I think it was le_chacal in post # 11298, that
also questioned the tax amounts, and what was, may be,
and was not, owing.
Please go over that post and I
would be interested in your usually knowledgable
comments. Tax is always more confusing than it should be
You are right - I retract my statement that
Friday's volume must be a mistake. I have looked at
Yahoo's daily volume numbers for the last 3 months.
Although Friday's 87,200 is less than half of the next
lowest volume, the volatility of PZN daily volume is
incredible, so it is not unreasonable that it would be so
There were several days below 300,000,
and one over 7 million. Also, volume has not reached
700,000 on any day in March to date.
volume simply reflects an absence of institutional/block
If we are to merge PZN & OPCO, then OPCO should
be required to bring something to the table. They
should be required to raise capital in a rights offering
to their shareholders before being allowed to merger
with PZN. No one should expect PZN investors to front
the total cost. If OPCO doesn't bring capital then
let them go bankrupt and PZN can take over PZN for
the debt it is owed and OPCO shareholders, preferred
included, should lose all equity. Another option would be
for PZN to buy all outstanding shares of OPCO for
what they are worth, next to nothing. This avenue
might be cheaper than dealing with an OPCO bankruptcy.
Anyone have any thoughts on this?
I agree that there is no inherent value in
keeping OPCO separate. I also agree that allowing OPCO
$723/bed profit would be excessive. That number was just
for illustration. All I am trying to do is to analyze
the situation carefully.
There is probably
general agreement that the current structure is failing
because OPCO is losing money. My concern with both the
Blackstone and PL merger proposals is that they appear to
keep OPCO investors whole, while letting PZN investors
absorb all the losses to date. It is not clear to me
that this is necessary or appropriate.
what I need to know is this: what does OPCO's balance
sheet look like? What does OPCO owe creditors other
than PZN, and how much have OPCO investors put into
From the PZN shareholder's point of view, an OPCO
bankruptcy should have the advantage of eliminating any
equity that OPCO investors have in OPCO. That leaves
only OPCO's creditors (excluding PZN) to be paid.