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Post# of 87366
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neilhk

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neilhk

Re: neilhk post# 5025

Thursday, 10/11/2007 9:51:05 PM

Thursday, October 11, 2007 9:51:05 PM

Post# of 87366
Conduit Lenders: Further thoughts on possible merger partner for HCPC

The previous post quoted an extract from the following website:

http://www.commercialbanc.com/conduit-loans-102.html

"Within the capital marketplace there are a number of conduit lenders, including, life insurance companies, pension companies, financial services firms and some of the nation's largest banks and investment banks.

We know from the WallSt.net interview (and the shareholders letter) that HCPC's longer term plan is:

"Plan to merge with a conduit lender to give the company direct access to more capital and different structures. This merger is expected to help us carry out and get to our plan to organise a bank."

Given that fact, it is unlikely then that the merger partner would be an existing bank....they want to form/ organise one, not merge with one imo:) From the conduit lender candidates mentioned above, I would think we could narrow the potential merger company/ conduit lender to being one of the following:

1. Life Insurance Company
2. Pension Company
3. Financial Services Firm

HCPC did PR a potential merger partner last year with a London Insurance Company.

http://heritagecapitalcreditcorp.com/sitebuildercontent/sitebuilderfiles/hcccsignsletterofintenttome....

The merger did not proceed as originally planned:

http://heritagecapitalcreditcorp.com/sitebuildercontent/sitebuilderfiles/hcccprovidesupdates.pdf

Extract as follows:

"After a six month due diligence period, it was determined that the merger was not beneficial for the companies."

Although this particular merger did not proceed, it would still appear then that a merger is still very much part of the bigger picture for HCPC. If HCPC has developed innovative products (such as the BCLOC loan) that have good potential in the current marketplace, it would make sense that they would see a mutual benefit in a merger with a larger financial institution to realise that potential by scaling up their operations imo.

GLTA









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