The Aviary - Home of The Bird of Prey

[Bird of Prey]

Hi Tim,

I'll give it my best shot.


SITE made an offer to "buy back" several of it's note (bond) issues.
Several of the bond holders felt the offers were in violation of the rules set forth in the contracts and several different securities laws. They filed a lawsuit attempting to stop the proposed transaction from going forward.
Yesterday SITE decided to withdraw the offer. They also announced that they are not going to continue making "private offers" to it's "institutional" bondholders as well.

It seems to me that SITE was offering to turn their existing debt into convertible debt. I haven't read anything about this company, but on the surface it appears that the Note holders (at least) felt they were getting the short end of the stick (pun intended). Exchanging their notes (and their leverage) for stock apparently doesn't look like a good idea to them.

I agree with you, this doesn't look good to me either.


The Bird of Prey
http://www.investorshub.com/boards/board.asp?board_id=381