You're right - I was surly. Probably in reaction to the several posts questioning what I thought was pretty clear language (as well as nasty posts from different posters). I'll try to be more civil. Hopefully, others will too.
"You failed to note that it was in exhibit 10.1 and never quoted 12.3."
I said that it was in section 12.3 and could be found at the ALD website. I didn't realize that I had to give the actual language. In fact, I thought it would help people to read the whole agreement. Section 12.2 dealing with the requirement to use 50% of all sale proceeds to pay down the private debt is pretty interesting too, as well as the the restrictive provisions.
"The verbage in the 8K contradicts it."
Really? The Agreement is part of the 8K. And I didn't see anything that counterdicts anything that I said. The primary introductory part of the 8K doesn't deal with buying debt at all. That is why I wnted to see what the agreement actually said. And the agreement clearly deals with buying debt.
"Do you realize that with no changes over the next 3 years AFC will be the only debt ALD has?"
No changes? You mean that if ALD is able to pay off its obligations due through '12 of $1,450MM, it will only have $230MM of debt? That is right of course. But how is ALD going to pay $1,450MM of debt? It has said that it will have no net income. So that leaves selling off assets, buying back debt at a discount, or selling equity. I doubt that it wants to sell even $1,000MM of assets in that time period. It surely can't do it without taking huge discounts to value. I hope that it will be able to buy the other public debt at a discount, but both series have gone up a lot and the discount has narrowed. And ALD is now significantly restricted on how much it can buy and when. And the amount of equity it can sell is fairly limited, even if the proposed dilution is permitted.
I think that it is much more likely that some equity gets sold, some debt gets bought back at a discount, some of the private debt gets retired with 50% of sales proceeds, and then the rest of the private debt gets refinanced at much more reasonable terms (lower rates and longer maturities, etc).