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The MMPI divide and conquer theory ....
i suggested this several weeks ago as plausible for MMPI
well ...... it's working in favor of MMPI ..... just like dominos all lined up and now falling into place ....
MMPI has reached a settlement with Cathay Bank on $69 million of debt at 4% interest retroactive to January 2009, interest only, all due 4 years from date of approval ..... June 2010
well then ..... looks like MMPI has settled with one more creditor .....
soon enough the others will have no choice .... so it looks like 4% on a go forward basis for all of the other lenders ....
divide and conquer ....
now the focus needs to be on preserving the rights of the minority equity holders ........
Took the tour of the 717 Penthouse ......
took a lil time this afternoon to tour the penthouse suite (and a one bedroom) of the 717 Watermarke Tower ...... 35th floor, 12 foot high ceilings, great views of all of So Cal, awesome balcony, nice bathrooms, small bedrooms, $19,000 per month rent ....
it's just not not my style of living ........
didn't like losing $50 million on 717 but glad it's only going to be $50 million ......
Glad MMPI shook this one loose and got the deal with Watermarke closed ..... IMO, it is THE catalyst and will ultimately result in a successful exit from BK for MMPI ....
Back of the napkin ......
i was thinking here just a bit .....
to protect the creditors and allow MMPI to exit BK, i believe the standard is that there needs to be a minimum of least a 20% equity .......
since they just paid back $90 million for 717 then total debt s/b approx $250 million ... well okay then ..... $250 divided by 80% is $312 ..... the difference is $62 that's the minimum amount of equity required to protect creditors and allow the judge to permit MMPI to exit bankruptcy ......
so my back of the napkin calc is that there needs to be at least $62 million in equity to exit BK
does anyone else have a bead on this BK standard/rule
SEC letters .....
imo, letters can/should also be written to the SEC ...
might as well allow the primary regulator of securities transactions at the SEC to legally argue the case in BK court for the protection of minority shareholder rights ....
starting with the Chairman at .....
Mary L. Schapiro
Chairman of the U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
202 551-2100
and to the SEC atty quoted in WSJ article ....
Alistaire Bambach, Esq.
U.S. Securities and Exchange Commission
New York Regional Office
3 World Financial Center, Suite 400
New York, NY 10281-1022
and the SEC atty assigned to MMPI ....
Sandra W. Lavigna
U.S. Securities and Exchange Commission
Los Angeles Regional Office
5670 Wilshire Blvd., 11th Floor
Los Angeles, CA 90036
lavignas@sec.gov
letters to Judge Thompson ....
the letter to Judge Thompson, which i posted, was not from drsandcrs .... it was from another equity owner .... just wanted to share the info ....
EI - your letter and docket no. is posted under entered vs filed .... not sure what the distinction is ....
A letter to the BK Judge ....
here's a copy of a letter filed with the court from a minority equity holder to Judge Thompson .....
Honorable Kathleen Thompson
United States Bankruptcy Judge
Central District of California
255 East Temple Street, Room 940
Los Angeles, CA 90012
May 4, 2010
RE: Meruelo Maddux Bankruptcy
Dear Judge Thompson,
As a minority stockholder in Meruelo Maddux with 475,000 shares, I am sending this letter to you because an Equity Committee does not exist in this case. The stock was purchased because I believed the company had equity even in this down market, which the sale of 705 W. 9th has proven. The invitation only private placement proposed by the debtors on page 121 of the Second Amended Joint Disclosure Statement, available to "investors selected by the Company" is appalling. The private placement simply wipes out small investors and the debtors abscond with the equity. Please do not permit this to happen.
Best Regards,
Form 15 was filed to ......
suspend MMPI's duty to file reports with the SEC .....
here's a link to the Form 15 as filed by MMPI on 1/19/2010
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001193125%2D10%2D010599%2Etxt&FilePath=%5C2010%5C01%5C22%5C&CoName=MERUELO+MADDUX+PROPERTIES%2C+INC%2E&FormType=15%2D12B&RcvdDate=1%2F22%2F2010&pdf=
General Rules and Regulations promulgated under the Securities Exchange Act of 1934
Rule 12g-4 -- Certifications of Termination of Registration Under Section 12(g)
------------------------------------------------------------------
•Termination of registration of a class of securities under section 12(g) of the Act shall take effect 90 days, or such shorter period as the Commission may determine, after the issuer certifies to the Commission on Form 15 (17 CFR 249.323) that the class of securities is held of record by:
•Less than 300 persons; or
•Less than 500 persons, where the total assets of the issuer have not exceeded $10 million on the last day of each of the issuer's most recent three fiscal years.
•The issuer's duty to file any reports required under section 13(a) shall be suspended immediately upon filing a certification on Form 15; Provided, however, That if the certification on Form 15 is subsequently withdrawn or denied, the issuer shall, within 60 days after the date of such withdrawal or denial, file with the Commission all reports which would have been required had the certification on Form 15 not been filed. If the suspension resulted from the issuer's merger into, or consolidation with, another issuer or issuers, the certification shall be filed by the successor issuer.
Rule 15d-6 -- Suspension of Duty to File Reports
------------------------------------------------------------------
If the duty of an issuer to file reports pursuant to section 15(d) of the Act as to any fiscal year is suspended as provided in section 15(d) of the Act, such issuer shall, within 30 days after the beginning of the first fiscal year, file a notice on Form 15 informing the Commission of such suspension unless Form 15 has already been filed pursuant to Rule 12h-3. If the suspension resulted from the issuer's merger into, or consolidation with, another issuer or issuers, the notice shall be filed by the successor issuer.
---------------------------------------------------------------
Here's the Duty to File as explained by wiki ....
========================================================
While the '33 Act recognizes that timely information about the issuer is vital to effective pricing of securities, the '33 Act's disclosure requirement (the registration statement and prospectus) is a one-time affair. The '34 Act extends this requirement to securities traded in the secondary market. Provided that the company has more than a certain number of shareholders and has a certain amount of assets (500 shareholders, above $10 million in assets, per Act sections 12, 13, and 15), the '34 Act requires that issuers regularly file company information with the SEC on certain forms (the annual 10-K filing and the quarterly 10-Q filing). The filed reports are available to the public via EDGAR. If something material happens with the company (change of CEO, change of auditing firm, destruction of a significant number of company assets), the SEC requires that the company soon issue an 8-K filing that reflects these changed conditions (see Regulation FD). With these regularly required filings, buyers are better able to assess the worth of the company, and buy and sell the stock according to that information.
=================================================================
The Rights Offering in the 1st POR would have required a new registration with the SEC ($$$) and so Meruelo is using it as justification (subterfuge) for a Private Placement where he gets to "select" the eligible investors
It's Meruelo's game of poker and he's dealing from the bottom of the deck .....
It's the May Day release ........
On May 1, the second POR was filed that basically says Richard Meruelo gets to "select" the eligible investors to participate in the private placement. The rights offering was cancelled.
Meruelo dealt a new hand to equity holders.
New strategy required.
=============================================================
Also, if you're a believer in MMPI, then imo enterprising investor's letter is creating a buying opportunity in MMPI .........
===============================================================
The manipulation of MMPI stock price continues ....
the stock traded most of the day at 5.5 cents ....
the closing print occured at 3:57 pm at 7 cents on 488 shares ..
let's see 488 shares at 7 cents is a $34 trade .... gimme a break
this has been happening for weeks .....
someone is trying to hide the seller and print a higher close...
doesn't really matter as this whole MMPI gig rests on the BK outcome and it looks like its all or nothing at this stage ....
Calling in an army brigade of attorneys and lawyers ....
here's the body of the letter requesting an army ....
May 4, 2010
Alistaire Bambach, Esq.
U.S. Securities and Exchange Commission
New York Regional Office
3 World Financial Center, Suite 400
New York, NY 10281-1022
ALSO VIA FACSIMILE – (212) 336-1348 and (202) 772-9200
Re: Meruelo Maddux Properties, Inc.
Commission File Number: 001-33262
Dear Ms. Bambach:
I am requesting the immediate assistance of the SEC to prevent the utilization of a Bankruptcy Court by the insiders of Meruelo Maddux Properties, Inc. (MMPI) to effectively destroy the rights of its minority investors and commit what would be tantamount to a securities crime.
Facts:
On or about February 14, 2007 MMPI completed their IPO and raised approximately $426,000,000.
On or about March 27, 2009 MMPI filed voluntary bankruptcy petitions in the US Bankruptcy Court Central District of California - Case No. 1:09-bk-13356-KT, the Honorable Kathleen Thompson presiding.
On or about May 1, 2010 MMPI filed a Plan of Reorganization that provides in part for all secured and unsecured creditors to be paid in full with interest, insiders to inject $10 million in new equity utilizing a Private Placement followed by the cancellation of all existing public shares outstanding even though the plan of reorganization as filed reflects nearly $200,000,000 in stockholder’s equity.
Time is of the essence. Immediate action on the part of the SEC, as the primary regulator, is necessary to protect the minority investor’s rights.
Very truly yours,
(ccd Mary Schapiro and sent a separate letter to CA AG Brown)
FYI, RUBO to be bought for $8.70 per share cash ...
and it's not going to be Alex Meruelo (see today's RUBO news release)
the buyout may now be source of $10 million private placement for his brother Richard
letter from Alex Meruelo et al to buy RUBO last fall
Dear Owen:
We are pleased to submit this preliminary indication of interest to acquire 100% of the outstanding capital stock of Rubio’s Restaurants, Inc. (“Rubio’s” or the “Company”) for cash consideration of $8.50 per share (the “Purchase Price”). The transaction described in this preliminary indication of interest would be consummated by a group consisting of Alex Meruelo and certain of his affiliates (the “Meruelo Parties”) and Levine Leichtman Capital Partners, Inc., or an affiliate thereof (“LLCP” and, together with the Meruelo Parties, the “Investors”).
The Investors (together with cash available at Rubio’s at closing) will provide all of the capital required to fund and close this transaction. There will be no third party financing required to consummate this investment and no “financing contingency.” Furthermore, there are no consents required internally for either LLCP or the Meruelo Parties to fund the transaction. We are highly confident that we can quickly close on the terms set forth herein.
The Meruelo Parties currently own approximately 11.6% of Rubio’s common stock and represent the Company’s largest non-institutional shareholder. Alex Meruelo is the principal shareholder, Chairman and CEO of the Meruelo Group, a minority owned and operated holding company with vested interests in food services, construction and engineering, real estate and private equity. In 1986, Alex established La Pizza Loca, a quick service restaurant catering to the Hispanic community, expanding it to more than 50 franchised and company owned stores.
Real estate development soon followed and the Meruelo Group now has a diversified portfolio of commercial/retail residential and industrial properties. In 1999, Alex purchased the first of four construction companies and the Meruelo Group now has a presence throughout Southern California. Alex is a founding shareholder and director of Commercial Bank of California, and sits on the board of William Lyon Homes and ExaDigm, Inc.
Levine Leichtman Capital Partners is a Los Angeles, California-based investment firm that manages approximately $5.0 billion of institutional investment capital through private equity partnerships and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners IV, L.P. Successful investments in the restaurant industry include Quizno’s Corporation, Cici’s Pizza and Wetzel’s Pretzels.
We look forward to having the opportunity to work with you and the Rubio’s team on this transaction.
Sincerely,
Alex Meruelo
Lauren Leichtman
Chairman and Chief Executive Officer
Chief Executive Officer
Meruelo Group
Levine Leichtman Capital Partners
Equityholders issues raised in BK court .....
Hartland Asset Mgmt et al submitted the following list of issues to the BK court to be determined in advance of the POR confirmation hearing ......
1. Whether the Debtor’s grant of an exclusive right to participate in a private placement constitutes unfair discrimination under 11 U.S.C. Section 1129(b).
2. Whether the Debtor’s plan is a “new value” plan within the meaning of Bank of America vs. 203 N. LaSalle St. Partnership, 526 U.S. 434 (1999).
3. Whether the Second Amended Plan’s third-party releases and injunctions render the plan unconfirmable.
4. Whether a plan is proposed in good faith within the meaning of 11 U.S.C. Section 1129(a)(3) when the plan provides private placement rights to insider management majority shareholders while releasing those insiders from their state law fiduciary obligations and simultaneously eliminates the interests of outside minority shareholders.
a small oops on GGP ....
Simon pulled their bid for GGP today ....
anyways .... there's not a chance for MMPI regardless cuz Richard's in charge and owns with Maddux over 50% of this dog ....
he'd probably sell it (again) for $10 but anything short of that and it ain't gonna fly ..... besides what the hell would he do if he sold MMPI .... go back and cruise Whittier Blvd on Friday nights ...
That's the same reason (control of 51% by Richard) why I think an EC has little or no value ... he would control the committee so its a non starter ....
i think the AG of Calif and the SEC (the army) needs to intervene to stop the POR which is tantamount to a securities crime where he raised $426,000,000 in 2007 from the public and is proposing to steal it back for zero as the $10 million is going inside the company ...
the dude is one mean MF ...
and im wondering who it is that is propping up (manipulating) the closing price of MMPI on a daily basis .... they seem to want it to close over 7 cents daily when no bids exist for the shares .... happened every day this week ...
nasty week for the overall markets this week ... ive never ever seen anything like the ten minutes on Thursday ... DJI gave up 600 pts in less than 10 minutes ... WILD!
YIKES! so much for value stocks ....
ill copy and paste letters to the AG and SEC sometime this wknd ...
The Meruelo story .....
the Meruelo family is pretty interesting ...
mom, dad, alex (google him for a nice story), richard ... and it all started in Cuba
richard's story is he's about 46 yrs old now ... USC grad (fight on!) .... anyways .. and that mom had a lil dress shop in downtown Los Angeles .... and from there grew the tree that blossomed ...
the family is Hispanic, the CA legislature is controlled by Hispanics .. Villaragoisa was in the CA State Assembly ... he's now Mayor of LA ... Richard Polanco (a hispanic) former CA State Senate majority leader sits on MMPI BOD ...
so here's my short view ...
CALPERS had a (slush) fund called an URBAN RENEWAL FUND .... and somehow they picked a hispanic named Richard Meruelo and gave him an unlimited line of credit to buy URBAN properties .... so he went on a nice buying spree ... to RENEW the downtown LA area ...
got control of the properties, contributed the properties in exchange for 38% of equity, filed for an IPO, took $426 million from the public including $30 million from Richard (all borrowed from KeyBanc in FL), paid back CALPERS, ran out of cash, and filed for BK .... i believe he still owes Keybanc 1/2 of the $30
now he's way upside down and needs to squeeze the remaining public equity holders and has filed a plan with the BK court and may just gitt her done...
now before you think im biased ..... im not ...im hispanic, an 'SC grad, just a few years older than Richard ... and very proud ...
just wishing my mom would've owned a lil dress shop in downtown Los Angeles when i was growing up ...
Well allright now ..... then what's another hispanic guy like me gunna do ... well ....
here's my plan .... call in the army ...
we need an army of accountants and lawyers and so that's my plan ...
The eligible investors .....
keep reading .... and be careful
there are no requirements to own existing equity
the eligible investors will be selected by MMPI and need not own even a single MMPI share
so when Taylor finds out the window washing poker player didn't select him ..... he'll have 15 million shares for sale ...
YIKES! ... not a good result
Eligible investors "selected" by MMPI .....
E. PRIVATE PLACEMENT
a. New Equity
To provide funding for the Plan, MMPI will sell in a private placement transaction 500,000 shares of MMPI common stock to the Initial Investors and Eligible Investors selected by MMPI for
the purpose of raising capital in the amount of $10,000,000 ("New Equity"). MMPI has received confirmation that the Initial Investors will purchase at least 250,001 shares for an aggregate amount of at least $5,000,020. The remaining shares not purchased by the Initial Investors will be purchased by Eligible Investors. In the event MMPI does not sell the remaining shares to Eligible
Investors, other than the Initial Investors, then such shares will be purchased by the Initial Investors. The foregoing private placement transaction is referred to in this Plan as the "Private
Placement."
what about all of us "ineligible" minority shareholders or for that matter what if you're "eligible" but not selected by MMPI
Taylor owns 15 mil shares and he may or may not be selected ...who knows ... maybe MMPI (Richard Meruelo) doesn't want to select him .....
YIKES!
i was calling it like i saw it ....
i still see it the same way .... Meruelo is playing a very mean hand .....
MMPI is no place for most people who invest and quite frankly the deck is stacked in Meruelo's favor ....
the 2nd plan is meaner than the first ..... so things have not improved .....
for all the shareholders who are not reading this board, they are about to be whacked upside the head by Meruelo ... with legal docs they will not understand nor have any clue ....
everyone reading this board has been forewarned ...
did i miss something ....
i have a pdf copy of the POR 2nd ....... ive read the entire plan and didn't read/see that section ...
you are reading/quoting from .......
the 1st Plan of Reorganization (POR) as amended
the 2nd POR was filed at 4 in the morning on Saturday.
see below for the new Private Placement from the 2nd POR
===========================================================
E. PRIVATE PLACEMENT
a. New Equity
To provide funding for the Plan, MMPI will sell in a private placement transaction 500,000 shares of MMPI common stock to the Initial Investors and Eligible Investors selected by MMPI for
the purpose of raising capital in the amount of $10,000,000 ("New Equity"). MMPI has received confirmation that the Initial Investors will purchase at least 250,001 shares for an aggregate amount of at least $5,000,020. The remaining shares not purchased by the Initial Investors will be purchased by Eligible Investors. In the event MMPI does not sell the remaining shares to Eligible
Investors, other than the Initial Investors, then such shares will be purchased by the Initial Investors. The foregoing private placement transaction is referred to in this Plan as the "Private
Placement."
=======================================================
If the POR is approved .....
all existing shares will be cancelled ........ and the new PP shares will own 100% of MMPI
be very careful with MMPI and pay attention ....
Richard Meruelo is a mean poker player .. but has also shown us his hand ...
copy and paste ...
we can edit and revise and comment
here's the gig ....
legal counsel is a must ....
there's some very serious dough here and Meruelo is spending your money to play this game ...
no time left ....
its not a game for rookies ..
let's get a one page letter ASAP .... like tomorrow ... and get to all shareholders ... we have the shareholder list
and even though a form letter ...
send it to ....
the JUDGE, the Trustee, and the SEC ...
????????
who's writing the first draft ...
and who's got legal counsel or wants to kick in for legal counsel
The shareholder list of MMPI ...
I believe it is sorted high to low ....
The list starts with Steve Taylor and the guy owns something like 15 million shares ...
anyways ....
enterprising is our go to point person ...
and from there we can all play the same hand ...
public records ....
they file every motion electronically with the court (PACER)...
so give me an email address and i'll send it to you ..
large files ... so be prepared ..
so what kind of 56 chevy do you have ...
i'm not a car guy but my dad has 4 corvettes and is a major car dude ... and a really great guy .... and he owns MMPI ...
go figure ....
nice ......
thanks for the response
and feel free to email me a draft and maybe you/i can share some resources and help the equity holders ...
the game has been called ... and the hand is played ..
fortunately his cards are on the table ..
the sale of 717 ....
is on page 64 of the disclosure statement to the 2nd plan of reorg ..... also filed at 4 in the morning
that deal is done .... good thing too ...
more important ...... and especially to equity owners is ....
the Private Placement ..... and the selection of "eligible investors" by MMPI ....
this requires everyone's immediate attention and immediate action ... otherwise your shares may be cancelled ...
it's possible that MMPI doesn't select Taylor as an "eligible investor" .... YIKES! 15 million MMPI shares go POOF!!!!!!!
you'll need to get enterprising to draft another letter and now that he has a shareholder list ....
btw, i asked enterprise to share the letter that was sent but he disappeared right after i sent a copy of the shareholder list to him ... whatever ...
Do you think the law firm .....
gets double its billable rate when they stay up till ....
The 2nd Plan of Reorg was filed at 4:00 a.m. Saturday May 1st ..
YIKES! Hope they didn't make any mistakes .....
Also, the docs filed in the early morning hours confirm the 717 sale closed last Monday April 26 for $109,500,000 ....
A letter is a letter ......
would you mind copying your most recent letter and pasting to this board ...... if not please feel free to reply to my private email
thanks
The 2nd plan is "selectively" eligible to result in a crime .......
This Meruelo guy is one mean gambling MF .......
The 2nd plan is substantially worse than the 1st plan to exisiting shareholders ......
The Equity Rights Offering .... which wasn't very friendly in the first place .... has been removed and is not an option ....
It has been replaced by a $10 million Private Placement (PP).....
which includes Richard Meruelo and John Maddux at $5,000,020 as initial investors in the PP plus ...
Eligible Investors "selected" by MMPI .....
everyone else gets wiped out, kaput ..
How about if i save you a dime ....
and send you a PDF copy of the current shareholder list at no cost ...
Are you on the list ..........
The list of current shareholders were published with the 2nd POR .... are you on the list ........
would anyone have a use for the list .....
Meruelo has put up his ante .....
per the 2nd POR ...
Meruelo has anteed up $5,002,000 ....... and if you're not prepared to hand over $50,000 to this window washing circus clown masquerading as a poker player ... and become a non public shareholder with shares that are restricted from being sold unless Meruelo buys them first .. then get ready to flush your MMPI shares down your drain .....
cuz this circus clown owns you and he's pressing his bets in this BK process .....
did anyone get over to see the circus ... I plan on taking a tour tomorrow .... will be sure to update this board (of course) ...
Also one of the two Pomona properties received an offer to buy the property equal to the debt .... another $20 million in equity goes kaput ... and the lender is pressing the BK judge to say "BANK" ... so they can collect and go away ... scorched earth without a choice by Meruelo ... more to come
what a real wealth destroyer this Meruelo guy is .... YIKES!
anyways ... will also comment on the 2nd POR as i digest it all ...
Hey look, MMPI is a friggn circus ...
I mean gimme a break .....
First it's window washing then a wedding party in the glass tower and now a circus .......
unbelievable ..... MMPI putting on a circus .... in Baldwin Park ... perfect place for a circus ... anyone live near this piece ... go check it out and let us know .. right off the 10 freeway at Francisquito Ave ...
and they pay cash ... like all the parking lots MMPI owns ....
Meruelo is a gambler and he's running a circus now (for cash)
YIKES!
I'm leaning towards a liquidation plan to be submitted by the OCC ... get me outta here .....
no wonder ......
Give Chapter 7 a second thought .....
it was the second amended plan that is about to be published (maybe today) that was out there not Ch 7.... however
i was thinking about Ch 7 a lil more ...... if there is equity in MMPI and they are currently losing money and experiencing negative cash flows then they need to cut their losses and bail on some/most of the properties ....pay the lenders off ..... and return the excess to the shareholders ... a partial CH 7 .....
i think i might be in favor of this ..
anyways the 717 sale ..... did escrow close? ... haven't seen any news releases yet ..... they still owe nearly $10 million, over and above the $86 million Canyon loan, in construction costs and the property has several mechanics liens against it ... this may be holding up the close
maybe it would be a good thing if the Second POR included liquidation and distribution of what's left .... think about it for a minute ...
besides, Meruelo has destroyed wealth and doesn't appear to be much more than a window washer who likes to party ....
Thats what that was .....
a second POR is about to be submitted ....
thanks for the info ......
should be interesting to read ..... now we'll see what the partying window washing poker player has planned .... i just hope he returns the tall ladder to MMPI ...
Has anyone heard that MMPI ......
is considering converting from Chapter 11 to Chapter 7 ....
something about the $50 million hit they took on 717 and the price being way below what Meruelo expected and was telling the BK court ...
also the continuing negative cash flow of the properties with the default rate of interest ot 15-18% accruing on approx $220 million of remaining debt and the huge legal fees accruing in BK
MMPI currently owes $19 million in accrued interest and that's at prepetition rates (not default rates) and without legal fees
MMPI is going to try and relase all properties to terminate the negative cash flow, say BANK, to preserve what might be left ...
YIKES! .........
The game is on tonight .........
=================================================
So does anyone besides myself ..... think its incredulous ... that Meruelo threw a party last Friday night in 717 as he was about to destroy $50 million in cash ... for the equity owners ... as escrow was about to close ..
from window washing to partying this guy is not earning his $500,000 salary and may just be mentally dysfunctional at this point ...
gimme a frgggng break ...... wealth destroyer throws a $50 million party .... and doesn't reimburse MMPI for the cost ... privelage to 50% owners ..... WOW!
BTW, I called the number (from LA Cowboy' post) for The Watermarke ..... the lady said I could tour the building and I may just go check out the units available for rent and see what $50 million down the equity drain looks like ....... she described the units as "awesome" .... give her a call
=================================================
more about the game tonight .....
Lakers are playing ..... did everyone know that Magic Johnson is a major player in Canyon Realty, the company that loaned the construction money for Meruelo to finish 717 ..... wonder if Meruelo will be at the Laker game tonight warming up before the game shooting hoops with Magic now that he's been paid in full .... gimme a frggggn break ... probably will happen ... keep ur eyes peeled ..
(btw, Phil Angelides is also part of Canyon and sits on the committee of congress investigating the financial meltdown ... he's got first hand experience)
=================================================
lastly, we apparently have two LA Gamblers ..... one in Los Angeles and one in Louisanna ..... and the guy in Louisanna doesn't have the upper hand and better figure out if/when he's drawn his last card before everyone else does ....
The 450 is a good number ....
LA Cowboy or LA Gambler
==========================================
Friday, April 23, 2010
705 W. 9th Street Now Formally For Lease
I just picked up the leasing flier at the front desk tonight since the lobby was open for a wedding reception of a friend of the former owner - Richard Meruelo - that was being held upstairs. The new owners - Watermarke Properties - are going to take possession on Monday and, it appears, may even start showing for leasing as early as Monday.
The new leasing website is at the above link and the leasing number is 213-308-7877. The website has the floor plans for the six different units, a list of all the many amenities but no prices, so far.
Oh, and the building is now called - The Watermarke.
Posted by Brady Westwater at 11:41 PM
============================================
looks like an LA Cowboy knows the LA Gambler and posted his own blog about the building ......
so much for rolling the dice on $160 million and coming up snake eyes ... $50 mil goes poof ..... think id rather be the LA Cowboy right about now ....
and Meruelo then throws one last party ... hope that expense isn't part of the MMPI closing costs ..... where's the paparazzi with cameras ... we need another pic .... YIKES!
MMPI has made an equity capital call ......... and so the play here is ...
hey wait ... first two comments .....
1. I thought AKAPAC asked the "whats the MMPI play" Q .... or do you post under both aliases .....
2. Why no comment on the link of Meruelo washing his windows? I thought it was kinda funny that the paparrazi snapped a pic and is following him .... a bk'd CEO as a celebrity? .... whatever
=================================================
The play is this ...... per the Plan of Reorganization
The capital call is straightforward - $10,000,000 total with a $50,000 minimum ..... to be issued on a prorata basis ... 200 shareholders maximum .... you can bid more than $50,000 but not less ....
and it doesn't take an MIT professor to figure out the prorata shares required to be owned so you can (guaranteed) pony up another $50,000 to MMMPI so Meruelo can afford to pay someone to wash his windows .... you need around 450,000 shares of MMPI to meet the gaurantee
All other shares not meeting the $50,000 minimum will be cancelled ........
Richard Meruelo through MMPI plans on cancelling your MMPI shares unless you can meet an equity capital call......
I referred to the MMPI play as a high stakes game of poker with an $80,000 ante to play .......
If you got $80,000 to play with on a BKd real estate company you'll be okay imo .... if not you could be wiped out if/when the plan is approved ....
a developer and a window washer ......
what?? me worry ......
check out this link .....
its Richard Meruelo last year washing windows shortly after filing BK as a real estate developer ......
http://la.curbed.com/tags/meruelo-maddux-properties-inc
go figure ..... and no wonder MMPIQ is unloading properties at fire sale prices .... Richard's been unable to see through his front windows
Great observation ......
cuz the one year unpaid liabilities of MMPI to the secured creditors is $19 million and MMPI doesn't have $19 million so guess what ........ another 717 fire sale will take place, then another, then another ..... till the equity is kaput ....
MMPI was $157 million into 717 and will sell it for $110 million .... big loss ... major loss ... huge loss ..$47 mil goes poof ...
if i were a secured creditor i would continue to object and let the default interest rate accrue on my loan along with my legal fees ... all paid by the equity holders
the equity is last in line .... documented here nonetheless ... the lenders are going for Meruelo's throat and quite frankly have no intention to leave even a dime for Meruelo .... its in the dockets ... just ask enterprising ..its the one thing he hasn't highlighted for the board ..
Meruelo is in the fight of his life (that he well may lose) and the only battlefield for him is to squeeze the remaining equity and he's about to git it done ...
hey look if u got 80 big ones, go for it .... otherwise be ready for the ultimate (royal) flush to be played ..