I don't understand the incentives here.
What does Lone Star have to gain by dropping the lawsuit? What is KKD doing for them? Was KKD forcing them to operate and Lone Star begging cooper to take away the territory?
yes but SP cannot be happy about Lone Star type situations...
Remember back in July when the ST lawsuit was filed? We were all saying that this has got to be the death knell for KKD. Well, the proceedings went on and ST has been kept alive by a moratorium on royalty and refinancings. Most of us just got used to these cases going on and on and on, but now the Lone Star case actually got to a point where KKD had to settle!
What if ST also gets to that point? If Lone Star's asking for $10mm, I don't see a reason why ST shouldn't ask for 4x as much, $40mm, since they have 4x as many stores as Lone Star does. If KKD has to settle for, say, half of the amount ($20mm) that will take out most of the 1st lien facility.
The agreement that Cooper worked out with Europe's Bankers leave nothing to sucure other debt.
The bank can bring the default to th table in the AM if they wish.
They have all the assets and the only way would be to find new lenders amd pay more fees and in the process get wacked with large default payments and fees from current lenders.
The fact Cooper has choosen to work with stock holders in the dark bodes badly for him. He is and has been under the watch of the SEC who think he has been truthful in a number of his quote "saved" companies.
He resume is greatly overstated
<<Settle franchisee lawsuits
Settle shareholder lawsuits (for equity?)
Restructure loan (for equity>>
Don't the first three become moot if Kooper can bleed KKD of all assets, leaving a worthless shell?
Keep the regional rump, transfer it to SP along with whatever can be extracted from the rest of the territories?
This could explain SP's sanguine attitude.
If you are so smuggly sure of your interpretation and KNOW that you are right about the prognosis, why havn't you offerred your services as an arbitrator rather than arm waving on a Yahoo message board...is it the need for attention...and fear of finding out that you may be full of it?
What good is the arm waving if you can never substantiate or prove it?
Idiocy strikes again...douchebag: look....listen....read.
I gripe about the charades that go on here...the gross inaccuracies, the lying, cloud 9 conjecture, the BULL
Some posters are SO blatently ridiculous in their ..."accusations" (a.k.a fantasies)....and the unsubstantiated, undocumented, and never proven basis for such ...."accusations"....that they deserve to have their noses rubbed in the
But if you want to believe that my calling them on such bull
one more thing: the lenders have not made promises to livengood/tate/castevens/BOD in any direct or inderect way. No KZC-type winks and nods.
KKD as you said is being shredded. The lenders know this and are dissapointed. There's pretty much nothing left at this point other than intangible brand assets and real estate. If things get really really bad the lenders will force a liquidation and use ch.11 if they have to. they will also resort to disgorgement if they have to.
So far they're still willing to wait around while KKD pays off guarantees and, now, settles arbitration. Question: Does appointment of a trustee relate to JV claims in ch.11?
Whats for sure is the lenders have no incentive to provide additional cash under the current situation... you prediction that they will not seems like it's panning out.