Paul Frame has got the lenders by the balls and Paul is starting to squeeze. This news confirms that SEI will not bend to any overly-assertive noteholder requests and is perfectly content to let any pressure deadlines pass without feeling compelled to make a deal.
Keep Squeezing their nuts Paul. You are doing a masterful job.
Selmorstock, I agree, the only thing
that might work against Frame is the
unsecured noteholders might try to get
a trustee apointed since their is possible
fraud involved. Frame and company have
more experience in bankruptcy proceedings
than most lawyers and probably will prevail.
This is a pretty good soap.
Not originally, but after drinking the water all these years I guess it's had an effect (kidding). As far as the 11 scenario, there are some who I think view it as an opportunity. Particularly in a predictibly cyclical industry. I'm not one of them, though.
It's curious that the company did NOT announce an extension of the waiver period. I see 2 possible interpretations:
1. Negotiations are getting contentious.
2. A deal is imminent, so there was no point to going through the exercise of the extension document.
I personally have been involved in about 6 of these and rarely went through the formal waiver when the deal was moving along.
I also lean towards the latter explanation because of the other ongoing negotiation with the buyers of the O&G properties. Consider - if the banks wanted to, they could simply wait another month or so and see how the sale process proceeds. They gain zero benefit by forcing precipitous action now when the company is engaged in an asset sale process from which they could reasonably expect some debt reduction. So, it would make no sense for the banks to not grant a waiver if things were not going well.
Also, FWIW, the post over the weekend suggesting that the word on the street is that the asset offer was $60 million seems credible to me; it's 75-80% of book value, in line with what a legitimate buyer would likely offer.
My assessment is similar to yours. Two other interesting items are the wording in the press release "The Company and the Senior Note Holders are actively continuing discussions regarding a waiver of these compliance failures, as well as amendments to the Senior Note Agreements sufficient to ensure future compliance." Active discussions suggests that the discussions are not yet contensious. Today's trading volume also suggests that shareholders aren't panicking from the news release.
< Keep Squeezing their nuts Paul. You are doing a masterful job. >
That's why we pay our leader the big bucks. You get a far better deal if you are not intimidated by pressure deadlines and put shareholder interests firast.
<<< You get a far better deal if you are not intimidated by pressure deadlines and put shareholder interests first. >>>
I couldn't be more pleased at this great news. Many of us were somewhat fearful, that with all the external pressures facing Frame, he'd accept an onerous deal that he would have to live with if he didn't show the necessary backbone.
The lenders perceived leverage has now diminished. They hold notes that are technically in default. Now the lenders' auditors will make them write those technically defaulted notes down, thereby screwing the lenders own balance sheets. The lenders can avoid that technical default forced writedown if they modify the covenants creating the technical default conditions and then would have performing notes instead. Their only other recourse is call the notes, but they know that would lead to a powerful response of bankruptcy from a fearless leader who is not afraid to pull that lever. That wouldn't be in the interests of the lenders either, so by not folding to deadline pressure, masterful Paul Frame has shifted the leverage and now has them between a rock and a hard palce.
I couldn't be more pleased.
You're an idiot. This is not great news. It only shows that Frame and Fuir are complete and utter slime buckets and creeps who are deliberately trying to bankrupt the company.If the Board fails to act today and fire the two of them lawsuits will be filed to hold the Board members individually liable for their failure to act, breaches of their fiduciary duties, waste, mismanagement and fraud.
seems to be an epidemic of greed in Texas... The Enron debacle, the guy in the White House, etc... Now these guys ? Are you surprised ?
A few posts ago (and many previous) there was a slam of California's Grey Davis for his fight to protect Californians from manipulators (Enron)... Funny how a year and half later, it appears he was right... There seems to be a lack of integrity in Texas, not California...