Dear dontbettheball, In October 1998, Star Buffet entered into a $20,000,000 syndicated financing facility (see details in Star Buffet's 10-K, 10-Q, or 8-K). This facility permitted the repurchase of a specified amount of Star Buffet common stock. All repurchases of common stock permitted under the agreement were completed in 1999.
Although the Board of Directors of Star Buffet has authorized further stock repurchases and there is availability under the revolver, the bank syndicate has not permitted further purchases while the loan remains outstanding. For you information these facts have been disclosed in previously released press releases and covered in quarterly conference calls.
I'm confused. You say strz has achieved loans to repurchase common stock. But Yahoo says the only insider stock bought was purchased by wheaton AS HIS OWN PERSONAL STOCK (using loan money to buy stock for himself)?????????
Has the bank group approved the loans to the CEO? And if they did, wouldn't they just as readily approve direct stock purchases? If the banks have no control over loans to officers and Wheaton is doing this in lieu of direct company repurchases then I apologize.