Consider the involvement of a guy we seldom talk about, Neil Augustine, of Rothschild, Inc. He was hired to help Blockbuster find some solutions to their money problems in mid Feb. 2010. He was going to help with a restructuring of the unsecured notes, or find a strategic partner, and as a last result sell the company for shareholders. Highly paid guy.
Having failed at all his other options he was the guy that ran the auction in Cadwalader’s offices. He was paid about two million for his auctioneer duties. He was presumably the person responsible for recommending the decision to select the Stalking Horse Bid. His job was as a financial advisor to the Board, after all.
I propose that a guy tasked with selling the company would make sure he knew the real market value of every asset the company owns. And Rothschild is a heavyweight in M&A as well as restructuring, so they have the people to correctly value business operations and assets, like intellectual property. Therefore, Neil has no excuse for advising Blockbuster to accept a very low Stalking Horse Bid. That is, unless the assets being sold are subject to a pre arraigned merger, or not really that much is being sold. As well, he was on commission for much of his compensation, so a low sale price costs him large.
He also ought to be conscious of getting value for the shareholders or creditors, Rothschild’s reputation is at stake. How would it look if he advised the board to take five or ten percent of what the assets are really valued at, doesn’t make sense.
Rothschild is a worldwide company, there is no reason Neil Augustine could not have sold the company for enough to satify the debt. I don't believe Blockbuster ever wanted to be sold. They wanted to merge with another company or companies.
Really his involvement has been suspicious from way back. He should have been the party that would have convinced the Board and the 2012’s to get together on a swap of debt for equity. This would have pushed the maturity on the 2014 notes out to October of 2014, and given the company a chance to renegotiate the interest in a much more favorable interest environment. That’s what his expertise really is, getting parties to see the logic of a good deal. And a good deal it would have been for everyone involved.
If you want to know who he works for just do a Google search on: Rothschild Group
Here is what they say about themselves:
“Rothschild is one of the world’s largest independent financial advisory groups, employing approximately 2,800 people in 40 countries around the world.”
I think you are missing the whole point of this thread. I'm not blaming Icahn, Keyes, the BOD, Rothschild, or Neil A. I believe that Keyes was telling the truth when he said Rocky 10.
I also think the money spent on Rothschild was likely a good use of Shareholders funds and it will pay off for shareholders. I guess it's really you that is laying blame on these guys, you're saying they let their shareholders down, right?
It might have been nice if they had shared a lttle more of their plan with the investment community. But I guess they really have the right to keep their mouth closed if it seems important to them. And as long as the shareholders win in the end Keyes will not have repercussions.
People are wondering why Dish is operating our Digital Assets when they thought all this is part of the Trust. Whether they are in the Trust or not they won't do anyone any good unless they are operated. BB liquidating is not going to operate Assets sold to Dish while it is still in court, but the fact that Dish is tells you that these are valuable assets. Why did Dish need our assets if they are valueless, and if they are valuable why didn't Neil Augustine get a good price for them. Couldn't Dish do on their own what they are beginning now with Blockbuster's VOD service.
In my opinion Neil Augustine could easily have aquired a buyer for Blockbuster's shareholders. He was instructed not to by the guys that hired him in my opinion. Although Icahn Left the Board before Rothschild was hired in 2010, he was there when they hired Rothschild in March of 2009. I think they crafted this complex plan to merge with another company in 2009 or before, they had NOLs galore and some good relationships. They are a attractive candidate for a profitable company to merge with, or at least a target for aquisition.
Icahn set this all up, along with Keyes, and Rod McDonald who is probably still working with the shell. Keyes, is probably still with Charlie Ergen, acting as a special advisor.
Icahn can't steal the company without buying the shares. Everything will be known in time and his finger prints are all over what has happened. We just have to wait till we get out of court.
so billy whatever happened to all them bidders you and the laughingstock*tm had lined up that were going to bid three billion ?? oops you conveniently gloss over the fact that you boys made up them bidders they only existed in your whacked out minds billy is it true that your max education is from del mar hs ?? how is gaylord ?? LMBO !!!!!!
There was way too much indication of value in mid 2010 for management to steal the company from Shareholders.
I think it's great that Dish is starting to make moves with the VOD segment. I also think there is a relationship between Blockbusters VOD and Motorola, Google, Verizon, and possibly even Comcast. Those ads in 2010 were really impressive, full page ads in the San Jose Mercury-News, and probably all over the nation. The name Blockbuster was the central theme of the ad. Even the word DroidX was not as prominent as Blockbuster on the bright Blockbuster Blue Droid X screen. I don't remember Dish's name anywhere on the ad but no other company was as prominent as the partner Blockbuster. Then there was a whole series of very well done Television ads for Verizon, Motorola's Droid and Blockbuster. Big money was spent by all those partners, and Blockbuster was the feature of those too.
Then BB went silent after the failed shareholder vote, and soon filed for BK.
If Icahn was going to collude with the Board to steal this company from the share holders, these ads would never have featured Blockbuster. There is no way he would have let the world know that big powerful companies saw promise in partnering with Blockbuster, and Keyes would not have spent the first have of 2010 telling shareholders this company would be the Rocky 10 of movie rental companies after the transformation.
Keyes was very optimistic, he had lots of options. I remember one interview where he said something like: "Of course I would rather not go to court but that is one of the options, we're working closely with our creditors to find a solution“.
Remember the Lyme Regis lawsuit, it's a blue print for a shareholder action against the board and Ichan. All you have to do is buy the shares to take part in the payoff.
Not sure about all this bill, as do many others I'm just looking for this to end soon. All we have is speculation really but at the very least we have confirmation of what we knew all along and that is Dish was able to obtain whatever it is they have for substantially lower than book value according to their CFO. It sounds as if though there are still missing documents that haven't been made available yet, this schedule 1.1D which is supposed to spell what all was involved in the asset transfer?
In any case though, they are running on fumes. With no assets, income and the one employee they must be close to 0 now.
so you say rothschild should have sold the cumpany for mor than the debt ?? so where were all of them bidders that the laughingstock*tm promised with three billion burning a hole in their pockets ?? if just one of them had existed in mor than the great ones whacked out mind you wouldnt be whining about the result almost two years later.