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It's not investments that need to get paid back - it's contracts, or rather the value of the contract. In this case, Xcor would need to pay back the fees they
by shakna 8y ago
It's not investments that need to get paid back - it's contracts, or rather the value of the contract.
In this case, Xcor would need to pay back the fees they said would go to escrow. Not any investor who took equity on the gamble it would be worth something.
- toast0 8y agoWhere is Xcor supposed to get this money? They lost their revenue source, laid off all their employees, and any property they have is presumably not nearly enough to satisfy their debt. The business is almost certain to close pending the resolution of the bankruptcy. Certainly, if people were promised that there was money in escrow and it wasn't, that sounds like fraud, but that doesn't mean those who perpetuated the fraud have the money either.