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Krispy Kreme Doughnuts, Inc. Message Board

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  • zipperdydoodah zipperdydoodah Jun 18, 2005 1:03 AM Flag

    Stephen Cooper's strategy

    The first condition is being waived by Silverpoint. They do not mind acquiring whole franchises. They just refuse to let their cash be paid out.

    The second thing is the problem. Why would a franchisee sell this thing for $1. There is no difference between that and letting the franchisee go bankrupt.

    KKD is offering sums like $50 thousand and the franchisees are holding out for sums like $1-5 million.

    If you could clean up all the franchisees at $50 thousand each (less than $1 million total) and then let it go bankrupt Silverpoint will wind up owning a MUCH better business.

    Zip

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    • <<The first condition is being waived by Silverpoint. They do not mind acquiring whole franchises. They just refuse to let their cash be paid out.>>

      ...wait maybe you have a point. question: say they acquire a franchisee, what is the that franchisee's creditor status vis-a-vis silver point assuming they are secured. is their debt secured only by the assets by which they were initially secured? (i.e. real estate and equipment) or do they now have a status equal to silver point. or even...equal to Wells Fargo Foothill's first lien (i.e. ever higher priority than SP).
      Or do the acquired franchisee's assets stay segregated.

      And if they do stay segragated, which would mean there's nothing to orry about, well, isn't some kind of trustee gonna have to block krispy from tpuching or selling off these assets or terminating leases? is it not a creditor commitee that will decide what to do with these collateral assets, as oposed to cooper? if so, why would cooper acquire them to execute what you claim he will execute if he's not in aa position to execute it?

 
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