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Condor Hospitality Trust Inc. Message Board

  • jgtaylo77 jgtaylo77 Jan 6, 2012 5:33 PM Flag

    Mini-Titanic (SPPR) has an Iceberg in Sight

    Fellow common shareholders,
    Beware of the impending disaster that is the Elztain IRSA takeover. Take time to look at the Elztain common shareholder "HELP" provided by IRSA to HT. The HT ownership has and had very little ownership (shares) of "their" family company. They sold the HT common shareholders OUT. This is a takeover and not much else. It is mgmt selling you down the river with share dilution from 20M to 80M for IRSA granting a $20M loan at 6.25% ($10 preferred shares with a dividend of $0.625 per year). What kind of divvy will be available for common shareholders. NADA ZIP
    This may stabilize the share price under a $1. But guarantees the company will BELONG to IRSA and only they will profit for the next FIVE YEARS.

    I'd rather take my chances at the company selling properties to generate capital. Bankrutcy might even be more preferable.
    I have 20k common and have lost at least half the current value. Lost a lot of opportunity with HT and got a small profit with a lot of risk.
    There is no risk here, mgmt gets paid and Elztain IRSA walks away with your money. IF SPPR has a Titanic gash in its side and is sinking then this is a MAYDAY call and its IRSA to the rescue (pay or die). If not (HT wasn't), its mgmt assuring their payday.
    Do your homework. Keep a barfbag handy.

    PS Elztain currently owns 15.6M of the 170M shares of HT. The same deal was issued to HT as SPPR. HT perhaps in an effort to maintain control, issued 100M new shares or at least 3 times the original base of 50M or so in 2009 or 2010? HT will not ever recover from this dilution.

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    • Doesn't the stock going up indicate that this is a good course of action? Or am I missing something.

    • There are 3 board members of SPPR that each own over 500,000 shares. They all voted for this deal. In fact all 8 directors voted for the deal and only one of them is a SPPR employee. Because of the new board structure 4 of those 8 will be giving up their board seats. So your management is doing it for themselves just doesn't wash. The truth is that these days banks are nearly impossible to work with. For every concession that they made to SPPR they extracted a pound of flesh. Trouble meeting that covenant? No problem we'll wave it for a fee. If you read the proxy statement closely you'll see that things got bad enough that 4 board members stepped up and bought out one of the banks loans. It is possible that the company could have continued liquidating itself and come out the otherside ok but every time they sold a property they had to pay down a loan and absorb a pre-payment penalty. The properties with the most equity are tied up in a master loan that in essence made them impossible to sell. It would have been nice if SPPR could have worked out a better deal but it was definitely not dealing from a position of strength.

    • get a clue moron....where do I start? HT is at a 52 week high and depending where you own it pays anywhere from a 4-6% dividend.....secondly, they bot ht at 3 and at 5.20 with that dividend is a return anyone would like to have in less than 2 years....and you would prefer a SPPR bankruptcy over this and you own the common? That right there says it all.

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