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.