you are correct. The tone of RJPrisions and his writing style is different from nycoffeeman. I think maybe we do him an injustice. His tone has changed some, but I now believe he is a true investor in PZN and not a shill.
Spoke to PZN mgt. this week. I was told that the can issue special dividend in form of stock; preferred stock; conv. debt Ect. as long as they give shareholders two alternatives. Any comments or feedback would be appreciated.
Also the Aug. 10th conference call should be lively. I want Doc Crans to submit to pay cut for his F--Up. $1.00 per year and NOOOOO repricing of ANY stock options. Also heard the OPCO's complete financials will be released in 10-Q and Michael Quinlin is now in charge in OPCO.
Its good to see that a few people like yourself have some useful info to share on this board. I have also heard that PZN has the option to make "payment in kind" although I think they will only do this as a last resort. I have heard from several sources that a "strategic partner" is being sought to take a large equity stake in Opco. I don't know how far this has progressed or who initiated the process, but the strategy certainly makes sense. This would help re-establish credibility and reduce concerns over conflict of interest. After all, these are the main issues. It would also provide comfort to their creditors. In order to access the capital markets, PZN will have to make some fundamental changes to their operating/management structure. They have no choice. Change will be forced upon them. Given the fundemental strength of PZN's business, I am optimistic that a solution to their problems will be found.
I don't believe the SD can be paid in common stock. It would need to be some combination of Cash, Preferred Stock, Debenture or Convertable Bond. Warrants could be included I believe. From an accounting standpoint, to "pay" it in common stock would be the equivalent of issuing a stock split, which effectively does nothing to the Balance Sheet. Remember, the Retained Earnings that were accumulated through 12/31/98 must be paid out. I seem to recall MK addressing this issue in an earlier post.
As far as OPCO transparancy goes, I thought that issue was addressed (ie they will open the books) successfully concurrent with the $100 million bond issue?
Regarding the new loc, I'm hearing that it's well on it's way to being fully syndicated. On the issue of whether Lehmann is required to absorb any remainder in-house, I've heard nothing.
It is my GUESS that either prior to or during the August cc Doc will have final information regarding the new loc and details of exactly how the SD will be paid along with a sweetener - probably some good news on CA. Of course, the issues will already have been decided prior to the cc and will therefore (good or bad) already be factored into the stock price.