You can't fix stupid ....
The unintended consequence of forming an OEC in BK ....... it fails to fully understand its fiduciary obligations to protect shareholder value ...... a three-card monte is (un)intentionally put into play ...... or it is simply stupid ...
The court received evidence from the insiders (RM) and CT that the equity in MMPI was approx $1.40 per share and the OEC confirmed the $1.40 value ... then the OEC, with its endorsement and vigorous legal positions in BK, caused the following to occur ...
all MMPI minority shareholders were required to sell at least 55% of their shares for 35 cents .....
so ..... here's the stupid math ....
minority shareholders owned 48% of MMPI or 43 million shares
the minority MMPI shares (in)vountarily sold had an equity value of $33 million ...
the minority MMPI shareholders received $8.3 million
the minority MMPI shareholders suffered a permanent loss in value of $24.7 million ....
the loss of $24.7 million by MMPI minority shareholders has a zero, zilch, nada chance of recovery ...
on top of that, the OEC, without objection, allowed the insider shareholders (RM) to get paid 30% more per share than the minority shareholders ....
and to top that off ... the OEC spent $4 million of MMPI equity for (non) professional fees to achieve that result ....
MMPI now has 55% owners in CT, 25% owners in RM and 11% owners in TIF or 91% owned by three shareholder groups ... in essence MMPI was transformed into a privately owned non publicly trading company ...
at the end of this three-card monte game .... CT et al has received $69 million in equity and paid $18 million .... and the minority shareholders are trapped in MMPI shares that barely publicly trade ... MMPI minority shareholders were losers all the way around based upon the OEC endorsed plan ...
Men with degrees from supposedly prestigious colleges mean nothing
you can't fix stupid ......
