Now in Chapter 11 the company should be dead cheap?
The Software is open source so the only asset is the existing customers. But how could this be worth the millions of dept you would buy as well? Even $1 is way too much in my opinion.
BTW:
I am sure Inveniam tried to sell storj with no success before they decided to go chapter 11.
I’d consider buying it for $1 if the bankruptcy court grants an order that the sale is free and clear of all liens, claims, and encumbrances. Approved by creditors.
A have to admit buying the company just to fire the remaining staff… That’s an appealing idea. So yes, for $1 I would buy and do another chapter 11 the next day. 
No, not really. Maybe a reset or something.
If Stoj were debt free, on a cash flow basis, it’s worth >$850k, and <$1.2m.
2 cents,
Julio
But there is probably nobody there who wants to pay that.
Let’s put few assumptions to paint the situation:
- Based on the 12-Week Cash Flow Budget, Storj is cash flow negative
- Storj has close to 0 valuable tangible assets
- Only asset is cash inflow of some remaining customers
- Alternative is liquidation
- Nobody wants to touch Storj with a stick nor buy it
- Inveniam already tried to get rid of Storj but failed
So current creditors will lose their money anyways if they choose to liquidate the company. So company value is rather $0 I would say in terms of what is really achievable.
Why? The devs aren’t to blame for the present situation. And I believe the leadership that brought us here is all gone.
Devs made a great product. Bad leadership took care of it to put in into the ground and leave.
That’s what I suspect it’s worth. Might be $0 and nothing but a black hole.
But once I see real figures from the court, I may well show up at the auction with a serious bid. Find some partners, community peeps… tally some numbers. Register an honest blind auction bid for whatever configuration of useable ip, asset configurations, etc.
But one wouldn’t play their cards in what could amount to a blind auction, in a public forum such as this.
2 pesoes,
Julio
I am dead serious with my $1. I’ll buy it.
I’m sure you’ll receive a warm welcome from your new staff with such a valuation.
So much for a goodwill write off.
Julio
If the alternative is liquidation, maybe even that, who knows?
Chapter 11 isn’t a fire sale though. It’s a reorganization, not liquidation, and the network keeps running with Inveniam still backing them through it. The whole point of the filing is to shed legacy debt so the buyer inherits a cleaner balance sheet, which arguably makes the core asset more expensive to acquire, not cheap. And token holders are being floated equity in the reorg, so there isn’t really a bargain-bin “buy the whole thing” moment here.
“How often is Chapter 11 successful depends on preparation and legal guidance — roughly 10–15% of Chapter 11 cases result in a confirmed reorganization plan” - source
I’ll stay with jammerdan and the 85-90% statistics on this.
quoting someone on the forum: “hey, whatever the payout is, it’s still free money”. So I believe the staff should be grateful for this free money and take jammerdan’s offer.
Then, why not buying the existing customers only?
I suppose it is possible to do so, but that would mean the company itself dies.
Errrrm. Chapter 11 still can end in liquidation.
The whole point of it is that we still don’t know anything.
But there are some weird things going on:
If Inveniam backing is that great, why are they the largest creditor in the first place, why is there only a 12-weeks DIP proposed which clearly does not save the company and why did they put Storj into Chapter 11 at all? Also there are open questions regarding the proposed community buyout which went dead silent after rushed activity in the first place.
By the way, have you read the announcement?
So it sounds more like Storj is already on life support (or perhaps even on its deathbed), which could be pulled at any moment, and bids are more than welcome.