Ferguson cut the deals in which Simpkins and Dalton got the $13 mil and he's damned proud of himself. How's this bosom buddy of Doc and Beasley pleasing everybody now? I tell you it's just more of the same. He's part of their little family. Ferguson also worked with Peaches when she was deputy governor of TN and he was finance commissioner. Insiders everywhere. By the way, most of TN's cabinet (Peaches and J. Ferguson in particular) under this administration has been chosen by Beasley.
but the AG is a Clinton/Gore appointee and operates on what is commonly known as a double standard. What isn't good for the goose [that layed her golden egg], is OK for the gander [with all guns blazing].
Ordinarily I would agree that the this is not the right time to be spending precious cash on what amounts to an acquisition. However, I have four reasons for supporting the move at this time: 1. The consideration is within the parameters of the bank waiver agreement; 2. Because the service companies have been money makers at the worst of times, the price won't go any lower; 3. Because I believe this enhances the value of the company, it also enhances the value of the shareholder ligigation settlement; and 4. Most importantly, it further distances the company from Papa Doc and his gang of thieves. (We know that Doc is still a director of the service companies, but the proxy supplement doesn't disclose the identity of the manager who is being paid $150K or so for a non-compete. My fear is that it is either Papa Doc, Baby Doc, or possibly that certifiable genious Devlin. In which case the sooner the service companies are aquired outright, the better.)
The big problem I see, if this is not outright insider favorism, is the timing of this deal. Why buy it now? This company is still rocking on the edge and cash is king.
The restructuring was to be done without including those entities into the restructuring. The timing stinks. This company needs to perserve cash. This company has had a hell of a time trying to raise cash and bankruptcy has been a common term used in PZN's near future. How can we afford to send cash to insider cronies at this time?
I would like to believe this is a sign that the cash crunch is over, but, I doubt that. Unless we have been totally misled about the financial position, to gain a positive vote, cash should be preserved.
I am certainly glad that I voted no on the proxy. At least I did my share to tell management (past and present) that I do not trust them for a second.
If Dreman lines up on the yes side like Pac Life and Gotham, then the proxy will pass. That is fine with me. Let the institutions approve it if they can agree that it is the best alternative left. But management knows that small fry like myself are powerless to really see through all the subterfuge that they use to steal from us. Therefore, my no vote is a message that they can not count on retail investors to rubber stamp their theft. Let them start returning Dreman's phone calls to beg for his support.
Where is the SEC? I'm reminded of the 1980s S&L scandal. For years, people were waving their arms, trying to get regulatory attention about the financial abuses taking place. And in the end, when the ship had become a juggernaut and was ready for the vertical dive, TA-DAA...taxpayer bailout! Because we can't allow an essential public enterprise to go belly up, of course.
Having crossed the line from skepticism to cynicism some time ago, I'll make the reckless prediction that the remaining lifeboats will be quietly pirated by inside people, after which either (1) government/s will have to step in to keep the current CCA operations viable, or (2) one of the other "competitors" will buy the company for nothing. Too much real money is just gone, gone.