Novation Companies Inc (fka NOVCQ)

[reddog3]

Former COB of $CMO now $FBRT readies move at Novation Co $NOVC Thesis on Request
Why has Whitney Tilson, Jeff Eberwein, Chuck Gillman & co investors at Board camouflaged 40M 35% Novation Companies Inc. $NOVC common? They are operating with MassMutual, Jefferies and Fortress/EJF Capital that hold at least 91M 80% of Common and the only Sr Debt to exit Ch 11. They will erase the only Debt when they make their move to create common shareholder value. Minority shareholders and Mr. Market must ask themselves: Will very accomplished investors all working together as common equity holders of at least 91M 80% of Novation Companies Inc. $NOVC common shares use the only Sr Debt which they also hold to flush Novation co $NOVC down the drain after years and millions of cash spent on Ch 11 Restructuring under Bankruptcy Law? Logic dictates Novation Companies Inc. $NOVC controlling common equity holders will announce something that is in their economic best interests as common shareholders not as Sr Debt Holders. The $NOVC Board of Directors and their SEC filings/actions Chairman of the Board Barry Igdaloff (JD, CPA 20 yrs on Dynex Capital $DX Board after restructuring $DX with Fortress, Wesley Edens), Howard Amster ex $DX investor per SEC filings owned over 5% of both $DX common and preferred) appear as agents for Note Holders Fortress, EJF Capital hidden behind CDOs (CDOs own 31.3M common 27% & only Sr Debt to exit Ch 11) and Mass Mutual sub-Barings & Jefferies $JEF. They have used FUD fear, uncertainty, and disinformation to buy time so Co CEOs and partners at Fortress can buy Fortress back from Softbank $SFTBY. They have used FUD to convert Board compensation into est 16M RSU at pennies and handed Fortress/EJF 31.3M NOVC common at below one penny (who knows the buyers of over 100M $NOVC common at pennies) https://globenewswire.com/news-release/2019/08/09/1900133/0/en/novation-companies-inc-executes-first-amendment-to-senior-secured-note-purchase-agreement.html
Perspective: I define in my thesis how Fortress/EJF Capital behind Taberna CDOs/Kodiak CDO I, Mass Mutual & sub-Barings & Jefferies all connected to $NOVC Board of Directors acting together can make est $5 Billion at Novation Companies Inc. $NOVC not as Sr Debt Holders BUT as Novation Companies Inc. $NOVC common equity holders. They own both but CPA firm http://boulaygroup.com outside auditor fails to disclose this fact in 10Ks). The basis of my thesis is these investors can and I believe will split $NOVC into 2 tax free companies one tax exempt MREIT the second a healthcare service provider with $730M NOLs. Billions as common equity holders vs Sr Debt per 10K. Sr Debt has fair market value in 10Ks of only $11M, Face Value $87M, Fortress/EJF paid almost nothing for CDO Service Rights. This is exactly what Fortress did in restructuring Newcastle Investment Corp $NCT into Drive Shack $DS which kept $160M NOLs after they spun out 3 tax exempt MREITs $SNR New Senior sold recently for $2.3B, $GCI and New Residential Investment Corp $NRZ. These controlling $NOVC common shareholders can create as at $NRZ hundreds of millions annually in cash flow in form of Management Fees and Dividends. This is also what $NOVC Board of Directors Chairman Barry Igdaloff & Howard Amster achieved at $DX Dynex Capital 2000-03 with Wesley Edens (COB of Capstead Mortgage now $FBRT which camouflaged Fortress ownership at $DX just like $NOVC camouflages Fortress ID behind Taberna CDOs I and II). Does this not make NOVC only Sr Debt to exit Ch 11 a ruse to create temporary GAAP Going Concern while they allocate 47M NOVC common at pennies and maybe buy many of the over 100M NOVC common traded just since $NOVC exit Ch 11.
One issue is Fortress last week terminated their very lucrative management agreement with New Residential Investment Group $NRZ. Was this part of a deal with Masa Son, CEO of Softbank to agree to SELL Fortress back to its principals? Alternatively, maybe the deal to sell Fortress is over and Fortress by terminating its $NRZ management agreement has paved the way to manage a new tax exempt MREIT like Novation Companies Inc. $NOVC former tax exempt MREIT Novastar Financial Inc. ex NYSE $NFI relaunched probably under new name? Has Fortress’ termination of their $NRZ management agreement paved the way to finally act like the Novation Companies Inc. $NOVC common equity holders they are and pave the way to split $NOVC into two tax free public companies like they have done many times before at similar companies. Fortress has been paid annually over $150M management fee by New Residential Investment Corp $NRZ plus dividends. The termination will result in Fortress cashing $400M termination fee and ending this very lucrative management agreement with $NRZ also changing NRZ name to Rithm Capital https://businesswire.com/news/home/20220617005477/en/New-Residential-Investment-Corp.-Announces-Internalization-and-Rebrand-to-Rithm-Capital-and-Declares-Second-Quarter-2022-Dividends
New Residential Investment Corp. Announces Internalization and Rebrand to Rithm Capital, and Declares Second Quarter 2022 Dividends June 17, 2022