Breaking info:
As you know I emailed Michael Minnaugh earlier this week and he indicated that CORS would be putting out an 8K filing shortly, probably next week. A bit more digging on my part got him to disclose that we have approx. 35mill in cash and 400mill in debt.
Therefore A<L.
On paper...NOT GOOD!
But, what was also disclosed is that this debt is "Trust Preferred" debt. A google search of Corus Bankshares and Trust Preferred Debt show's us who loaned CORS this cash and that's where this gets interesting.....
I quote an email from Billiam:
"So, who is Mr. Big? The finding of $400MM in debt eliminates everyone except one, Wilmington Trust. On their website their claim to fame is "asset preservation". They are doing just that. If CORS had declared ch.11 then NOLS would stay with the company and Trust Preferred Debt would be adjusted downward or wiped out. If they declared ch. 7 then all assets would be liquidated and since the company is no longer in business the NOLS would vanish. Either way Wilmington Trust would take a severe blow to their loan to CORS. However, by buying the company on the open market (for say $10MM-$20MM) and gaining controlling interest before FDIC seizure gave them the power to say no BK. There was one day in August when 40MM shares traded hands. That is when I first noticed CORS. So, if CORS merges into Wilmington they get cash, NOLS, and real estate. Probably close to their loan value of $400MM. That is what they are doing. They are preserving their assets. The biggest piece of the puzzle is no BK. Now we know that A<L. Who in their right mind would not declare BK except for the reasons I have explained.
TO SUMMARIZE:
1. A<L with the addition of $400MM Trust Liabilities.
2. Trust Liabilities can only be sold by the lender not the borrower.
3. Michael Minnaugh is our enemy. Illegal information. Violation of SEC rule. 8K will probably be all bad. They want your shares!!!
4. Wilmington Trust is Mr. Big. They own the Trust Liabilities. No one else would want CORS with $400MM in debt.
5. No BK why? Because that insures Wilmington will get all assets and NOLS. No other way for that to happen. That is the best way for Wilmington to protect their assets.
6. We will merge into Wilmington Trust.
END QUOTE :)
So there you have it. We think we've found Mr. Big
Very interested in hearing the thoughts of the board.
AI
