SunRocket Problems At Board Level

Since the collapse sometime on Monday and the management disappearing en mass, it reasonable to speculate that this mismanagement happened at board level and I am coming to the conclusion that the money that was pledged late in 2006 and early 2007 was not given to the company. Again I am speculating but from my experience this is a reasonable scenario. It looks like there was a bust up between the CEO/Management and the Board made up of VCs and the VCs refused to hand over the (semi) promised money. Although a term sheet can be signed, term sheets are ultimately non binding until a contract is signed. Usually there is a bridge in the form of a loan is made to fill up gaps in funding in these cases and that is probably what happened so they could continue to limp along. In the end Lisa Hook et al walked out and that was that. There may well be some creditor lawsuits over the announcements made. Stay Tuned…..