Some folks have no business investing in microcap companies. They can't handle it and need to take it out on the world. I would pay them back, take out a restraining order to keep them from coming back, get the debt discharged, and move on. I'm not 100% sure but it is basically a claim against future revenue which is usually negotiated down to pennies on the dollar. The creditors end up with chit! Rename the business, take out a new CUSIP, move assets and screw them.
Some folks have no business investing in microcap
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