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gophilipgo

03/26/12 10:49 PM

#367544 RE: Large Green #367522

Why does everyone assume the "peek" that DIMEQ and TPS saw was some pot of gold? Using this logic, if it was a pot of gold, DIMEQ would have settled when they mediated right before the judge's negative ruling hearing because they got a peek then. That mediation ended in days. DIMEQ was essentially FORCED into settling because of the judge's ruling. The judge ruled in such a way that it would have been very difficult to overturn on appeal, and it would have taken years to get a ruling. The same thing happened with TPS. More than likely, they recognized that the fight would be very long, and their chances very slim due to the judge's opinion. Hence, they postured for as long as they could in order to get more.

There is no pot of gold. There is a new company with no debt and a massive amount of NOLs. DIMEQ and TPS simply recognize the potential there and decided it was more sensible to settle than to continue the fight--that's it, nothing more.