If the institutions like the deal, they can have
it, I suppose. For me,
the prospect of $20 million
to current management, fees to everyone in sight,
and a bailout of CCA (with our money, of course) is
just too ghastly to for me to put a personal stamp of
approval on it. I know this is emotional, but the
combination of losing 80% of my investment AND getting
screwed at the same time is just too much.
<"My own conclusion is that based on the PZN
track record, there is no way the retail holders can
see the hidden traps laid for them. Institutions may
have more insight unless they just quietly unload and
just give up">
Exactly right. Given all the
sleazy tricks of current management, and the complexity
of everything they do, the retail shareholder is
much better off giving an implicit proxy to the
institutions. We can do that by voting NO. That does not mean
we want the deal to fail. It just means we want it
to pass IF AND ONLY IF it gets support from the
Regarding the posibility that the institutions are bailing
now, I do fear that, but I do not see enough liquidity
to allow them to do so. I am eager to see the June
30 filing for Dreman et al.
What is truly amazing is that Doc and company
have manuvered the company into this position, that
CCA gets away with witholding rent payments (maybe to
keep them away from litigants), and that PZN
shareholders face a "cash call" from a company that may or may
not be able to stay afloat. Fees to all, except you.
$20 mil to insiders who did not have to put up their
own money. What a farce! Would you put up new
capital, given the character of the people running this
operation? I sold when PL bailed, they obviously saw
something they did not like.
It means to shareholders:
"bent over or face
Personally I'd rather die
than being raped or being a vegetable for life.
But that is a question of self-estime and is personal
to each of us.
You made a case for a no win
situation in which I would hate to be in. That is why I
bailed some times ago. In the PZN game, whatever table
offering you play, you lose. The game is
The key point to watch now is if the price slide
slowly but surely. I would be very concerned by the
remaining institutions "quiet selling".
out the consequences of FAILING
TO PASS this
plan , you will change
your mind. It voids the
extension of credit by the senior
creditors and Chapter
7 liquidation will be
a distinct possibility.
no longer post on this subject.
still have 6300 shares that
will vote Yes.
Even if you are right in this post, what is
relevant is that the current board and the creditors are
electing the new board.
Creditor have put their neck on
the line and will fight for their beef only. The
current board just wants a bonus of $200MM and may be
have an hidden agenda to keep manipulating the co
under the cover of a new board.
This should be a
red flag to the shareholders as they are cut out of
the loop for voting the decision makers.
what has happen, only a deal like the PL deal is
acceptable to shareholders. Less than that and you take a
big chance with your money.
IMO this deal is
probably worst than the blackstone deal because of the new
"confict of interests" the election of the new board
Saying NO to the deal based on the mathematics of
At first, it appears to go against sound investment
logic. However in this unique case, I agree 100% that it
would make the most sense.
My own conclusion is
that based on the PZN track record, there is no way
the retail holders can see the hidden traps laid for
them. Institutions may have more insight unless they
just quietly unload and just give up (very possible.
PZN is not a good PR in any portofolio).
also always questioning "this deal or no deal". These
guys have ways to push any given deal that pleases
them before looking at anything else. Making the
little guy feel there is no choice and that they must
suck it up.
Besides, it fits in the scheme of
saying NO to anything presented by the current PZN Board
for principle. Rejecting that deal would be a win or
lose it all gamble that is certainly a best
alternative to a deal that is bleak at best.
another post it would appear that the current board has
control over who the new board will be and that new board
will select the officers. Same old sh*t. This is no
good. A deal like that leads nowhere given PZN
What kind of confidence can you get from people
nominating other people in a position in which they screwed
everything up to start with?
Only in sham companies do
you see the failures nominating other (failures) for
they own benefits. This is total non-sense and hints
things to come.
Disclosure: No position, just
opinions and using PZN as an investment educational tool.