These are just my opinions and nothing i post should be considered to be investment advice or solicitation
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Price is what you pay
Value is what you get
Bonds went out 26 bid
Signature Bank unsecured bonds trading at 21
bonds are safer play than stock
Traders Eye Potential Windfall in Defunct Signature Bank’s Bonds
FDIC balance sheet points to positive worth at failed bank
Seaport has been activing making markets in the bonds
By Reshmi Basu
December 12, 2023 at 9:38 PM UTC
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1:48
Traders are betting that bonds tied to the defunct Signature Bank hold unexpected value, sending prices on the securities soaring from near zero.
In recent days, the bank’s 4% subordinated bonds due 2030 have jumped to around 13 cents on the dollar, after trading in November for a quarter of a penny, according to Trace. Its 4.125% subordinated notes due 2029 also last changed hands at 13 cents, up from a penny last month.
The surge of activity in the bonds — which have been thinly traded since the Federal Deposit Insurance Corporation took over the New York-based bank in March — comes after traders and investors discovered a recent FDIC balance sheet showing that Signature Bridge Bank, the unit the FDIC created to take over Signature, has a positive net worth of $446 million, according to people with knowledge of the matter.
Signature’s failure came two days after Silicon Valley Bank was seized by regulators, and was followed by the collapse of First Republic Bank. FDIC balance sheets for those lenders show large holes — nearly $17 billion for First Republic, and $13 billion at Silicon Valley Bridge Bank.
Brokers including Seaport Group have been actively quoting the bonds in recent weeks, said the people, who asked not to be identified discussing a private matter.
Seaport didn’t immediately respond to requests for comment. A representative for the FDIC declined to comment.
Around $575 million of subordinated bonds are tied to Signature Bank, and any surplus at the bridge bank would theoretically be returned to creditors by the FDIC, the people said.
The FDIC said the takeover would cost its deposit insurance fund around $2.5 billion. The FDIC has begun auctioning off the bank’s portfolio, which included $110 billion of assets at the end of 2022.
Brookfield: Picking Related’s bid for Signature loans is illegal
https://therealdeal.com/new-york/2023/12/12/brookfield-says-fdics-signature-loan-sale-could-be-illegal/
The 4/4.125% bonds trading at 11, decent volume
up 5x since August...somebody w cash seems to have an opinion
Barney Frank: NY "never said we were insolvent."
https://nymag.com/intelligencer/2023/03/barney-frank-says-more-shuttering-signature-bank.html MAR. 15, 2023
"I’m very disappointed to learn, apparently, the Department of Financial Services in New York, which did the closing, hasn’t said we were insolvent! They said, well, they had a problem, because they couldn’t get sufficient data. I mean, I was disappointed when they closed it, and sort of vindicated — they have not argued that we were insolvent. And I think it’s very clear if we had the benefit of those two announcements, we’d still be an ongoing bank."
Howell told Congress SBNY was solvent, bonds = 100%
Transcript: https://www.banking.senate.gov/imo/media/doc/Howell%20Testimony%205-16-23.pdf
"I believe the Bank was well-capitalized, solvent, and had sufficient borrowing capacity to withstand these and future withdrawals. I was disheartened that this did not come to pass,"
video https://www.banking.senate.gov/hearings/examining-the-failures-of-silicon-valley-bank-and-signature-bank
Shay told Congress SBNY was solvent, bonds = 100%
Transcript https://www.banking.senate.gov/imo/media/doc/Shay%20Testimony%205-16-23.pdf
"The bank was well-capitalized. The bank was solvent – indeed, it was always solvent,
with assets well in excess of liabilities even at the very end. And the bank had a well-defined
and solid plan to continue in operation and withstand additional withdrawals. "
What is Conference Code for meeting video?
Provisional ballot for 2nd largest holder?
Falcon-just link to letter, thx
meeting adjourned w/o vote, surprise!
Let's see if the vote, meeting happens
I concur, will not vote, will inform my custodian not to vote my shares
I am voting same as EI, +against BOTH Strauss seats
This is my personal choice, its not advice nor solicitation.
Please read the documentation and decide for yourself
Cap structure agnostic-yes there were some/several
Several destroyed value, this may as well
FTR, like the cannabis strategy A LOT
very smart imo
Back at you - happens every NOL
~$3+. Destroy 2/3+ value, +lawsuit, take 20% for effort?
Just my opinion, question, read up and form your own opinions.
Imo $1 billion NOLetc shell worth $100 million - see comps
Thx! Pls include NOL comps, strikes
$1/share is < value of clean tax asset - in my opinion
Think sb more like $3, guess where the difference is going?
NOL limitations only apply 5% holders/groups - i believe
Lots of weird info in those documents in my opinion
Not investment advice
I'm voting *against* Strauss - both seats. My opinion, not advice.
Read the materials and come to your own conclusion.
I assume people are "witholding" for director and "for" acct?
I will attempt to add annual meeting info as a sticky as well
*I recommend holders write combined letter to Courts re mistreatment
Would be great if e can get 50 signatures, provide our collective holdings
I'm happy to help, def dont think i'm most informed holder
Scandal-Ridden Texas Real Estate Fund Faces Investor Rights Suit
Bloomberg Law
By Andrew Ramonas and David Hood
19 October 2023
• COURT: Md. Cir. Ct., Baltimore City
A United Development Funding shareholder has sued the beleaguered Texas-based real estate investment trust alleging it thwarted investors’ rights to nominate new board trustees after former executives were convicted of fraud.
UDF, ex-CEO Hollis Greenlaw and other trustees engaged in an “unlawful corporate governance scheme” to protect themselves from removal despite years of wrongdoing, shareholder NexPoint Real Estate Opportunities LLC said in a complaint filed in Maryland state court Thursday. NexPoint is the largest shareholder of UDF IV, a UDF fund organized under Maryland law.
Greenlaw and three former UDF executives who aren’t targets of NexPoint’s lawsuit were convicted in 2022 of using what prosecutors said was “a classic Ponzi-like scheme” to pay one fund’s shareholders with money from another fund’s investors while sidestepping disclosures to the Securities and Exchange Commission. The executives appealed, but lost their challenge in July. Greenlaw is serving a seven-year prison sentence.
“UDF IV has perpetrated and covered up a massive fraud on shareholders, effectively depriving them of their fundamental right to sell their shares and allowing the Company to languish for years with no clear business plan or direction,” NexPoint said in its complaint, which is seeking the ability to nominate and elect new board members.
UDF did not immediately respond to a request for comment.
Years-Long Concerns
The lawsuit comes three years after NexPoint submitted paperwork to the SEC saying it was interested in assuming the management of UDF IV following mounting governance concerns and legal issues for the fund.
The shareholder’s 2020 filing followed an $8.2 million settlement between Greenlaw and other ex-UDF officials and the SEC in 2018 over allegations that fueled the criminal case against the former CEO and others. UDF last held an annual meeting of shareholders in 2015, violating Maryland law, NexPoint said.
Greenlaw and other trustees quickly amended the UDF IV’s bylaws to prevent NexPoint from making board nominations after its SEC filing, the shareholder said. NexPoint said it tried to nominate candidates again ahead of an annual meeting scheduled for this December, but was denied by the fund.
NexPoint also is suing UDF, Greenlaw and other former executives in Texas state court, alleging they inappropriately used fund money to pay legal fees battling criminal convictions. UDF board members didn’t appear to assess whether the ex-officials were entitled to legal assistance, NexPoint said in its Maryland lawsuit.
“UDF IV’s shareholders must have the right to vote these individuals out of office and replace them with individuals who will protect the shareholders’ investments and try to deliver to shareholders the returns that were promised when they invested,” NexPoint said.
NexPoint is represented by Zuckerman Spaeder LLP.
The case is NexPoint Real Estate Opportunities, LLC v. United Development Funding IV, Md. Cir. Ct., Baltimore City, complaint filed 10/19/23.
Scandal-Ridden Texas Real Estate Fund Faces Investor Rights Suit
https://news.bloomberglaw.com/esg/scandal-ridden-texas-real-estate-fund-faces-investor-rights-suit
so far this looks like .455 or so unrealized profit vs last trade $13?
*****Bitmain, Anchorage Expected to Take Equity in Bitcoin Miner Core Scientific as Part of Bankruptcy Plan
CORZQ equity reinstated, exits bankrutcy by mid-October? https://www.proxydocs.com/0/001/919/028/core_scientific__ds_hearing_notice_dn_1024_5.pdf
How much is stock I already own worth? $2?
Thats the number I have seen discussed...would love to see a review of the math...thanks...
$825million NOL (p18) 2,074,441 shares - financials: https://d1io3yog0oux5.cloudfront.net/_70d6eb29082d14d5c271e79d3d83f75e/pmigrp/db/224/391/pdf/staples_scan.pdf
Value FNBCQ $2+ ? Interested in the math...
Hopefully we get some movement here soon...
$PMIR s/b trading $20 if not "Expert Market" security
Full service brokers, no online discount brokers
"PMIR" $825mm NOL, 2.1mm shares, sb trading $20/share
if it wasnt "Expert Market" / full service brokers only
Lancer Capital / Avram Glazer ($MANU, Tampa Bucs etc) sponsor
https://d1io3yog0oux5.cloudfront.net/_70d6eb29082d14d5c271e79d3d83f75e/pmigrp/db/224/391/pdf/staples_scan.pdf
imo $CORZQ will trade $2-4 after bankruptcy
my guess is old equity gets about 50% (or more) of new equity,
I thought about serving on equity committee