They made an investment in an equity that failed.
If they had succeeded, I don't think they'd be
sending checks to the PZN common shareholders to share
their wealth with us!
This is one of the main
problems with the deal previously accepted by the PZN
board- they want to make all the OPCO equity holders
whole at the expense of the downtrodden PZN common
shareholders. That's NOT our responsibility! And it is a
violation of the Board's fiduciary responsibility to
us.
NOT moving against the lessee who has failed to pay
the rents due is the main reason PZN is in this mess,
along with the previous transfer of monies to make
their last payments. Its time to recognize that there
ARE going to be losers in this situation, and with
Pacific coming forward it is finally not the PZN common
shareholder who is guaranteed to get the enema.
PZN
should absorb OPCO for the minumum amount it can
negoitiate or legally require or pick up in an OPCO
bankruptcy reorganization. There is absolutely NO reason to
do this merger on unfavorable terms to the PZN
common shareholders.
It is not a tough issue at
all; it is absolutely clearcut. As long as those
determining what actually happens recognize to whom they owe
their proper fiduciary responsibility.