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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
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.
Good posting on PZN. I also heard the a strategic
partner is being discussed. I bet it's Sodexdo, as they
are large shareholders of both PZN and OPCO. My guess
is that they should have stepped up as an OPCO
shareholder any contributed additional cash. By not doing so,
they shoot themselves in the foot. I think there
looking more closely at repairing the problem. If another
partner comes in, Doc will be on his way out.
Even though Doc is feeling the pain, he still stands
to collect $4,000,000 per year in PZN dividends plus
his salary. His F--up should be more
Regarding lawsuits, AIG Insurance is paying the defense. No
impact to earnigs. No expected payout. Just a bunch of
attorneys billing hours. Only in America.
comments are welcome. Awaiting PZN recovery.
Legg Mason issued a two-page updated report on
the current status of PZN and its current financial
state. This report was based on a meeting they held with
Doc Crants on 6/25/99. Many of the issues and topics
of speculation discussed on this message board are
mentioned in this report back up by real numbers. I would
characterize the tone of the report as "cautiously
optimistic". I am a PZN stockholder and found the report
extremely informative. I would highly recommend that all
PZN stockholders review this report - it is very
interesting and informative. I think it will ease many fears.
The two-page report is titled "PZN: The View From
Nashville" and can be purchased for $10 over the Internet at
the following website:
Happy reading everyone !!!!
I think of Opco as the spinket that turns on the
cash flow since al lthe leases of Pzn come through
Opco. I was under the impression that Opco was to be
earnings neutral for 5 years. What major investor would
buy into a company with no earning. If Doc renigs on
this issue I will be first in line on the law suit.
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
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.