addressed many times on this message board and also by PZN itself. The distributions necessary to qualify for REIT status can be paid in cash or in securities, though the securities cannot be common stock of the issuer itself. Thus, PZN could not maintain REIT status merely by splitting the already-woefully low-priced common stock. However, PZN could easily issue preferred stock of any sort so as to satisfy the REIT distribution requirement.
As to bankruptcy, there is the little matter of the $1 billion plus of bank debt that PZN owes. Servicing the debt, and even paying it back, should be a piece of cake, UNLESS there's something more worse going on from an operational standpoint than the company has disclosed.
You and everone will come to learn there is a lot in the closet that hasnt come out yet, Do you really think Doc, and baby Doc was kicked out, Thank long and hard, they know, Or Doc knows this horse has been rode as far as it can be rode. There is nonthing left to do but shoot it in the head.
Not only does bankruptcy solve the large debt, It also some what settles a lot of the pending lawsuits, reguardless if the lawsuits win or not it still hurts the company to the point their creditability, is ruined.
It was said sometime back , I dont remember who said it, that this company did what it was designed to do, make a lot of people a lot of money fast, then fizzle out. I believe that is the case.
The employees at the PZN operated prisons were promised a raise, they didn't receive that raise, so they all are pissed,PZN even went as far as to tell the employees , there will be no raise.
There debt has exceded everones predictions, low numbers on filled beds. The numbers are getting even lower as contracts come up to be renewed.In my opinion it was a political scam from day one. There may be a lot of heads roll before its over.
You can't work for the company or you would know management never tells its employees anything. Even though i would not be the least bit surprised if we did not get a raise, that would not even take place until April. I don't agree with much of anything you had to say in this message. However I do believe that greed was the companies downfall. And I do agree that Doc, if he is the financial wizard he is suppose to be, saw the writing on the wall and made sure he lost little from the venture. I never was a big admirer of Doc. I felt he was to arrogant, apparently he has proved me right. As an employee, along with many others, I have lost considerbly due to Doc's greed. The biggest loss is pride in the company I work for, their credibility, and the truth in knowing that CCA's philosophy on caring for their employees were empty words.