of recently filed court documents, we now know much more about the distressed V3 Systems that S3D purchased, and know that the liquidators of V3 are making every attempt to sell their S3D shares and distribute the proceeds to a long list of V3 debtors.
Given V3 had nothing else in the Company and no operations, it began a dissolution process.
William Kesselring, a consultant who had helped negotiate the sale of V3 to S3D, was appointed manager of the dissolution.