Hi Def Jeff: Re. Is it possible that the 8K was intentionally filed at 3pm Eastern on 12/31
I would think it was intentionally filed on 12/31 at 3:00PM so it comes down to whether it was designed with shareholder interest in mind. By law they have to file the default as a material event and the timing certainly adds confusion and skepticism. Considering TXP received the default notice from YA on 12/11 and the default date was 12/15.
drtelcomm posted that "it is a game of old fashioned brinkmanship. If Cornell does not blink on this and work with TXP they will never recoup their loan, simple as that. So they will have to work with TXP unless their goal is to lose money".
I'm not so sure it is a game of brinkmanship but agree that it would be in YA's best interest to work with TXP as there is a significant opportunity for YA to make significant money other than interest. The obligation to YA is $10,212,067 as of December 17, 2008, inclusive of accrued and unpaid interest. If something is in the works the 8K is a legal document that clearly defines YA debt unlike past deferral 8K's where you had to do the math. Whether that means anything I'm not sure.
The additional debt was taken on in May of 08 and Shores & Wong were discussing the merger possibilities around that time or shortly afterwards. So we know that Jerry Wong was aware of the debt before the formal notice of there intentions to merge were made in August. I am sure the current economic climate has not made things any easier so the timing of these 8K's may have something to do with the New Year being a better time frame to put something together. All guess work on my part and as an investor really dislike being put in the position of guessing & hope.
I agree with you as well that there is more to this story and for now it appears the only ones that know the answers are TXP, CIG & YA. All we can do for now is hope that the answers are beneficial to shareholders and that Shores as CEO has the best interest of shareholders in mind as it is his responsibility as a CEO.
AI
