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Corrections Corporation of America Message Board

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  • yieldseeker yieldseeker Feb 26, 2000 3:32 PM Flag


    You may be right, but I doubt it.

    OPCO is
    in default, so PZN clearly has no legal obligation
    to honor its contracts with OPCO. The only issue is
    whether the states that have contracts with OPCO must
    honor them. I doubt the states would have to do so. If
    OPCO goes into Chapter 11, PZN can buy out OPCO's
    contracts with the states at market value. If anyone else
    steps in to buy them that would be fine for PZN. Let
    someone else be the intermediary.

    The point is
    that PZN owns the prisons. The states have to deal
    with PZN unless they have an alternative facility
    ready to go, which is highly unlikely in most cases.
    OPCO in Chapter 11 would have no power.

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