Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Breaking news ....
Big News today! ....
The 2nd Amended POR and 2nd Amended Disclosure Stmt has been filed .....
MMPI is offering to buy your shares for 8 cents OR will allow you to buy an equal amount of NEW EQUITY shares at 7 cents
limited to 299 shareholders .... with a reverse stock split possible if more than 299 shareholders
more info to come
Its RM's bro buying today ........
its the window washer's bro Alex buying MMPI with his RUBO $$$ ...
soon enough he'll launch an MMPI takeover at a dime .. YIKES!
hey, if Alex can buy RUBO for $90 million he sure as heck can buy MMPI for $9 million ...
BTW, did you go back and check your avg cost basis ... lower or higher than ten cents?
Rights offering ....
im interested .....
but i didnt read your POR to be a rights offering to exisiting shareholders ...
anyways ....
if offered to exisiting shareholders, how do you/we get around La Salle ......
I like the idea and the plan ....
OCC/OPM Capital Plan for Oldco
but then i ask .... would you do this deal at $1 per share as the buyer if you had $20 million .... and more likely than not let a bankrupt window washer to still be in charge ... as he would still own 40% ....
i wouldnt ....
and would this even get approved by a vote of the equity holders
the concept is correct to raise $20 million (could be as high as 50) .... but the $1 price is way too high IMO ...
and the preservation of the NOL isnt necessary .... the Company is not making any money, its losing money and all of their properties FMVs are below their costs so the shelter of NOL carryover is not required ...... the NOLs have no value ....
anyways, you're on the right track .... i like it ...
i have no idea ...
56 chevy, c'mon dude ...... its worthless for anyone to predict the price of this stock .....
and more importantly .... reread my posts ..... and try and meet the challenge ... propose your own POR and post it here ....
i have challenged EI to do it and he comes up with some quirky first tell me what you think the price of the MMPI stock will be when i propose a plan .... i actually laughed when i read his post ...
it made no sense to me ...
this MMPI BK is unlike any other he's dealt with ... in form and structure .... and he's fumbling around like its all the same ... it just aint so ....
and you should now be very careful cuz its becoming apparent EI has no idea/opinion what a competing plan would mean to existing equity ...
i even gave everyone $300 million to work with .... YIKES!
one hundred and eleven ......
assuming no dilution of existing shares ....
one hundred and eleven pennies otherwise known as $1.11 per share ... ive put this per share price up before ..
otherwise factor in dilution ....
good luck ....
EI, thanks for the input ...
i do appreciate your thoughts and work ...
now one more thing ....
can you submit a basic competing POR .... assuming you have $300 million in cash .... so we can see what your opinion is regarding why you believe a competing plan will bring value to existing equity ....
ive challenged myself about this and i cant seem to come up with a plan that provides existing equity with $$$
here's what we need to do IMO ....
we need to provide the court with convincing and forceful evidence that equity exists (as is), no new equity is required, that MMPI is viable with restructured debt, and that the plan is confirmable ... take a vote, confirm and move forward ....
otherwise please share with us a competing proposal that in your opinion would bring $$$ to existing equity holders ....
which leads me to the conclusion, if we're not the competing plan, we're not going to be the equity holders .....
You are doing a great job of challenging ....
By challenging EI ......im challenging myself .... to think and work through the dynamics of MMPI's BK process ......
===========================================
and for eom .... good for you that you bot your MMPI shares post BK ..... and so now ... care to share your avg cost basis?
are you higher or lower than STT's avg?
are you higher or lower than the window washing Dick's avg?
FYI, Dick purchased 3.3 million shares at $10 in the IPO and 1.4 million shares at $10 in the summer of 2008 ..... YIKES!
do you know STT's avg cost basis for his 12 million shares? .. its public information ....
====================================================
still very long MMPI in seven figures for number of shares ...... not really convinced why .... just yet ....
maybe im waiting for EI's competing POR .... he's got the money now
it's the distinguishing factor
>>>> The delimma ...... The company is the Debtor in Possession. Messrs. Meruelo and Maddux are shareholders along with us. You might deem it semantics.<<<<
Not just semantics, but the 51% is THE distinguishing factor for MMPI .....
>>>>Creditors are rarely allies of Debtors, but the "Friendly Committee Members" postponed all attempts for an alternate plan (or plans). <<<<
they're a friendly committee cuz Dick is in charge (51%) and will determine if the committee members will meet next month's mortgage payment and/or in the future if the kids will get to go to college ... wouldn't be that way if Dick were just a paid CEO ...
>>>Since you utlize PACER, I am sure you read that one plan called for paying all the creditors in full and retaining current equity holders. Why? In order to utilize the NOL's, existing creditors and equityholders must retain 51 percent of Newco.<<<
I believe that was Dick's argument for issuing new shares where he still held 51%
>>>The Creditors are arguing LaSalle for a reason. All they want is open market solution. In this role, they are acting as our ally. We current have no committee of our own, but they are funding a solution for themselves, which may benefit all shareholders.<<<
Let's get rid of La Salle by no new equity injection, allow divide and conquer to work its magic and wah lah exit bk intact ... YIKES! still in the tank with Dick
>>>>Opening the proceedings to competition may result in more than two proponents. Meruelo & Co. can then call or raise the pot.<<<
EI, please accept my challenge to use your new found wealth from your uncle (LOL) and submit a competing POR ...
Here comes the Judge ...
I agree .... this Judge is no dummy
so what's the Judge likely going to do ...
sorry Dick, you need to ....
We are the debtors
okay .... EI is good at copying and pasting what's in the court filings ... i think we all agree on this ...but EI, IMO, is weak at drawing an opinion about what they mean ...
first, its important to understand the most basic facts of this BK case .....
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
we, that's all of us (including Dick), as equity holders are the debtors ...
one equity holder (Dick) has a 51% position .... and is the debtor in possession .... and we the debtors owe lots of peoople lots of money ....
we, that's all of us (again), need to restructure our DEBT ...
the creditors are demanding immediate pay or possession (foreclosure) of their security ......
the creditors are NOT our allies .... we are asking them to take less than we promised we'd pay them .... some have said okay .... lots are OBJECTING ....
Dick has submitted 2 PORs on our (LOL) behalf ....
unfortunately DICK's plan says i do not want my fellow equity holders cuz im in a debt death box with now way out ... even if/when MMPI survives ive personally guartaneed all the debt .. and ill personally owe the money .....
therefore please please please Judge, wipe out my personal guarantees and hand over 100% of MMPI to me and my bro w/o giving my fellow equity members anything ... please
that means we are in the shark tank and swimming with a real shark ... that wants to eat us whole .... cuz there's no other food in the tank ...
:::::::::::::::::::::::::::::::::::::::::::::::::::::::::
TWO important points to take away from this ....
the creditors are not our ALLIES .... when they file a motion its most likely not to argue in our (the debtors) favor ..
and we're live bait in a shark tank with a big shark waiting for the Judge to say BITE ...
=========================
so what are the alternatives .......
a Competing Plan(s)? really? what do they look like and from who ....
each objecting secured creditor cant wait to submit a separate POR plan that says ill take my security in lieu of debt ... see ya ... remember we have 53 separate cases being jointly administered ...
so here's a challenge to EI, first, and then everyone else ...
you just received a letter informing you that your rich uncle drsandcrs (lol) died recently and named you as the sole beneficiary of his estate ..... $300 million in cash .....
WOW! THANKS! .....
now submit a POR as an MMPI equity holder, or otherwise, ... please do your best to use the KISS style for proposing a POR ...
my challenge to you is to focus on the equity holders and tell this board how much of your $300 million would be proposed to go to exisiting equity holders and why you would ... especially when Dick owns 51% ....
=========================
56 chevy, please stop waiting for EI to do your thinking for you .... what would your POR look like ....
and eom ... not sure what to ask of you ... how about the last trade on MMPI today and on what volume ...
and everyone else ...... please feel free to provide some input ...
The Equity Investors and Treatment of Equity....
56 chevy, this is what you, EI, STT and I are all interested in right????
why NOW? please go back and refresh your memory of the dates the PORs were filed ...cuz thats when MMPI and RM said "up yours" to you, EI, STT and me alike re our equity investments..
and a lil FYI, ive been an equity holder since pre BK
on the one hand, i can understand your appreciation towards EI for posting information on this board re MMPI's BK proceedings for your benefit ... good for you ...
on the other hand, i prefer to go directly to the source and am reviewing nearly all available motions, pleadings, tanscripts and letters of correspondence filed with the court .... good for me
so how on earth could i know something's coming our way ...
here's one paragraph from MMPI's Reply to Objections to its 2nd POR filed with the court May 28, 2010 ....
=======================================================
The Equity Investors and Treatment of Equity.
Some creditors and equity holders have objected to the Second Amended Disclosure Statement with respect to the treatment of equity holders and the identity and financial wherewithal of the Initial Investors and the identity of the Eligible Investors. The Debtors are presently reviewing issues related to the equity treatment and expect to provide an update with respect to such treatment and equity issues prior to the hearing (June 21st) on approval of the Second Amended Disclosure Statement.
==================================================
based upon the first two PORs I have low expectations of the gambler when he provides the update ...
just one persons view .... and your entitled to yours ...
The deal is done .. Extension will be granted
there may be a battle ... but its a futile endeavor ... from law firms lining their pockets with our money and believing they're the smartest guys in the room ...
otherwise ...
The creditors committee is in chaos and therefore IMO an EXTENSION is a done deal and will be granted just so the JUDGE can sort that quagmire out ..... big changes coming there .... extra time is required
besides this is actually 53 different BK cases (jointly adminstered) ..... and the judge aint gunna allow 53 separate PORs multiplied by the number of interested proponents ..... the JUDGE just isnt going to create further chaos for her court ....
she's planning her retirement ....
EXTENSION will be granted ....
then its on to the next VERY VERY important date ....
which is .......
when MMPI amends its 2nd POR for the equity holders ... its coming .... and Dick (head) told the court its coming .... specifically for the equity holders ...
keep your laser vision on the right target ... although based on the window washing gambler being in such a debt death box i do not really expect a different result ...
the other very big deal is how the JUDGE will rule on the "New Value" issue .... pay attention to this issue ... do you know what im talking about ... if not ... be sure to educate yourself about it ..
this is contested and needs a ruling prior to approval of the POR
still believe this works best ....
extension granted ... divide and conquer takes down 4 more lenders ...
Judge rules the equity plan is New Value ... and MMPI amends the POR by scrapping the equity provisons and we go to a vote ....
Plan approved .....
or
LIQUIDATION and we take our $1.11 per share
Been to Phillipe's in LA ?? ...
if EI gets to LA ... we can all meet
EI ..... ever been to world famous (maybe LA famous) Phillipes in LA ... famous for their french dip sandwiches ....
and actually very near ..... two unencumbered MMPI properties .......
otherwise we can go uptown ??? and have a nice dinner and then check out the views of the penthouse of the 717 building ....
wait ... MMPI no longer owns ..... ooops! $50 million down the MMPI equity drain ..
dont forget ... so far ..... RM is a wealth destroyer ..... and .... not the kind of partner .... to be in business with ...
I'm a believer ......
I believe in a competing plan ... as long as i'm (part of) the competing plan ....
otherwise ...IMHO ... its a pipe dream that any other competing plan will include any offer $$$ to exisiting equity ...
if you're serious about making the BK hearing ....and if you get out to the LA area ..... allow enough time so we can connect ... we can meet in downtown LA ... kick up some dust in LA and take a brief tour of the MMPI properties (if you haven't already) ...
anyways ... my treat for dinner ..... if you make it out here
good luck to all ..
so there's another option
never a dull moment .....
thanks ...
kt, please feel free to share additional information ...
a dime is a dime ...
and yes its drs and crs
i post the developments of MMPI's BK as i see it ...... sorry if you wanted a rainbow full of colors ...
the picture isnt pretty after BK and especially May 1 and im not going to live in a fantasy MMPI world ...
I am as long MMPI as anyone on this board ??? and would love to see it fully realize its value ..... which BTW ... im the only one who's posted a per share number ....
but RM is in a personal debt (death?) box and its forcing him to take down everyone if he's even got a chance to survive this ... he may not be able to ... he may be cooked by his personal debt & guarantees
okay then .... A Competing Plan to save us ....
fugheddabouuuuutitt ....
its a pipe dream ... its a fantasy ..... ive previuosly posted about this ... even if a competing plan appears ... they aint giving exisiting equity a nickel .... why should they when RM has already said it aint worth a nickel in his own POR ... the standard has been set
TWO OPTIONS IMO .....
1. Judge rules Meruelo is a jerk (with the help of legal motions filed by us) and denies his POR as to equity treatment
2. WE become the Competing Plan .... which is complicated for all sorts of reasons ... and by RM's 51% ownership ....
Anything other than the above and we are probably TOAST! NADA!
Okay, maybe a few FINAL OPTIONS .....
1. divide and conquer kicks in and POR doesn't need equity and corp is sustained as is ... exit BK with RM as our partner ... YIKES!
2. liquidation where we receive a dime, a quarter, or a dollar per share
i will ask one final time ....
if RM has veto power over the creditors committee please tell me why he will not have veto power over the equity committee ...
will someone have their legal counsel review and tell me differently ....
and if the end result of an equity committee is MMPI exits BK intact but with RM in charge how does that maximize our equity value since he's burned all of his bridges and there's no place to go but down the river with him ..
im doing the leg work and some heavy lifting and posting something about MMPI prospects ...
pay attention ....
if you have a good idea on MMPI ... post it let it be challenged and be ready to support or defend it ....
give up the personal challenges (attacks) .... and yes there may be a time when ill take a dime or a nickel or even a penny ... time and circumstances will dictate ....
good luck to all ...
maybe he's about to buy .....
some people never cease to amaze me .....
dude, the gambler is planning to squash your equity to smitherines ... that would also include mine .... not good
no better insider than a bro to have as a partner ...
so yes maybe the bro's are about to buy ..... it's just they ain't planning on buying your MMPIQ shares and has told the world and the BK court ... in the POR
give up the cheerleading routine and start thinking ....
stay alert ..... stay alive ..
loading up the war chest ....
Richard's brother Alex is cashing in (selling) his 1,000,000 plus shares of RUBO
Alex tried to acquire RUBO but was outbid and is now selling his shares
The Meruelo war chest is being filled up before the next MMPI update
an update is forthcoming .....
From MMPI's most recent reply to objections ....
L. The Equity Investors and Treatment of Equity.
Some creditors and equity holders have objected to the Second Amended Disclosure Statement with respect to the treatment of equity holders and the identity and financial wherewithal of the Initial Investors and the identity of the Eligible Investors. The Debtors are presently reviewing issues related to the equity treatment and expect to provide an update with respect to such treatment and equity issues prior to the hearing on approval of the Second Amended Disclosure Statement.
IMO, dont hold your breath waiting for the update
The Competing Plans ...
EI is posting some very good/important information from the Secured Creditors as filed in motions with the BK court .... with BOLD highlights and UNDERLINES .....
However (of course), its what the motions argue (imply) for exisiting equity that matters .....
not enough time right now.... so i will post my opinions/views about implications of the motions this weekend ...
lay low and avoid the radars ......
The Fix Is In ......
The Official Committee of Unsecured Creditors fired SK in part because of the call on April 6 that Mikey likes ...
and ASAP ..... we, yeah that's you, me, SST, EI, 56Chevy need to have legal counsel raise a conflict of interest issue with the court as to each individual member of the committee ...
the OCUC members are on the MMPI payroll ...... have kids in college .... need to pay their own mortgage, could go bankrupt themselves and dont want to f..k with Meruelo, their major source of revenue
Dick (the window washer) Meruelo gave them a wink as they fixed the plumbing this week and reassured them they were all good, but if a competing POR is otherwise submitted ...... you just never know ...
The Fix Is In ...
the Committee will vote in favor of the Robber Baron's POR
SK has been fired .....
real trouble in paradise ......
SulmeyerKupetz has been fired by the unsecured creditors committee .....
the committee wants their money with interest ...
and is not interested in a competing POR ...... or new owners for that matter ...
in fact committe members are ready to sue other committee members ...
oh well .... so much for that competing plan idea .....
YIKES!
not good news ....
back to option 1 or option 2
MMPI board all fired up .....
well allright now .... its about time ....
look ... things changed dramatically for equity holders on May 1
prior to that the minority equity holders were provided an offering
after that, Meruelo said f u to the minority equity holders ..... no rights to you whatsoever ... its all mine ..
and IMO an equity committee aint gunna help ... so dont place your bets there ...
here's a link and discussion re equity committees ... please read and let me know how/why/when a committee will bring out the value in MMPI ...
http://www.mcmbm.com/Upload/Publication/BHarrison_EquityCommittee_1006.pdf
did you pay attention to the part where creditors will oppose the formation of an equity committee .... so its us v. all creditors and a 51% equity holder who is also the DIP (approved by and acting as the BK trustee)
and EI (and everyone else's rah rah support) still failed miserably to address a 51% equity owner even if he's an "insider"
being an insider can't infringe on rights as an equity owner .... because Meruelo, as DIP, is acting in place of the trustee ... he cant be an excluded 51% equity owner ...
anyways here's the Robber Baron's POR
the POR asks for a cramdown of lenders (gotta be careful here as this is important to allow equity holders to be wiped out) and has provided an analysis that upon liquidation MMPI is worthless, wants his personal guarantees wiped out and wants all of the company for ZERO .... the $10 million moves money from one pocket to another and nothing for you and me ....
any competing offer will do the same, they'll just increase the millions they're willing to shift from one pocket to another and no money for equity holders ...
----------------------------------------------------
IMO, here's two options for minority equity holders ....
Option 1 - with several parts .....
no equity committee ... its a waste of time and money and the minority equity holders are already running out of both
the divide and conquer plan really kicks in as the creditors realize owning the underlying negative cash flow properties is worse than a performing 4% loan ...
the judge approves all settlements that have been submitted by MMPI and the creditors
then the judge rules the plan is unconfirmable ..... due to the unequal treatment of minority shareholders amongst many other reasons and requires Meruelo to take his $10 million and shove it up his a hole ... and his personal gaurantees remain in effect and reduces his salary to $150,000 per year, no benefits allowed
the judge simultaneously rules that the creditors in opposition to the plan may foreclose ....
the plan is approved and MMPI shoots back up to 25 cents per share ... huge discount to actual value as Dick (Richard) Meruelo is still in charge
or ....
Option 2 ...
the judge cant figure it all out, is ready to retire (she is preparing for this) and places MMPI in liquidation ...
IMO, liquidation provides $1.12 cash to all shareholders
--------------------------------------------------
and to 56Chevy ...... sorry you dont like my writing style ... i try to be a little creative with my writing ... and so i try to lighten up a post about technical BK issues .... sounds like you may be having trouble with this .... well just want to say ..... get over it
----------------------------------------------------------
lastly, im long MMPI in a major way ... no where near Taylor in number of shares but close to Taylor in the order of shareholders
doc the pro voc ateur ........
pro voc ateur defined as "one who provokes" ......
the doc is definitely trying to provoke ...... provoke a response in defense of MMPI .....
thus creating an opportunity for each MMPI equity holder to rigourously determine whether MMPI is worth anything more than what its currently trading at ...... 7 cents
don't worry, be happy ..... it's worth more .... isnt riqorous enough ...
IMO, any posts in defense adds value to the MMPI board ...
as an example ..... EI hasnt responded to the 51% DIP owner question ... the doc believes EI hasnt dealt with this before and hasnt determined what it means for a committee of equity owners in BK ...
IMO, it means the window washer has veto power over every other POR that will impact equity holders ..... rendering them useless to bring out the value of MMPI ...
besides the gambler has offerred ZERO to the current equity holders, will inject $10 mill and gain 100% control ...
IMO, the competing offers will look the same .... ZERO to current equity and inject $15, $20, $30, pick a number million and gain 100% control .. the robber baron intends to wipe out equity, so why would any competing offer do anything different ...
the work ive done w/o a doubt has helped me id some very big BK risks and im sharing them in my own style with the board ...
simply trying to personally attack the doc is an effort without much value ... to the MMPI board ..
---------------------------------------------------------------
so ... get your game on and start posting on the MMPI board .... why you believe MMPI is worth more ...... than ZERO ...
and be ready to DEFEND it ....
is anyone awake on MMPI ....
EI is asleep at the MMPI wheel ...... and you're all just following along .... wheeeee ...
no additional committee can save MMPI .....
does anyone even have a clue what MMPI owns ...... and what it owes .....
gimme a break ....
I have inspected 90% of the properties ... we can call them "ugly bettys" ...class "C" properties .. im surprised someone actually loaned money on some ... im not kidding
and no money is available ...vacant ... unencumbered or otherwise ...there's no money for "A" properties ...
now MMPI wants exclusivity through Sept ...c'mon ..
every day that passes .... values are declining .. as legal fees soar for MMPI ...
things are getting worse .... not better ... in CA ... $20 billion deficit ... that's with a fat fingered "B" not "M"
first person that offers me a dime for MMPI can have my shares ...
MMPI is toast with Meruelo in charge ...
time for liquidation and it needs to be NOW! .....
(btw, the fact that no one posted a response to the per share value of MMPI is a huge indication of how weak this board's analytical ability is and not a good sign)
I guess the board contributors just "hope" the MMPI stock price goes up .....
FYI, relying on a committee or "hope" is a losers game ...
time to start a collection .....
it's a really good Q ....
(Maybe we can take up a collection and buy you out?)
if you give it some thought .... its an important Q
here's 2 underlying questions that need answering ...
1. How much per share is MMPI really worth as of today?
2. How much per share is MMPI really worth tomorrow if the window washing poker playing robber baron remains in control and continues to (mis)manage its assets?
here's my answer to the the two questions ....
Q1. answer - my stressed tested (all assets sold under stress) analysis shows MMPI is worth ...... $1.12 per share
Q2. answer - post BK with RM in control my analysis shows MMPI is worth ....... right where its trading now .. between 10 cents and zero
it would interesting to have everyone copy and paste the two questions from above ......
and then start a collection of answers to the questions ...
the roof, the roof, the roof is ....
look your entire MMPI house is on fire ....
every day that goes by MMPI loses more $$$ money
and you make posts as if the appointment of another committee for MMPI will be the holy grail that will put the fire out ...
you make the point the company is owned by all shareholders and you're technically right ....
what you're missing is ....
CONTROL ......
you are not focused on 51% ownership .....
stay focused on this like a laser beam ...
measure the implications .... now and tomorrow ...
The robber baron is in control now .... and will be tomorrow ..
the minority equity holders needs
MMPI to be liquidated .... time for MMPI to cut their losses ... and put the fire out for good ...
id rather take my quarter and pay Richard Meruelo to wash my windows than to leave my quarter and pay him to manage a company i have an ownership interest in ...
trust me ......
c'mon ...... dangerous words to use IMO ....
we already have a BK "trust"ee, she's appointed a real DIP, they've hired atty's, accountants, securities lawyers, turnaround specialist and submitted a POR
after the Equity committee is appointed and spends more money on attys, accountants, turn around specialists etc etc etc ...
what's a POR look like ..
here's what it looks like IMO ....
sell the cash flow negative properties, sell the vacant properties, sell the properties w/o equity, pay down debt, what's it leave ...
few properties, high paid executives and less than a 4 year window to find new lenders ... guess what ... there ain't any and especially for MMPI ... uh oh ... better sell those properties too ...
it's called LIQUIDATION ..... better now than later ...
let's take our quarter or half dollar, say BANK and find a better idea ....
the window washing gambler is a wealth destroyer ....
no need to give this guy one more minute with our equity ... he's destroying it .... and he's legally trying to rob you of it ...
i say call his bluff and make him eat cake ....
MMPI's largest tenant .....
APP is in financial trouble ... check this out ......
http://finance.yahoo.com/news/American-Apparel-posts-1Q-apf-3393198666.html?x=0&.v=5
also MMPI filed a motion today basically saying ...
since MMPI is seeking to put the screws to the lenders by forcing them to accept lower terms .....
therefore, under the absolute priority rule of BK ....
MMPI must also screw the equity holders ..... Wah Lah ... cancel the shares ....
and the new Private Placement doesn't qualify as "New Value" and therefore the window washer is entitled to the whole company ..
all laid out in legalese in the filing .... im not kidding .. with all legal work paid for by the equity holders .... oh yeah ... my shares are being canceled anyways ..
IMO, the only way out for the minority $$$ equity is liquidation at this stage ..... scorched earth ... hope we pin the gamblers rear end with dueces (22) cents per share which isn't enough for him to pay his debts ...
im serious about this .. f..k rm
The ocean is in motion ...
i think its time to make a motion to convert MMPI to Chapter 7 liquidation
look .... Meruelo is a robber baron ..
even if a 3rd or 4th or competing POR is approved .... the window washer will be in charge and will ...
simply drain MMPI of all the equity .... w/o even a nickel going to minority shareholders ... and only a fool would be interested in buying MMPI shares if he's a majority shareholder
he's burned every bridge imaginable with lenders ... and has tried to screw the public shareholders .....meaning there will be no refinancing/public money 4 or 7 years from now when the debt becomes due ...
leading to another BK ..
so, IMO .......
its time to get liquid by liquidating MMPI, let all the creditors get paid in full, give the shareholders (including the poker player) their 25 or 30 cents and let MMPI go bye bye ...
time for a motion ...... now that's the letter the trustee should receive from the minority equity holders ...
Insiders v. equity owners ....
be careful not to confuse the two ....
insiders are not always equity owners ...
and equity owners are not always insiders ...
in MMPI the largest "equity" owner is Meruelo and he's also an insider ....
so we can exclude Meruelo as an insider .... but
we will not be able to exclude him as an equity owner ....
IMO ....
the minority shareholders need to vigorously oppose Meruelo in court ..
by demonstrating that MMPI has a Royal Flush of Equity ... and
to have the judge uphold the securities laws ...
and not permit Meruelo to become a court approved window washing, poker playing robber baron ...
at this stage, converting to CH 7 liquidation may be in the best interest of the minority equity holders ...
----------------------------------------------------------------
and yes EI your efforts are appreciated ...
the times they are a changin ....
no bipolar ... but closely watching my back with MMPI ...
you just gotta know your partners .....
IMO, the minority equity shareholders of MMPI are sleeping with the enemy ....
in the first POR, Meruelo proposes a "Rights Offering" but only to 200 shareholders and those that own at least 450,000 shares ..... first hand he dealt was cruel
in the 2nd POR on May 1 .... he proposes MMPI will "select" the eligible investors in a private placement .... second hand came from the bottom of the deck and is unusual punishment ...
cruel and unusual punishment is not allowed by the constitution
here's the view ...
MMPI has a Royal Flush of equity ..... MMPI needs no equity infusion to have a successful POR ... Meruelo is staging a robbery right in court
but and its a big butt, the minority shareholders need to rely on the proper interpretation of the law by the court ....
as IMO all competing offers to inject/purchase equity should/can/will be vetoed by Meruelo ....
so its the law and that's it ... and if that's it then ...
here comes the judge, here comes the judge .... hope she gets it right
that's all the leverage the minority equity has at this point ..
do you even get this or is it to complicated to process ...
The Veto pen .......
the last post by ei didn't state clearly and concisely if the company he was a creditor of had a 51% equity owner DIP .... IMO this 51% is a critical point
but he posted ..... some other good info ....
a voting threshold of 67% to approve a plan ....
so lets see then .....
if true, Richard Meruelo effectively has a Veto pen all by himself .. Maddux's vote not required ...... and can deny each and every competing plan by voting no ....
and the minority equity holders can only "hope" to defeat a Meruelo supported POR by voting no and "hopefully" denying 67% approval to the gambler ...
looks like a Meruelo heads i win and tails you lose setup .. not a good setup in my opinion for minority equity ...
no wonder MMPI is trading near a nickel ...
The best alternative is for the Court to find the POR is unconfirmable as a matter of law .... and
order Meruelo to stop washing windows and learn how to comply with the securities laws .... amend his POR for compliance and ...
am i missing something ......
its not a matter of how many ....
ei, imo your experience brings value ... but its not the number of Q deals but the facts of the deal .....
MMPI involves a 51% equity owner as the DIP ...
this is a major hurdle IMO .... and im not sure from any of your posts how this hurdle is cleared ....
are there any others you've been involved with that had a 51% DIP and what was the outcome ....
Do you hold a Royal Flush .....
EI, your view is slightly colored by your equity position .... and it's creating a thick fog for you ....
there is no "offer" on the table ... the gambler isn't offering $10 million, $10 thousand, he's not even offering a dime, a nickel or a penny ..... nada, zippo, zilch is the offer to equity holders .... he's canceling your equity
here's what a competing offer just may look like ...
$(insert any number, how about 15, 25 or 100) million of new equity ... cancel the exisiting shares ... get all the creditors to vote in favor .... and wah lah .... a POR is approved ...
and what did the new competing offer provide equity holders .... nada, zippo, zilch ...... not a good result .. therefore dont place your "hopes" on a competing offer
so .... where does that leave MMPI equity today ..... here's my view ..
if $10 million isnt required for a POR than neither is $15 or $20 or $100 million .... so no new offer is required ..... the 2nd POR needs to be denied by the judge
however, if the judge feels the need to provide comfort and cushion for the creditors then ..
the poker game is on and the gambler has shown his hand .... so if you are sure your hand is a Royal Flush its time to call the bluff thats on the table .... that means
cash in your t-bills, your CDs, sell your other stocks and even your aluminum cans and get ready to join a competing offer ....
cuz if you're not the competing offer that prevails ..... you more likely than not will be left holding a losing hand ...
Timing is everything .........
EI, i believe you replied to a post that was prior to May 1st and based upon the first POR
May 1st is when MMPI filed the 2nd POR, revoking the rights offering wherein Richard Meruelo basically told Taylor and all other MMPI shareholders they may or may not be invited to the poker table ....... as MMPI will "select" the eligible investors
the 2nd POR didn't improve the value proposition of shareholders ... therefore equity owners are objecting .... including Taylor .... no surprise .....
besides the equity holders are last in line as to the POR
now lets see .....
The 2nd POR will either .....
be approved ... resulting in a disaster for current shareholders
or denied ... resulting in mass confusion for current shareholders
or an equity committee gets appointed ... resulting in legal manuvering/battle with shareholders owning in excess of 50% of equity ....
all three results are IMO dicey value propositions ...
anyways ..... the best strategy for MMPI is the Divide and Conquer plan where they take down the lenders one by one with settlement agreements like Cathay Bank ......
and that is even dangerous for equity as the settled lenders begin to vote in favor of confirmation
The motion on the Pomona property ...
wad denied buy judge K.T.
demolition will start ASAP ...
the bank lost on the motion and MMPI will quickly move to demo the property ....
YIKES!
Big welcome aboard to Mr. Taylor ....
looks like Steve Taylor has joined the MMPI IHUB board .... so that deserves a big WELCOME aboard ...
can you please add a lil humor to the MMPI saga ...
most here already know that Meruelo plays with a stacked deck and deals from the bottom .....
hey, talking about a stacked deck ..... has anyone ever played poker when the deck of cards were marked ??? .... i have (at Harrahs casino nonetheless) and the result wasn't pretty .... i lost .... go figure ...
so Steve ... feel free to add your MMPI views/experience but try to keep it light ... but real .....
the folks here are good and like/need a lil insight ..
(and if you're not Taylor then feel free to change your moniker before you post, cuz this board will call you out real fast)
The investor list .....
i need your contact information ....
i tried to reply in private to your request ..... but apparently i need a "premium" subscription to ihub to send private messasge