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Corrections Corporation of America Message Board

  • justmyview justmyview Feb 25, 2000 10:10 PM Flag

    OPCO

    I don't want to spend my money to bail out OPCO
    either, however, if OPCO goes bankrupt we will never see
    all the money they currently owe PZN. I believe the
    very reason they are so cash strapped is because of
    what they owe PZN.

    Also, I don't believe PZN
    can remain a REIT if it merges with OPCO. Doesn't
    REIT status require a limitation as to the source of a
    REITs income? I believe PZN must contract the actual
    running of the prison business.

    Pacific appears
    to be the white knight we have been waiting for.
    They should just go ahead and start a proxy for
    control of PZN. They will get majority vote and just get
    rid of present mgt instead of trying to work with
    them.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Alert: Prison Realty Says Will Commence Talks With Pacific Life Regarding Possible Deal (mergers)
      (This is a

    • <EOM>

    • Buying super beaten down undervalued
      stocks
      and riding them up for 100-500% gains.

      So
      don't question bigman_herb....

      PZN will be at a
      bare minimum of $10 by
      July 2001. That is a 158%
      return plus any
      dividends for me from my large buy at
      $3 7/8.

      bigman_herb of course must state that
      it
      is his opinion.....Take care all. PZN is
      a super
      buy ---good luck.

    • I dont know what you are taking, but if it makes you this sure, I would like to have a themble full.

    • In the past several months, within the last almost year, they havnt had the money to pay advisors, or to buy any good politicans.

    • I agree with your basic points, but would like to
      question certain issues you raise.

      While it is true
      that OPCO's bankruptcy would mean PZN would never get
      anything back from OPCO, there is no way for PZN to
      salvage these debts by subsizing OPCO. PZN would be
      repaying itself with its own money. And since OPCO is
      obviously run by crooks, why deal with them?

      PZN
      can not remain a REIT if it merges with OPCO, but PZN
      does not have to remain a REIT in 2000. Furthermore,
      OPCO could go bankrupt and PZN could contract with
      another operator and continue on as a REIT
      itself.

      PZN should either let OPCO go bankrupt or merge on
      rational terms, which would mean that OPCO investors get
      close to nothing, because it is OPCO that is bankrupt.
      PZN has a liquidity problem, but it has a positve net
      value due to the real estate it owns. OPCO has only
      debts, no assets.

      The reason that PZN may not
      want to remain a REIT in 2000 is that there may be no
      real profits to pay taxes on anyway.

      You last
      point is key and I agree completely. The current
      management of both PZN and OPCO (same crooks) should be
      removed. Merging with OPCO in 2000 may provide a
      convenient legal structure, but OPCO investors should get
      nothing (except that PZN would be relieving them of their
      current negative net worth), and all current managers
      should be fired. (Maybe also jailed, but that's for the
      courts to decide.)

      • 2 Replies to yieldseeker
      • I agree with what you are saying. My point about
        OPCO would be that if they are forced into bankruptcy
        they would probably continue to operate under court
        supervision. I would not forsee a prompt Chapter 7
        liquidation. Of course we don't have enough info about OPCO to
        determine if they could eventually repay PZN or not.

        Your point about merging with OPCO is correct. In the
        merge A/P offset A/R and PZN would have control to
        replace current OPCO mgt. Accounts Receivable could be
        realized. The only negative would appear to be delution or
        addition of debt if there is any sizable debt other than
        PZN. There could be sizable debt other than PZN.

        Again, we wait for information that should have been
        available to us from the start.

      • i am in full accord with your message....we
        should be able to get rid of the directors who do not
        represent the stockholders' interests....if this calls for
        a proxy fight, then Pacific should be able to lead
        us to a proper conclusion, which would be to get rid
        of the bums and procure a proper BOD.....let OPCO go
        down.....PZN up.....

    • I am assuming they committed to the large fees as
      an additional reason for telling s/hs the deal must
      go through. Yes, I agree current mgt has no interest
      in what might be best for common shareholders. Its
      obvious from all their actions that they have put
      themselves first. They have structured everything so that
      the common shareholders has to pay dearly if things
      do not go their way. That is why we can not continue
      to work with present mgt. They must be replaced as
      soon as possible. They are an insider poison that must
      be purged as soon as possible.

    • What a drama!

      Lead character is a fake
      "doctor" with a name like Scrooge or Crabby Appleton - a
      man of distain, arrogance and ego, who positions
      himself perfectly for a tragic fall by alienating the
      analysts, the investors, the banks, the IB (no dougt) and
      probably the whole street.

      The evil empire is aptly
      carries the moniker of "Blackstone." The force is
      represented by "Peaceful Life". And naturally, in the current
      chapter the onerous offer that brings the equity to its
      knees is now followed by a ray of light that breathes
      life back into it.

      Surely this is not the end
      of the story of palace intrigue, hopes raised,
      dashed and raised again. Probably the BOD *will* refuse
      to consider the offer. That's the most dramatic
      scenario. Doc may suffer a Larry Flint-type attack that
      leaves him crippled and in pain as his empire crumbles
      around him. Blackstone may be revealed as the disguised
      princess by countering with an even sweeter offer than P.
      Life.

      We need a dramatist here to advise the investors.
      But seriously, I believe this makes the future of PZN
      much more tenable for LT investors who are still here.
      This drama really tests the patience and serenity of
      those people.

      So what does the stock do Monday?
      And how do we best fuel the momentum toward the
      Pacific Life deal? (Or will there be other, better ones?)

 
CXW
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