Let me help fill in some gaps in case you don't know this or haven't figured it out on your own. this is the true definition of conflicted and its why i continue to bash on jpm so hard every chance i get. trustees simply shouldn't act this way. pxd got caught lying and they'll be exposed soon enough. we all know the story. now we have to make sure we set a trap for the dumbasses at jpm. i REALLY want those guys to trip and hit their heads hard. you should too.
this is pretty much how it went down. visualize a couple of silk suited, manicured jpm execs talking over lunch:
"ok. here's the plan. we'll loan the trust some money under the guise they need opoerating capital, but we'll secure the loan with their assets, and then we'll pay our legal bills that are accruing since we're involved in a lawsuit defending ourselves (despite the fact it was the unitholders of the trust that sued us for breach). hey, the indenture says we can indemnify ourselves against such expenses so let's do it. beautiful! yeah!! that's the plan. let's go with it.
bunky? scooter? write a check.... i'll be in the steam room."
getting the picture? Most of the draws jpm has made on OUR line have been used to pay THEIR legal expenses to the tune of several 100's of 1000's a month. it's usually between 250k and 350k. do the math and tell me how long 3 mil is gonna last.
Since pxd is confiscating all of our production income from the 4 wells off Louisiana (WD61) as well as the Midway, it won't be long before jpm will have sucked the line dry because of ongoing legal fees. meanwhile pxd continues to hog the income and hide production.
What choice will jpm make when the account tips zero? do they fire a shot at pxd forcing them to up some of the income or do they try and foreclose on our properties? Since the previous wolf in sheeps clothing "settlement" with jpm (and all the terms contained in it) was denied, the $3 million secured note reverted back to a demand note which can be called at any time. there was a proposed 12/31/08 maturity on all principal and interest. where's it stand now?
i mean to tell you THIS is the true definition of "conflicted" and it pisses me off in case you couldn't tell.
i hope the Judge who is planning to testify is loading up his guns about now and if i were him, i'd be laughing at how easy this is gonna be to rip jpm a new one.
also - the note was funded and carried by jpm's energy loan dept.. the SAME dept that has a $1.5 billion dollar unsecured line of credit issued to guess who? RIGHTO! PXD, of course.
if jpm gets ballsy and actually makes an attempt to steal our assets, they'll have to give 60 days notice. if this happens do not panic. as a reminder, the plaintiffs have a motion for temporary injunction pending with the Court that the Judge has never ruled on if my memory serves me.
so we could have another standoff hearing coming up shortly. hopefully, the judge will continue course and issue the injunction in our favor thus stopping jpm cold in their tracks. i also hope she issues a public admonishment to stop this attempted thievery and/or a contempt citation vs jpm and MU personally because they're proving to be real assholes.
it's just too funny. they just keep pissing her off with keystone cops style antics and she's been standing there waiting for them - every time. :)
thank you, ma'am.
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