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Author Topic: [GLBSE] BDK -- LIQUIDATING UNDER NEGATIVE EQUITY PROVISION --  (Read 18615 times)
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June 30, 2012, 08:56:14 AM
 #161

I will also state that BDK will be reverting direction. While there was an effort I announced two or three months ago to shift BDK's direction from primarily being a lender to dabbling heavy in securities -- this will no longer be the case.

All coins in securities will be slowly extracted and placed in BDK coffers to buy back current debt and "refinance" at lower rates, and to go toward making loans, both to individuals, and with BDK-BLoC - businesses. Businesses will be the primary focus within a few months, and efforts will be made, once BDK-BLoC launches, to keep an adequate reserve to fund all reasonable loan requests. BDK will be re-opening the doors for bonds and CDs once BDK-BLoC launches publicly.


Cheers!
-Ben

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July 01, 2012, 05:56:01 AM
 #162

June Summary

Monthly Net Profit - ฿79.35
Income - ฿405.30
  • Loan interest - ฿56.98
  • Gratuities - ฿0
  • Securities dividends - ฿257.82
  • Securities sold at a gain - ฿86.41
  • Misc - ฿4.1
Outgo - ฿325.96
  • CD/BDK.BND dividends - ฿310.37
  • Misc - ฿0
  • Securities sold at a loss - ฿15.59

Other Info
Assets - ฿10,572.06 ($70,832.80)
  • Loans (excl. default)   - ฿1,606.63
  • Securities - ฿8,748.19
  • Cash-on-Hand - ฿105
Liabilities - ฿5,218.36 ($34,962.99)
  • BTC100 Pledge   - ฿10.85
  • IBB Pledge - ฿1.24
  • BTC Deposits - ฿3,783.2
  • USD Deposits - ฿311.94
  • Shareholder Div. - ฿1.84
  • BDK.BND - ฿1,087.30
  • Operator Pay Reserved in BDK - ฿22
Equity - ฿5,353.7 ($35,5869.81)
Operator Monthly Performance Pay (40% of net profits after shareholder dividends) - ฿25.544
Operator Monthly Performance Pay After Modifiers (Performance pay - IBB&BTC100 donations - Personal Expenditure) - ฿22
BDK Growth for Month of March (profit - shareholder dividends - operator performance pay) - ฿40.31

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July 01, 2012, 05:58:01 AM
 #163

{ADJ info is now correct, I believe. Formula is (((%ChangeInBTCExchangeRate+1)*EoQEquity)+(Net Profits * EoQBTCexchangerate)) -- tell me if that's incorrect, please.}


2012 Q2 Report (April-June)

Quarterly Net Profit (BTC, non-adj) - ฿1,113.54
     Quarterly Net Income (BTC, non-adj) - ฿1706.55
     Quarterly Net Outgo (BTC, non-adj) - ฿593.02
Quarterly Net Profit (USD, with equity adjusted for exchange rate change over quarter) - $14,776.16


Quarterly %RoE (in BTC, non-adj) - 23.77%
Quarterly %RoE (in USD, adjusted for exchange rate change over quarter) - 60.23%

     April %RoE (non-adj) - 4.6%
     April Net Profits (non-adj) - ฿155.54

     May %RoE (non-adj) - 17.7%
     May Net Profits (non-adj) - ฿878.65

     June %RoE (non-adj) - 1.48%
     May Net Profits (non-adj) - ฿79.35

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July 01, 2012, 06:00:03 AM
 #164

2012 SA1 Report (January-June)

Semi-Annual Net Profit (BTC, non-adj) - ฿1,190.88
     Semi-Annual Net Income (BTC, non-adj) - ฿1799.49
     Semi-Annual Net Outgo (BTC, non-adj) - ฿608.59
Semi-Annual Net Profit (USD, with equity adjusted for exchange rate change over last two quarters) - $17,786.63


Semi-Annual %RoE (in BTC, non-adj) - 26.96%
Semi-Annual %RoE (in USD, adjusted for exchange rate change over last two quarters) - 67.89%

     Q1 %RoE (BTC, non-adj) - 3.19%
     Q1 Net Profits (BTC, non-adj) - ฿77.34

     Q2 %RoE (BTC, non-adj) - 23.77%
     Q2 Net Profits (BTC, non-adj) - ฿1,113.54




(fwiw, these numbers are not perfect representations of the truth. Equity amount changes over the quarter, and I use the "last" equity amount to adjust USD profits when determining USD gains. The adjusted calculations assume I had exactly the same amount of equity in January as April. It also assumes I bought or accumulated BTC at the last quarter's end (at the previous quarter's "EoQ BTC price"), which isn't true as I was rapidly acquiring BTC for BDK when it was entirely "my own" - from Q1 beginning to early Q2. So... adjusted profit numbers [this is a guess out of my ass] are probably artificially inflated by something like 10-30%.)

Additional information can be found on the spreadsheet @ https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&output=html

ETA: Made a change to the September 4th contract to make my pay explicitly clear.

ETA2: Just to be clear -- The adjusted net profit # in USD is NOT realized. It's on-paper only, and not really a meaningful figure for anyone but myself in keeping track of how much my original investment is worth.

ETA3: No, I haven't started work on transferring everything to Excel, yet, and still have some work to do on BDK-BLoC mockup, formulas, and other stuff necessary for the dev to complete work. I should have Excel book completed within 20 days. I'd really like to make it nice and collect some information automatically instead of requiring I change a certain values around every day or so.

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July 01, 2012, 07:25:31 AM
 #165

Do I need to read all of that? Damn it's long and I'm not interested to do anything more today (because it's the end of the weekend and burbon is not stopping me checking speelling) - is there a short version?
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July 01, 2012, 07:59:35 AM
 #166

Do I need to read all of that? Damn it's long and I'm not interested to do anything more today (because it's the end of the weekend and burbon is not stopping me checking speelling) - is there a short version?
Heh. Sorry.

TL;DR - https://bitcointalk.org/index.php?topic=77343.msg999596#msg999596 read new contract only, make sure it seems reasonable to you. https://bitcointalk.org/index.php?topic=77343.msg1001183#msg1001183 read only for summary of operations in June.

Summary of important changes in contract - BDK is being renamed IOU. Dividends will be paid monthly (first day of month) instead of weekly. Most other changes were either removing largely-irrelevant wastes of words, making things more clear, or cleaning up for post-August when buyback price changes.

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July 01, 2012, 11:10:12 AM
 #167

BDK-BLoC is expected to launch publicly some time in mid to late August (+-1month). BDK-BLoC will be issuing credit ratings for free within a few days so I can tweak my formulas more. There is a fine balance between being acknowledging that Bitcoin-centric businesses will be too new for a great score, and exposing myself to unjustified risk because too few businesses have a high-enough credit rating to take out a loan in an amount which could significantly impact a startup. Those who submit their financials during this free trial period will be welcomed to participate in BDK-BLoC closed beta. I expect closed beta to start some time late this month, possibly early next month.


BDK unit-holders who currently hold 1k or more BDK units: I am accepting applications for seats on the "Board." You will have no voting powers, but I'll listen to what you say very carefully and you'll be placed in a Skype room with me and the other Members. There is currently a limit of three Members. Unit-holders with a background in finance or web development are strongly preferred. You should have ideas to bring to the table to help BDK operate more effectively, both in increasing revenues and minimizing expenses, and communicating with investors. You'll need to use Skype and confirm your holdings with me by transferring shares to me on GLBSE, which I'll then transfer back (GLBSE currently does not allow Issuers to see who holds their security).

All BDK unit-holders are invited to sign up for the new mailing list which will regularly publish on the second and fourth Monday of each month if they wish to receive notification outside of this forum. It will include the critical stuff I post in this thread (monthly reports, what was going on when there was GLBSE drama, contract changes, BDK-BLoC being ready to be launched, etc), without some of the less-important stuff (weekly reports, ramblings about satellite funds, "biannual vs semiannual," etc). You can sign up @ http://eepurl.com/nfxz1 -- I may not send any of these out for a month or two.


Cheers!

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July 02, 2012, 08:25:37 PM
 #168

July 2 UPDATE
Dividend/share paid: 0.000106688BTC/share
Total dividend paid: .96BTC
Running total dividends paid in July: .96BTC

July 2012 Net Income Expectations
Optimistic estimate: 150BTC
Reasonable estimate: 25BTC
Pessimistic estimate: -150BTC
(Guesstimated weekly dividend payouts -- July 2nd: 0.0BTC/share Actual: 0.000106688BTC/share, July 9th - 0BTC/share, July 16th - .00045BTC/share, July 23rd - .000135BTC/share, July 30th - .000225/share)

ETA: On "official" break from 7/5 to 7/6. Will be back on 7/7. ETA2: Back. Smiley

ETA3: Posted Guesstimates. Keep in mind I need to count a 100BTC or so loss from a default last month.

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July 08, 2012, 11:36:09 AM
 #169

Spreadsheets updated (still needs work), profit guesstimates made, responded to PMs/emails (if I missed you - sorry - please re-send).

May be going to San Francisco mid-September for a week or two on BDK-related business. Details in due time.

If you have a deposit with me, you may wish to check the deposit sheet on the public spreadsheet to be sure I have you in there. I'm pretty sure everyone's in there, but better safe than sorry.


Apologies for being slow and a bit scattered in the past week. We accepted an offer on our house in Erie, are making an offer on a house, and was thinking/working on the reason for going to SF. It's likely I will be fairly busy until some time in October, but BDK/IOU operations will continue normally -- profits should not be affected. One place I always keep up on is the Skype lending room to see what opportunities are out there. When we move, I'll give myself business hours so I can give my full focus toward lending operations for at least a couple hours per day while everything else's going on. IOU-BLoC development is continuing, though has been paused the past couple days, waiting on me to review some options.

Cheers!

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July 09, 2012, 03:09:32 PM
 #170

July 16 UPDATE
Dividend/share paid: 0BTC/share
Total dividend paid: 0BTC (-2.48BTC, but I will eat this as I've done in the past)
Running total dividends paid in July: .96BTC

July 2012 Net Income Expectations
Optimistic estimate: 150BTC
Reasonable estimate: 25BTC
Pessimistic estimate: -150BTC
(Guesstimated weekly dividend payouts -- July 2nd: 0.0BTC/share Actual: 0.000106688BTC/share, July 9th - 0BTC/shareActual: 0BTC/share, July 16th - .00045BTC/share, July 23rd - .000135BTC/share, July 30th - .000225/share)

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July 12, 2012, 04:19:35 AM
 #171

BDK survived its first major liquidity crunch without any major failures. For about two weeks, I had liabilities I needed to pay, but no liquid assets, which resulted in me scrambling around to get enough coins in my wallet to repay depositors. There was one CD it took me two extra days to pay out because I failed to ask about whether it'd be renewed or cashed out before the CD actually matured. Outside of that (which I compensated for generously), there was no negative impact on depositors.

I have sold my entire holding of YABMC both on the open market and privately, >16k bonds. This came with a major loss of >1kBTC over what I paid (ignoring dividends, which were ~335BTC for the duration of time I was holding them), but it was absolutely essential to BDK's survival. With >2.5kBTC of new funds, I repaid 900BTC worth of intra-lender loans I took out, paid off a $2045 USD deposit early, increased the amount I have lent out, with 1.5kBTC being held in cold storage looking for lendees, and a few hundred held as cash.

Losses in July now exceed 1kBTC. I think it is a fair compromise to not have shareholders eat their entire "liability" of that (that is, having "negative dividends" rolled over until positive again, as is how it's to work in the contract), but to have dividends suspended for a time while I recoup losses. With that in mind, I will not be paying dividends until after August 6th, at which time, shareholders will get a clean slate, with all negative dividend liability written off. Put in another way, dividends will be paid as I'm contractually obligated to (which is almost certainly nothing, but I guess it's remotely possible I could somehow profit >1kBTC in a month) until August 6th, when I will wipe any remaining "negative dividend rollover" from my spreadsheets. Then, assuming I'm profitable between August 6th and August 13th, dividends will be paid on August 13th.

If you read that and were confused by my phrasing, please ask questions, privately or publicly, and I will try to re-phrase until I'm coherent. It may help to take a look at https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&gid=20 in the "Shareholder Div" cells in the "Liabilities" section on the right of the screen (F7 & G7 on my sheet).

Cheers,
Ben


ETA:
Last Valuation on 6/13 -- today is 7/12

GLBSE Securities Re-valuation (reconciliation between BDK sheets & GLBSE 5dayavg):
BitcoinTorrentz: BDK - .74BTC/share, GLBSE - .553BTC/share -- total loss of .748BTC on paper
REBATE: BDK - .172BTC/share, GLBSE - .123BTC/share -- total loss of 30.527BTC on paper
BitVPS -- BDK - 0.003125BTC/share, GLBSE - .004 -- total gain of 24.20075BTC on paper
27658

Total securities FMV change since last valuation -- loss of 7.07425BTC.


ETA2:
Consolidated monthly report in PDF format coming at end of the month. I will not be making weekly reports unless "Shareholder Dividend" becomes positive.

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July 29, 2012, 09:19:50 AM
 #172

Dividend calculations will be resumed on August 6th, as scheduled. I'll be making a gratuity dividend payment within a couple days in an amount that gets my wallet to a round number as an apology for the "BDK" asset being locked, and for only now realizing I never provided a single update in this particular thread. If you are unaware of the happenings in the past week, please see the "BDK" thread in my signature.

July report will be released on the 1st or 2nd of August.

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August 01, 2012, 02:42:11 AM
 #173

Special dividend of 2.94771552BTC paid as a gratuity for the asset being frozen a few days, and the lack of dividends, lately.

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August 01, 2012, 08:39:22 AM
 #174

    What a complete clusterfuck of a month. I finished adding up losses from GLBSE. I was avoiding adding in losses from securities dumped on the BTC account which amounted to roughly 160BTC extra I did not previously include (though, fwiw, it's a bit of a guess as to the FMV, and how much value the securities lost due to a sudden dump on the market). In total the hack cost ~709BTC in damages between actual BTC withdrawn, the cost to forcibly buyback dumped BDK-related bonds, and the securities dumped way below FMV in the BTC account. More of a hit, losses from selling YABMC bonds during a major price crush resulted in losses of ~1235BTC. Additionally, 100BTC worth of loans were written off. In total, monthly G/L was -฿ 1,549.58. All things considered, TBH, that's not too bad, though it should be noted that relief funds sent from other lenders and associates totaled a whopping 245BTC, for which I am extremely grateful. Note that while IBB & BTC100 donation amounts do not look correct because they're negative - they are, in fact, correct, and BDK did "profit" off these charities due to massive losses this month, where the negative balance will rollover until positive, at which point I'll begin paying monthly, again (BTC100 being an exception, where I pay as new charities demand it).

    An extraordinary gratuity dividend was paid to bondholders on 7/31 in the amount of 0.00035184BTC/bond.

    IMPORTANT: Because of exceptional losses in addition to the YABMC loss, I have decided to extend the dividend blackout until August 27th, at which point, bondholders' dividend will start from 0, instead of being fully liable for losses (in the form of losses rolling over and dividends never being paid until the rolling balance becomes positive). Due to extreme circumstances, I will be permitting BDK-holders to exchange their BDK bonds for BDK.BND bonds in a 1-for-1 swap from now through the end of 8/8/12. BDK.BND has the advantage of paying 1% per week, guaranteed, and is not at nearly as much danger of price swings, though this comes with obvious disadvantages, too. The contract's a Hell of a lot simpler, too. Smiley I strongly encourage BDK-holders to swap for BDK.BND units. Keep in mind this is completely voluntary -- nothing about this offering is changing less the contract change going into effect on September 4th which I've already talked about at great length. You can read more about BDK.BND by clicking the link in my sig.

July 2012 Summary

Monthly Profit - --฿1,549.58
Income - ฿671.133
  • Loan interest - ฿218.45
  • Gratuities - ฿0
  • Securities Dividends - ฿117.69
  • Equities sold at a gain - ฿0
  • Misc - ฿90
  • Hack Relief Fund Cheesy - ฿245.00
Outgo - ฿2,220.72
  • CD/BDK.BND dividends - ฿168.42
  • Loan Write-Offs - ฿100.00
  • Misc - ฿8.00
  • Securities Sold At Loss - ฿1,235.33
  • Losses From Hack - ฿708.97

Other Info
Assets - ฿ 7,800.00 ($73,944.04) (yes, it literally was 7.8kBTC exactly)
  • Loans (excl. default)   - ฿2,959.98
  • Loans in Default (100BTC of this has been written off) - ฿ 172.50
  • Securities - ฿4,418.83
  • Cash-on-Hand - ฿120.00
  • Reserved USD - ฿128.69
Liabilities - ฿3,880.888 ($36,790.79)
  • BTC100 Pledge - ฿1.65
  • IBB Pledge - -฿7.96
  • BTC Deposits - ฿2,966.90
  • USD Deposits - ฿0
  • Shareholder Div. - -฿ 123.68
  • BDK.BND - ฿ 1,111.70
  • Op Performance Pay - -฿ 73.12(Consider this a loan from BDK to me. It will be repaid out of future Op Pay.)
Equity - ฿3,919.12 ($37,153.25)
Operator Personal Expenditure - ฿95.12
Shareholder Dividends - ฿3.86
BDK Growth for Month of March (profit - shareholder dividends - operator personal expenditure) - -฿1,648.56

Quick note -- numbers may not add up this month. A few calculations were fucked up by negative numbers, and I'm not sure I've totally corrected them.

ETA: Noticed a flaw. I sold more BDK.BND this month which I didn't account for, all the proceeds of which unfortunately went to the attacker. This has been corrected in my sheets and this post. The I/O report for the month has now been "finalized" and August is up.[/list]

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August 02, 2012, 10:23:14 AM
 #175

Mining has quietly changed over to BitMinter. One of the Icarus boards have been refusing to work with CGMiner for nearly two weeks for reason I still don't understand. Surprised by how "Plug & Play" BitMinter is, though I was very skeptical about running a Java miner... web stats are updated "live" and the GUI's pretty slick when enabled.


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August 05, 2012, 11:31:50 AM
 #176

I/O report now has the feature nobody's requested! Charts showing data already readable with a quick glance at the relevant section! I'm not sure what's going on with the Q2 graph -- it was giving me troubles earlier. I wanted to show quarter-over-quarter earnings, but the labels were messed up no matter what I tried. I settled on just showing two quarters' earnings consecutively on a graph, but when I look at the "public" version of the spreadsheet, it shows "Access Denied." Maybe it's drawing on information in one of the hidden sheets.

Enjoy.


ETA: I've also noticed the values I enter occasionally change and revert. Comments are sometimes lost without explanation. I assume this is because I'm logged into the spreadsheet on the same account using multiple computers. I don't really see a way to resolve this while using Google Docs except to make effort to be logged in only from one computer at a time.


Relevant information: As I stated in the BDK "public" thread (it should have been posted here, not there), BDK is now taking on Pirate exposure. Exposure will be permanently capped at ~1430BTC (1428BTC + some fraction of a BTC, for a clean 100BTC/wk). Current exposure is 1kBTC -- I intend to deposit the additional ~430BTC within a week. I have entered an agreement where IOU receives 7% weekly on this balance, with interest sent back each week.

IOUcoin progress is coming along. It should be ready in roughly one month. I sent a PM to the owner/op of BitMit asking him to utilize BitMit to permit charities to really utilize Bitcoin instead of just buying USD with it. Waiting to hear back from him. It could be kind-of implemented on IOUcoin the way I envision it, but it would be quite ugly, I think. Smiley

CD and lending rates continue to decline, and I have lowered rates accordingly, in hopes of finding new lendees. I wonder if the OP for the "public" BDK thread is too "harsh." Critiques? If I did not have contacts with some of the more prominent producers in the community, there'd basically be 1800BTC invested, and 6kBTC just lying around or all in a Pirate account, so we have that going for us. Smiley Finding new lendees I'm comfortable loaning coins to has become quite difficult.

As stated previously, the "dividend blackout" will end on August 27th. All shareholder "debt" will be wiped out at that time, and dividends will resume as they should have if July wasn't an exceptionally junk-y month. The 1:1 swap offer for BDK.BND is open for a few more days. I should note I have been buying back a few hundred BDK shares here and there on the market as I see beneficial. I don't count them as G/L since I failed to correctly input them as a liability when I was initially confused over how to classify the offering. Of course, this also means BDK equity is over-reported by some TBD amount. I would enjoy having BDK recalled entirely within a few months as I dislike the risk it exposes investors to (a month and a half of no dividends, and shaky dividends in June, is embarrassing, frankly), and don't believe I'll be able to raise the volume of capital with it I initially hoped for.

Any questions, comments, disclosure requests - whatever - I'd be happy to reply. If you have a question about a specific program, however, it may already be talked about in length if you click one of the relevant links in my sig. Cheers,
Ben

Oh. ETA: I've put off the trip to SFO for a while. Idunno how long, or if I'll ever end up going. Personal/business reasons I'm not particularly interested in disclosing. When I talk about it, it leads to me smoking a pack of cigarettes in a single day. :x

Another quick addition: I don't believe I ever talked about Ghetto P&P Exchange here. Basically, I've begun providing a pen and paper ("P&P") fixed exchange service for "significant" depositors, more-or-less at cost. I both buy and sell -- users do not bet against each other, and there is no order book. Users can buy or sell Bitcoins instantly through supported CUs and banks, or through one of the slower methods. I'm also willing to do in-person transfers. This is not much of a for-profit service, and only two people have taken me up on the offer, but I hope it will go toward encouraging trust and familiarity with me among customers, as well as help ease the pain of lowering deposit/loan rates.

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August 28, 2012, 11:34:30 PM
 #177

BDK bondholders (not to be confused with BDK.BND bondholders) have had their "debt" incurred from operational losses wiped. It'll appear correctly on the public sheets as soon as I get to a computer where I can easily edit them on (2 days, likely). Need to make a lot of formula adjustments and in-sheet comments since it's a mid-month change.

This was originally posted in the wrong thread. Reposting here because it's extremely relevant.

Maybe you should buy back BDK before you go offline, and further erode the value of those shares. They pay virtually nothing at this point due to massive losses, and now, with you not really participating for 2-3 months, they're going to show no value increase for that time? Remember, dividends are practically non-existent on BDK, so we're looking for (positive) growth. This hasn't been happening. We're trading .08BTC below your last offering price. That's just over 50% of the last offering price!!! anyone who bought in at .18 has lost their ass. You taking time offline suggests that negative growth will continue.

Been holding onto this hoping to see some value from it, and it's apparently not going to happen. I've very disappointed in the performance of BDK (and your apparent lack of concern about this)
I'll admit I don't like the "BDK" offering at all. I have bought some shares back on the open market (not in the past couple weeks -- I'll revisit that since I haven't looked at that security in a while), but am not willing to do a forced buyback with the contract price.

I've lost something like 2kBTC in the past 2-3 months(another 3.xk if JRO has no assets or imminent income, and another 1k with Pirate). BDK is actually in serious danger of insolvency with the likely loss on the JRO debt. It's very possible BDK will be liquidated. In this case, I will effectively close BDK since I'd be operating with negative equity, which is contractually unacceptable. At that point, I'd personally inject enough funds into the company just enough to pay everyone what's owed. It's very likely I'd then re-launch "BDK" as "IOU" at that point.

So, assuming there's no hope with JRO (it is looking bleak) and Pirate (also looking grim), I need to force non-renewals on all my loans, let them all expire, liquidate BDK and pay out remaining bond-holders the contractual liquidation amount, close all deposit accounts, and inject personal funds to make that all happen so when I fully "close," there are no debts. The alternative is to liquidate BDK and then start "IOU" as a separate entity. IOU would buy BDK's liabilities for whatever funds are necessary for zeroed equity. BDK.BND would transform into IOU.BND, but I would not carry over BDK, since that's a shared-risk venture (unlike BDK.BND, which will pay out no matter what I do with BDK), and will fail if JRO doesn't repay. I have stuff going on with that... if it turns out I'm unable to collect enough to keep positive equity, then BDK will liquidate. If I do collect enough, then BDK will continue to exist as normal.

I've talked about this with a couple shareholders on Skype who make up "the Board," but I haven't been sure how to handle it publicly, since it'd seem like I'm trying to push down the price of BDK to buy back far below the price were I to go for a forced buyback option, which is true, but I'm also uninterested in paying bond-holders the marginal liquidation value. Idunno, lots of waiting to be done. I can't say anything "will" happen because I have so little control over both the giant potential losses. I should have time in a couple days to run through all the numbers and see where different situations would leave us.

Don't mix your coins someone said isn't legal
xkrikl
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August 29, 2012, 08:43:02 AM
 #178

Man, this is really bad news.

The investment in pirate recently was a bad move as I personaly did the oposite. I invested in BDK as you said you are clear from Pirate.
Ok, you did that decision when the shares were trading lower ... so I waited ... and now see that I've made a mistake.
But maybe you can get at least part of that debt.

Regarding JRO, I don't know much. Last I read was that it should be solved and that part of that money was blocked on MtGox account.
So I hope that you'll do EVERYTHING to get this money back.

Regarding your idea of closing down BDK and opening up IOU as a new entity - forget about it.
I know that you have in the contract that clause about negative equity but those outstanding debts are still debts ... and volountarily settling them down to get into negative equity ... that would ruine your credibility.

We've invested and we new that there are risks. You made some bad decisions and were treated badly in some good ones. That's bad luck.
But you have to fight till the end and work the way out of this. You shouldn't announce things like that you give up and want to get it settled in a cheap way while planning a new IPO ... this would effectively break your contract where you promised that you'll never sell more shares lower.

We've put our trust in you so stand up to it.
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August 29, 2012, 12:41:46 PM
 #179

The fact that you lost 1k in Pirate isn't relevant here.  I invested in BDK, and you said you had no pirate exposure.

Anyway, I for one would like to invoke the "Change of Contract" clause to sell you my shares for 0.125 BTC each. 

"When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public."

Today is the 60th day since your announced change. 

Thanks.
Kluge
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August 29, 2012, 04:31:10 PM
 #180

The fact that you lost 1k in Pirate isn't relevant here.  I invested in BDK, and you said you had no pirate exposure.

Anyway, I for one would like to invoke the "Change of Contract" clause to sell you my shares for 0.125 BTC each. 

"When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public."

Today is the 60th day since your announced change. 

Thanks.
I did say I had no Pirate exposure when I did not, but I was pretty blunt abut having put 1k in Pirate a few weeks ago, which is when I did. https://bitcointalk.org/index.php?topic=77343.msg1079489#msg1079489 (Not that Pirate's relevant, the 3.xk from JRO is what's been leaving me basically operating with no equity for months, now)

At any rate, I think your solution is clever and workable. Any bond-holders who make that request using the .125BTC/bond figure today will be paid out within a few days. I'm not sure if I'll extend the offer to everyone who doesn't send me a PM today, since I simply don't have 1050BTC liquid. "Today" ends in 11 hours, 30 minutes.

ETA: If you want payout ASAP, please send your BDK shares to Kluge:BDK on GLBSE. GLBSE records the sender in the .csv file which makes it very easy to send the appropriate amount of coins back to them. If you place a request today, but do not send shares -- that's okay, the .125BTC/bond price is still valid so long as you made it clear to me that you request the .125BTC/bond buyback price.

Don't mix your coins someone said isn't legal
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