Think about the overly contentious relationship between Lone Star and DAKP. LVM has been calling for a board change for awhile and has been calling for a proxy contest at the next annual meeting. I'm thinking that a game of chicken has been going on between them. LVM has been holding on as long as they can and management has been trying to shake them. Why would they want LVM around with their jobs in jeopardy? They wouldn't - it threatens their existence and their inflated compensation. So, what if they scare them off by having them think a Chp 11 filing is imminent - think about how bad that would make LVM look holding 11% of the company into bankruptcy... LVM without a doubt believe that management is stupid enough to run the company into BK. They are right, but let's give these guys the benefit of the doubt. Management would not want to turn this ship around and have LVM benefit at all - they hate them - they want to bury them. So, I'm sure they have been hoping they will sell and move on - once they do, they have the green light to restructure on their own terms outside of court or consider strategic alternatives which have been mentioned before. Like, selling. Mckenzie was being criticized by LVM that his package to sell was inflated - something like $3M with other future payments. With LVM out of the way these guys can structure a deal where they make a ton of money selling the company or by turning it around. Just my take. That being said, these guys definitely are idiots so a filing could really be imminent. But if they file, you bet Suntrust will own the entire company, so how does benefit DAKP management???? So, who is buying the shares LVM is dumping? DAKP buddies? Insiders? Retail?
In all reality, these guys keep having their forbearance agreement modified by Suntrust. How long can they keep it up before Suntrust says enough and forces BK. I know when their tranches on the majority of the debt is due but does any know when the next interest payment is due and for how much?
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