Well guys this waiting on news is certainly taxing to say the least. Logic dictates at least to me that at a minimum if TXP is in default an 8K has to be filed. This 8K should have been filed last Friday IMO. Where we have not heard or seen anything I can only conclude there is something happening or I would have expected YA to put the hammer down and declare default and enforce the 8K filing. So, what is happening Shores?
If there is to be another extension I am surprised that we didn't see an 8K filed Friday or yesterday. IMO, an extension would require another 8K filed.
I suppose a couple of things could be happening here.
1. TXP renegotiating terms with YA and an extension to be filed at some point.
2. Something is happening with respect to milestones being met or financing or capitalizing TXP or both TXP & CIG for the merger to go forward.
I still believe that it is in YA's interest for a merger and see TXP/CIG put themselves on a firm financial footing simply because and IMO, YA has significant incentive if TXP & CIG are merged. If I recall YA starts with 9.6M shares and 17M warrants @ .20 if TXP meets a milestone. I would also think that it would take YA some time to dispose of all the shares it would take to satisfy TXP CD obligations if TXP goes into default so I view this as one more reason why it would be in YAs interest to see the merger consummated. The $5M ONT sales milestone in my view is a reasonable and an achievable benchmark maybe not in 2008 but certainly in 2009. My assumption is that YA looks at their portfolio very carefully, evaluates and knows what companies in their portfolio could deliver substantial returns, above and beyond interest payments and in reasonable time frames. Frankly I think TXP/CIG would be one of those companies that could deliver significant returns for YA over the next few years.
Goes without saying it would certainly release investor tension if TXP announced a $5m ONT deal now. However I would think that it is possible that many companies would wait until the new year before booking expenses. I also would not totally discount some form of alternative financing other than YA if the combined companies product portfolio is as valuable as I believe.
No filings plus no news at least fuels some speculation that something positive may be in the works. If this is not the case I would have thought that we would hear something negative by now. At least the merger news remains on the CIG website and no news doesn't necessarily mean bad news.
Hey guys, I just want to say it has been enjoyable reading everyone's posts and wish you all a very joyous holiday season.
jmack
AI
