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.
The play here is .........
that it looks like a seriously mean poker game ....
right now Meruelo has called the game .... and its a minimum ante of $80,000 to sit at the table ...
someone calc'd a minimum of approximately 450,000 shares of MMPI are needed to guarantee you'll qualify on a prorata basis to put up the minimum $50,000 in the NE rights offering outlined in the Plan of Reorganization submitted by Richard Meruelo ......
so if you take 450,000 shares at 7 cents that'll cost you $31,000 and then you'll need to pay $50,000 in the rights offering to protect your equity position ... which then takes you to $80,000 ..... or the equivalent of 20 cents per share
you could otherwise take your chances, roll the dice, buy less than 450,000 shares of MMPI and hope your shares dont get cancelled as provided for in the POR ...
this Meruelo guy is just not a very nice poker player .....
Mr. Taylor and TAM continue to strongly support
the current management team. Mr. Taylor and TAM will continue to have discussions with management, other shareholders, and interested parties ...
this came from Steve's own filing ....... post BK
Steve Taylor will vote in favor of current management and that's a good thing ....... as
he own's a boatload of MMPI shares and wants to realize the underlying value .... and so therefore he has no interest in allowing anyone other than Meruelo get him out of the mess that Meruelo created ......
Taylor will not vote in favor of a BK equity committee or any plans submitted by such committee ..
and just so im clear here ... Taylor believes there's much more equity in MMPI than a nickel ....
love back to you too ...
this board is too funny .....
rah rah rah .....
shish cum bah ....
may we all fall in love ....
with the one that flys above ...
and may we always stay away .....
from the one that might create a melee .....
look, i appreciate the sentiment of the board to be proactive but you only have so many tickets that can be punched and forming an equity committee for MMPI's BK proceeding shouldn't be one of them IMO ......
look, there's some good news with MMPI ... the sale of 717 Ninth St. is set to close this Friday ..... now that's a paday worth waiting for ...
You're not done buying ????
that's too funny ...... cuz it doesn't look like anyone's began buying ...
Shares traded today = 9,500 for a whopping $665 total value ...
did you say something about a payday?? I didn't quite understand the reference .......
anyways if you're using money from your paycheck to buy MMPI stock be sure to save a lil of the paycheck for gas money .... cuz gas prices are going up faster than the price of MMPI's stock
and the appointment of a BK equity committee is not going to be a catalyst that helps the price of MMPI's
MMPI's shareholder voice is well represented ........ in the bankruptcy case .....
Meruelo owns 46%
Maddux owns 5%
Taylor owns 14%
Meruelo and Maddux have signed every motion and order in the BK proceeding and have submitted the POR ...... they also are approving every setllement agreement reached
Taylor has submitted documents in writing that he fully supports Meruelo and Maddux
those of you on this board that think an equity committee is necessary and cite other BK cases fail to draw a contrast in the facts .... the cases cited did not involve DIP management that had this level of equity ownership ..... and they'll have veto power over all committee actions ....
for all intents and purposes Meruelo owns this DOG (no longer a puppy) and all other equity holders are just along for the ride ......
no wonder MMPI stock price is stuck near a nickel
that is a waste of friggin time and MMPI equity ...
IMO ..
boys ... time to get over it and stop wasting your time and MMPI's equity ...
get over being RAMBO and be smart ..... Richard (Dick for some of you) owns this puppy .... you are just along for the ride ......
Appraisals are in
Has anyone seen the appraisials that have come in from Grubb and Ellis ..... the appraisals were requested on five unencumbered pieces ..... i saw three of them ...... but didn't see the other two.. will post a lil more info after i save the info...
Also ...... the BK judge has granted an expeditied hearing and scheduled it for tomorrow (Mon Apr 19) on the 717 Ninth St transaction ....
IMO, that's a done deal ... it will be signed, sealed and delivered before the end of the month
717 will be a significant loss but a major step
the sale of 717 Ninth will generate a BIG loss .... MMPI is at least $150 million into the property ....
but it should generate net cash in excess of $10 million by my calcs .... which btw was the amount of cash proposed to be raised by the NE rights offering
here's my opinion of the transaction ...
This is just HUGE for MMPI's recovery from BK
the sale of 717 Ninth is a major step to recovery and may just be the kingpin leading to a recovery..... and to equity not being wiped out
They're cutting their losses and ...... management can now redirect its energy to all the other properties .....
This is a buyable MMPI moment based on this news
Divide & Conquer - $86,000,000 (Big News)
MMPI has reached an agreement with Canpartners to settle another $86,000,000 in debt ....
MMPI is in contract to sell 717 Ninth Street for $110,000,000 to Watermarke Properties Inc or its assignee to close before the end of April .... the settlement agreement also frees up the Chinatown properties .....
The dominoes are falling and soon enough the other banks will fall in line ..... divide & conquer
And Taylor makes three and 2/3 ......
Please explain the 1/2, 2/3 rule again as it relates to MMPI ...
How do you equate equity dollars vs. the number of votes ... isn't it the same number
when you add Taylor the total exceeds 2/3 ..... am i adding up the numbers wrong here
so the insider equity committee is 1 non independent vote out of 4 remaining ... good luck finding 4 votes aginst the plan
besides how do you think Meruelo gained control of all the real estate anyways .... it was an inside game and his boys were on the inside ....
not interested in wasting my time and MMPI's money trying to form an equity committee
Stop being N O S E Y !!! .... YIKES!
This is either too sarcastically funny or simply sad ... not sure which .....
from marayatano's profile (check it out for yourself)
=======================================================
Why are you looking at my profile? Stop being N O S E Y !!!
Location: Anywhere so long as you are not near me.
Interests/Hobbies: At the risk of being banned, I must withhold that information
===========================================================
not my kind of sarcasm and, imo, reads like a snotty little girl
anyways .... the equity committee will be owned by RM if he only needs to get 1 out of the other 4 biggest equity holders ..... and why would the other four biggies oppose ... gimme me a break boys and girls ... MMPI is for adults only ...
The equity committee has already spoken ...
Richard Meruelo and John Maddux together own over 50% and have proposed the POR .... imo, the committee has spoken ...
they can't be excluded from a committee of equity owners and have effective veto power by virture of their controlling ownership percentages .... and that's not counting Taylor's 15% ...
and besides Richard Meruelo, by my calculations, is hard money in for $40,000,000 ...... so he should have the biggest voice in the POR ...
any effort to form a committee would be a waste of time in my opinion and would only result in additional legal fees to be paid out of equity ...
dont think im interested, but like the proactive posture of the shareholder from Texas ...... if he comes out to Cali we should all take a tour of the MMPI properties together ... now i could go for that committee ..... the MMPI equity "touring" committee
Divide and Conquer is in play ....
MMPI reached a settlement agrrement with the Stanford Group last week on debt of $1,950,000.....
the settlement terms - 4% retroactive to Jan 2009 ... legal fees reimbursed capped at maximum of $35,000 with the debt due 3 years after approval from the BK judge
as important (i think) the agreement states Stanford's secured claim is considered impaired and Stanford must vote in favor of POR
i thought enterprising investor was going to get back with this board about the implications of the settlements with secured creditors agreeing to be considered as impaired vs. the objecting banks being treated as fully secured
i believe this means they get to vote with the unsecured creditors and will vote in favor of the POR improving the likelihood of the POR getting approved ...
the Divide and Conquer BK strategy may just work
That means Mazama has sold 14,200,000 shares
Mazama previously owned 15,253,000 shares of MMPI ....
do the math and it means they sold 14,200,000 shares
and are more likely to be selling the million shares remaining ...
There are no significant institutional holders in MMPI and won't be for the foreseeable future ...
FYI ...... Mazama sold right after the BK filing
MOR is MOR.....
Isn't the MOR cash basis? Does the MOR include the creditor's legal fees now accruing daily and does it include the interest accruing on the outstanding debt calc'd at the default rates of interest provided in the agreements, which even though negotiable in BK will be paid from equity ......
I think there's alot MOR then what is being reported in the MOR ...... and its going to come from equity ..
Be careful with the MOR report cuz there may just be .... less.
Enterprising is doing some great work here ...
Nice work on MMPI .....
Be sure to review MMPI's legal position regarding a "new value" plan as they are asserting it's not a "new value" plan as in BofA vs. La Salle ...... therefore it meets the the requirements of the BK code ... as they intend to pay all unsecured creditors ..... its in MMPI's filing with the court
for MMPI's reply to the objections filed March 31 see Doc 1232
Also, can you give this board your view on three things 1.) since each of 54 entities filed BK and there is a long list of unsecured creditors is MMPI also considered unsecured as to some/all of the separate entities 2) Does MMPI have effective control (majority vote) of the unsecured creditors committee 3.) does the agreement with CNB which i believe includes a provision that states CNB is unsecured and they'll vote in favor of the PORs submitted by MMPI therefore strengthening a vote in favor of the plan by unsecured creditors????
For the CNB settlement order see Doc 1247 signed by the Judge March 30th with reference to Doc 1083 from February ...
keep up the nice MMPI work .... looking forward to your reply
also have pdf copies of some of the docs
Divide and conquer - Part II
Big news last week for MMPI ....
MMPI reached a settlement with City National Bank (CNB) on $22,000,000 of debt at 3.25% interest only, all due January 2013 and CNB has agreed to vote in favor of all PORs by MMPI
it was approved and ordered by the JUDGE ....
IT IS ORDERED THAT:
1. The Motion is granted in its entirety, as supplemented through the Motion Supplement. The objections to the Motion filed by the County, BofA, the Committee, Legendary and EWB are overruled.
This is big news IMO and may lead to a domino effect where the creditors begin to fall one by one into settling with MMPI ... and then wah lah ..... no more legal fees
Divide and conquer .........
It may just work here .....
this could be the golden egg during this Easter season ...
Looks like "D" day tomorrow ....
here comes the judge ..... here comes the judge ..
so it's give the judge your best shot ..... cuz ..... it's time for a decision ....
and no matter what way the "D" breaks
just remember ....it ain't over .... till it's over .....
YIKES! more legal fees ... MMPI equity is going to attys
check this out
http://www.latimes.com/business/la-fi-tribune-fees30-2010mar30,0,6311045.story
that's right .......
i forgot .....Berkadia paid full price in BK court for Capmark's portfolio of loans ..... NOT!
any wonder ...... they have objected to the motion to extend exclusivity....
let's be clear .... Berkadia is pissed off big time at the reorg plan ...
and more clarity ... their very high priced legal guns are firing on all cylanders
and lil more clarity ..its not in support of MMPI equity
so Warren Buffett v. MMPI .....
Richard Meruelo may just find himself tossing pizza again at LA PIZZA LOCO .... anyone ever been to one? The Meruelo family owns them.
not sure i like ...
Not sure 'bout everyone else .... but im not sure i like being on the other side of a Warren Buffett bet ....
Just wondering why ........
Warren Buffet aka Berkadia is buying the MMPI debt at a discount and not the MMPI shares at a discount ....
maybe that's why .... he's one of the richest men in the entire WORLD ...
all hell is about to break loose if the bk judge denies the motion effective April "fools" day....
this is one complex BK case as there are approx 54 entities in a "joint" not "consoldated" filing .... which could lead to 54 entities receiving 54+ competing reorg plans .... KAOS ... time to "get smart" ..
April fools day it is......
looks like MMPI was granted an extension of time for exclusivity until April 1, 2010 ... with another court hearing scheduled for March 31 ..... be there or be square
luv being in the game too ....
but re only two objections ....
i think i counted 73 attorneys on the list wich means they all have at least two behind them ..that makes 210 attorneys billing $500 per hour ... or nearly a million a day
not good for the MMPI equity ...
and im not here to "lose" my capital ...so being in the game to win or "lose" doesn't work for me..
im here to win .... nothing else ...
i prefer to let everyone else "lose"
just the way i think ...
C'mon now ...... reread all of the court filings ...
.... you gotta be kidding ... two objections ??? .... what about BofA, Wells Fargo, PNL Pomona, East West Bank, Chinatrust Bank, California Bank & Trust, the Legendary "patent" attorney from Pasadena, etc. etc. etc.
everyone other than Richard Meruelo has objected ...including the quote you posted which is in objection to the plan.... BTW it came from a shareholder of MMPI ...
here's the sentence that precedes the paragraph you quoted
"..... objects because the Disclosure Statement describes an unconfirmable and impermissibly discriminatory plan, and the Disclosure Statement fails to articulate any good faith or business justification for such discrimination."
here's the last sentence of the filing ...
"Accordingly, .......respectfully requests that the Court deny the Debtor's request for approval of the First Amended Disclosure Statements."
The shareholder's objection basically argues against the dougiiee "squeeze" ever happening and the shareholder is spending his nickels in court to prevent the confirmation of the plan as submitted
I previously posted the name of the shareholder for this board to research ... its ..... Esmark, Inc.
this MMPI BK filing is a huge legal quagmire that is extremely expensive and adds substantial risk that MMPI may not make it out of BK court ..
just calling it like i see it
but what about Friday ......
all of the dockets led up to Friday .... here's what's in the dockets prior to Friday ... MMPI filed a plan, 100% of everyone else objected to the plan per the dockets .. no KUMBAYA going on in the dockets ...
so on Friday they (50 atty's) all showed up in court ...... all of it paid with MMPI equity .. you shoulda been there
there will be no dougem "squeeze" on Monday
BTW, who's manipulating the closing price of MMPI with 100 share buys on the close .... gimme a break ... does anyone think it might be dougiiee howser
still happening
Link this, link that ......
per your request
here you go mr. dougem
http://pacer.psc.uscourts.gov/index.html
time to be spending your nickels wisely
The official committee of unsecured creditors ....
here's what im talking about .... more fees paid with MMPI equity to help attorneys understand what the frick is going on in the case ... you gotta be kidding
BK may just put MMPI into the graveyard ...
PROPOSED EMPLOYMENT OF KGI
Scope of Emplovment
Pursuant to a Committee meeting convened on March 5, 2010, the Committee
seeks to employ KGI as its financial advisor in these cases. The Committee requires the assistance of KGI to render the following types of professional services:
1. Assisting the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors;
2. Assisting the Committee in reviewing and analyzing any chapter 11 plans and disclosure statements (in both these cases and the cases of 845 Flower and Chinatown), including, but not necessarily limited to, the Amended Plan, the Amended
Disclosure Statement, and the Flower Amended Plan and Disclosure Statement;
3. Assisting the Committee with respect to the financial ramifications of any proposed sales of any of the Debtors' assets;
4. Assisting the Committee with respect to the financial ramifications of any proposed financing or refinancing of any real property of any of the Debtors, 845 Flower and/or Chinatown;
5. Assisting the Committee's bankruptcy counsel with respect to any negotiations regarding any chapter 11 plan, disclosure statement and distributions to unsecured creditors;
6. Assisting the Committee's bankruptcy counsel with respect to
negotiating with holders of unsecured claims and to file objections to such claims, if and as is necessary;
7. Providing the Committee the appropriate financial analysis of the Debtors' financial statements and pro-forma budgets/projections;
8. Assisting the Committee and legal counsel in preparing or
responding to any disclosure statements, chapter 11 plans and/or motions to sell properties; and
9. Performing such other financial advisory services as may be required in the interests of the Committee and unsecured creditors.
B.
Terms of Employment and Compensation
The Committee proposes to employ KGI, effective as of March 5, 2010, at the expense of the Debtors' estates pursuant to 11 U.S.C. § 330 in accordance with the
terms and conditions set forth in this Application. The engagement shall continue unless either party gives five days' prior written notice of termination to the other party. Upon
any termination, any fees and expenses incurred prior to the date of termination remain due and owing. The fees charged by KGI for its professional services are based upon the time and labor required, the difficulty of the issues involved, the skill required to perform the financial advisory service properly, the preclusion of other employment, time limitations imposed by the circumstances and the experience and ability of KG!.
1 The Committee seeks to employ KGI on an hourly basis for its financial advisory services at the following rates prevailing as of the date of this Application and which are subject to periodic adjustment:
4 Type of Professional
5 Steven J. Green, President
6 Jay Maddox, Managing Director, Real Estate
7 Matt Covington, Managing Director, Fin. Restructuring
8 David Lauletta, Managing Consultant, Real Estate
9 Nicolas Long, Senior Consultant, Real Estate
10 Other KGI Consultants
11 Other Professionals
Current Hourly Rate
$595.00
$495.00
$495.00
$350.00
$250.00
$175.00-$225.00
$90.00-$150
Another $1 million day for MMPI ....
tomorrow's court session will consume another $1 million in professional fees .....with all of it going to attorneys and being paid by equity holders..... prep time, time to file motions, court appearance, and follow up appeals
here's the pre game look .......
Richard Meruelo submitting a plan with disclosures on one side....
and everyone else on the other side objecting vigorously ....
since they ain't going in holding hands singing together ... odds are not favorable for MMPI.....
and MMPI just spent another million of its equity
this is a legal nightmare ...... and where's that dougieee "squeeze" so I can peel off some MMPI shares
check out the next post for a motion for even more professional fees to be paid by the MMPI equity holders ..... this is getting a wee bit expensive now ..
and here's an example of a competing offer
and you can bet the equity holders got zippo .. nada . zilch
Extended Stay Inc., which tumbled into bankruptcy-court protection last June in the largest U.S. hotel bankruptcy ever, has accepted a reorganization plan proposed by an investor group led by Barry Sternlicht's Starwood Capital Group, according to people familiar with the matter.
The hotel chain, which owns 680 properties, had proposed a plan earlier this month that was backed by two investment firms, Centerbridge Partners LP and Paulson & Co. But Extended Stay's board has dropped support for that plan in favor of the one proposed by the Starwood group.
The Starwood investor group—including TPG and Five Mile Capital Partners LLC—is proposing to put in more than $600 million in new equity, the people said. The rival plan had proposed as much as a $450 million investment from Centerbridge and Paulson.
Late Monday, the company terminated its agreement with Centerbridge and Paulson, the people with knowledge of the matter said. Representatives of Starwood and Extended Stay declined to comment.
To be sure, the Starwood-led plan is still far from a done deal as Centerbridge and Paulson could increase their bid and other bidders also could emerge, the people said. And the plan still needs to be approved by the bankruptcy court.
The Starwood proposal also calls for some of the existing holders of Extended Stay's $4.1 billion first mortgage debt to continue holding their debt, known in financial circles as "rolling" their positions. Meantime, it would give some creditors the option to convert their claims into equity. The plan would give the Starwood group nearly the majority of the equity stake in the reorganized company.
The move by Starwood and other investors is another sign that savvy investors are looking to swoop in on distressed commercial properties as the capital markets begin to ease for big corporate and private borrowers. Starwood Capital, led by Mr. Sternlicht, best known for founding the W Hotel chain, has a $1 billion private-equity fund to buy distressed hotel assets and last year launched a real-estate investment trust to invest in commercial-property debt by raising $950 million in new capital.
The Extended Stay chain, whose properties cater to budget-conscious travelers, is being viewed as a major prize. It was acquired in 2007 by real-estate investor David Lichtenstein at the peak of the market in a highly leveraged $8 billion transaction. Besides the $4.1 billion first mortgage, the deal was funded with a $3 billion mezzanine, or junior, loan, which also was carved up into slices with different levels of risk and return. The company filed for bankruptcy protection in June.
The Starwood-led plan puts a higher value—nearly $4 billion—on Extended Stay than other estimates that have emerged during the process, according to people familiar with the situation. Upon its bankruptcy filing, the company estimated its value at $3.3 billion. The company's financial advisers have pegged its value to be about $2.8 billion to $3.6 billion.
"Your link is for a patent lawyer"
That tells everything about the lack of depth to your knowledge of MMPI
do not be the village idiot on MMPI .... you need to do your homework on the "patent" lawyer ......think Legendary investor ... and he's only one of the many vultures circling MMPI .. and he's going to end up with 3 or 4 of MMPI properties at 1/2 off prices ...
how many friggin hints do you need before you figure this out ... maybe you should read his declaration with the BK court
why not use the information superhighway to stay ahead of the game ..... the info is at your fingertips ..... all's you need to do .... is know how to get it ....
once you find it you'll sober up a bit on your view of MMPI
how quickly millions can disappear ....
dooooogie .......
I gave you link and you seem to have completely ignored it ...
here it is again ....
http://www.avvo.com/attorneys/91101-ca-surjit-soni-223098.html
check it out ... the guy is a VULTURE capitalist ...
MMPI is paying his legal team professional $$$$$ fees while he goes to BK court and makes motion after motion to take away the MMPI properties that you think MMPI own .... he's Legendary in the field ..... so not only will MMPI lose the properties, they'll pay his legal fees while he does it
get with the BK gig here dooooogie ... your equity is evaporating in legal fees .... time is not on your side
secondly ...i don't think you even understood the Supreme Court case i linked for you ....
here's the low down .... it goes like this .... Richard Meruelo cannot legally own MMPI after the BK process ....without allowing other vultures to submit a higher bid .... and the bid won't be friendly and aint going to go to current equity holders ....
you're in the dark dude ...turn some lights on
MMPI and the creditors aren't holding hands singing KUMBAYA as they walk into court to tell the judge they've reached an agreement ....every single creditor and some of your fellow shareholders have objected major big time and want nothing to do other than to bury Meruelo ...... and all of the legal fees are being paid with your so called equity ...
dont be the village idiot and ignore what's happening ... do you know who Esmark Inc is? go figure it out .... and fast
are there any attorneys in the house ...
this case is frigging complicated ....
im just a doc and did a lil surgery with the court docs and don't really have the experience or background to fully figure out what all the alternatives might be.....
please feel free to add any views or comments .... they're more than welcome at this stage ...
good luck to all....
Vulture capitalists vs. venture capitalists
you gotta be kidding dougie, you just quoted the facts of the LaSalle case as reason to buy/hold MMPI
c'mon dude .... its the DECISION you need to follow ... the decision in LaSalle reversed the lower courts
the LaSalle case clearly prohibits the equity rights offering of the MMPI plan .....so much for your MMPI "squeeze" theory
this case is about to be blown wide open when the BK court ends exclusivity ..... chaos will reign as the reorg plan is opened up for any and all vultures to submit competing plans ......... and Meruelo may just find himself on the outside looking in ....
the vulture capitalists not the venture capitalists are circling this rat .... and there won't be anything left when they're finished
check out the following link .... this guy controls a group that's about to get 3 or 4 of MMPIs properties
http://www.avvo.com/attorneys/91101-ca-surjit-soni-223098.html
the dougem "squeeze" is not permitted by law
from the United States Supreme Court
Held: A debtor’s prebankruptcy equity holders may not, over the objection of a senior class of impaired creditors, contribute new capital and receive ownership interests in the reorganized entity, when that opportunity is given exclusively to the old equity holders under a plan adopted without consideration of alternatives. The old equity holders are disqualified from participating in such a “new value” transaction by §1129(b)(2)(B)(ii), which in these circumstances bars a junior interest holder’s receipt of any property on account of his prior interest. Pp. 8—22.
I believe every secured creditor has objected to MMPI's plan of reorganization
here's a few links on this matter
http://www.law.cornell.edu/supct/html/97-1418.ZS.html
http://www.oyez.org/cases/1990-1999/1998/1998_97_1418
paid subscription required for this link
https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=38+J.+Marshall+L.+Rev.+61&srctype=smi&srcid=3B15&key=37d31ff516a0f932362c9ffcc1341a96
you are simply ignoring some basic but vey important facts ...
MMPI is in BK.
The court has jurisdiction and MMPI equity is last in line ..... think GM .... you post as if its business as usual..... for MMPI ...
far far far from it ....... defualt rates on some of the loans run as high as 25% and the county tax assessor is getting 18% on unpaid proprty taxes ....
there is major risk here .... and it's called a HUGE legal battle in the courts ...the BK court is not there to protect the equity holders ... just the opposite ... it's there to protect the creditors ... don't forget equity is last in line
if the BK court lets most of the value accrue to the creditors and then permits outside new equity to inject funds and take over the company .... game over ...... stop boasting about the inherit value and balance it with the HUGE risks of being in a BK legal battle with the best legal minds in the field ....
think of it this way ......
MMPI is now paying for lawyers to represent the creditors and they are extremely smart and very aggressive advocates on behalf of the creditors to get as much as they can and they could care less what is left over for Richard Meruelo or you .....
additionally, the opposing counsel sees the MMPI checkbook balance and know they've been given a blank check and can write themselves a check for as much as they want/need ..... resolution of this BK is not in their $$$ interest
great setup .... NOT!
The MMPI value proposition is declining by the hour ...
lastly, posting here has allowed this doc to better assess the true legal bind of MMPI and it looks like it could be a potentially fatal diagnosis ... thanks for assisting me by challenging me to belly up to your bar and prove it ......
ill post a few posts with links to some of the legal issues but highly recommend you emerse yourself in the court filings ASAP
good luck to all
do you really believe the BK laws.......
would allow ....
a debtor such as MMPI (with equity) to file BK, submit a reorg plan that crams down all of the lender's loans to 4% (interest only) payable in 5 or 7 years and then let the existing equity continue with their equity positions ....
if that were permitted every debtor would simply use the BK courts to rewrite their lending agreements, improve the value of their equity and then do business as usual (this would effectively create a legal subtrefuge to contract law)
its not permitted as a matter of BK law and the Supreme Court has ruled on it
existing equity is the most junior (last) position in BK court and takes 100% of all losses before any creditor takes a write down ....
new outside equity (not including Richard meruelo) will be allowed to submit competing reorg plans before this is over ..... and you can rest assured they ain't gunna submit a plan that'll give existing equity owners a nickel
now that i think about it, since you and I think there s/b some value ?? left over after making the creditors whole, instead of trading nickels bewteen us maybe we should form a group, put our nickels together and be ready to submit a competing plan ....
otherwise IMO we're on a ship with a pirate at the helm and we're in the brig and this ship just may get sunk ....
this one doesn't meet the "pay (not pass) it forward" test
dougie ..... seems like your watching the price of the stock and trying to draw legal conclusions which btw is very dangerous
instead you need to be reading the court transcripts and the court filings .... are those the links you're referring to?
look, here's what's been going on in court
if im a creditor and am asked to approve a plan of reorganization i wouldn't be interested in approving a NEW VALUE EQUITY plan which exclusively only allows Meruelo to offer $10,000,000 when maybe there's someone else that could and would offer to inject $50,000,000 or maybe $100,000,000.....so the court is about to open the flood gates here and let any & everyone submit a competing NEW VALUE EQUITY plan.... its coming ... get ready and be prepared for ALL existing shareholders to be wiped out
in fact every single creditor, through their very expensive but capable legal counsel, has plead this with the court ..and they've cited the Supreme Court case law that supports it
save your hubber friends some BK trouble and keep this one to yourself
if you really do have deep pockets, keep your nickels in them
What would I be backing down from
that's just a totally wierd post dougie poo....
if im a buyer then that makes you a seller ... if im telling people to be cautious there's a ton of risk
you telling people to buy/hold shares cuz there's so much VALUE means you're selling to them right? .. Hello ... anybody home
MMPI is totally caught in a legal quagmire where there have been 54 separate BK filings and they have to manage every single one and they are basically on the hook for 100% of all the legal fees including the creditors attorneys ..... NOT GOOD!
regardless of the value ...
there isn't a single creditor who's approved the plan and they all want Meruelo's head on a plate ..... some of the attorneys even quoted Claudius from Hamlet ... go figure
They're looking for blood in the streets of LA and they're taking aim at Meruelo ..... he's in a fierce battle
This is a game of dice and Richard Meruelo could lose control when the exclusivity period is terminated by the judge ... almost all of the creditors would like another owner to step in with a competing offer in excess of Meruelos .... but dont get your hopes up ... as they'll surely cancel your shares along with Richard Meruelos
How about the shark/vulture that purchased the EastWest Bank loans and are about to get relief from the stay and will immediately move to foreclose on the properties .... no equity there ..
the MMPI bankruptcy doesn't get much more complex .... please do not try to reduce owning MMPI(Q) shares to something as simple as a VALUE proposition .... its a VERY risky value proposition
and finally ..... what/which link are you interested in having me provide ..... WAMU(Q) was off 50% on Friday in spite of what looked like a favorable settlement
this stock is going to zero ... either with Meruelo's plan or with someone else's plan .......