yes that is correct... 'IF" they miss payments. Even a that, a legal process is required to 'take' the ships. The process is not any different than any collateralized loan whether it be real estate, capital equipment or ships in this case.
Any debt holder wishing to seize collateral backing a loan has to first petition the courts and a judge determines if such a transfer of collateral is in the best interest of ALL involved, not just the debt holder. With the loan being syndicated AND some deep pockets now involved parsing up a 45 ship fleet is far less likely to occur than some want to believe.
The debt holders (bank, hedge,etc) do NOT OWN the ships. They own the debt. Under your law the bank can just come take your home (actually ur mothers house and the basement too) because they own the debt. Why stop there, take the car and the big screen TV that is on the credit card aslo. What a fart of desperation !.
This audiophile clown is by far the most arrogant and misinformed stooge to visit YMB's.
The CURRENT institutional holdings is 4,573,003 shares or 27.45% !!!
Far too worried about calling names like a grade school punk to even get facts to back up his spew.
Investing 201. Mutual Funds don't buy shares for Institutions. What an absolute ignit boobt
"take the ships". For the loudest mouth on the msg boards calling ignorance you best look in the mirror first. This isn't communist China where they can "take' whatever whenever. There isn't a BK judge in the land that will approve a petition based on a covenant breach. Missing payments a whole different story of which EGLE has NEVER missed. Aside from BK 101 there is the syndicate problem that you apparently can't even begin to grasp.
Yes, business as usual for this clan. Offering after offering after offering Below NAV. If you are happy with continuous dilution you have found the right stock. There are BDC's out there that won't issue under NAV and have never even asked to do it. If Apollo were doing offerings to capture accretion it would be one thing but the only objective for them is to increase management fee's. When is the last time shareholders got a bump up ? Oh... that's right, only been cuts !
Exactly why I sold most of my holdings in the high 8's a few weeks back. Things were looking too suspiciously good for this clan so out came the chute. Pile on the fact that their 'pricing' on this and the rest of the offerings are never disclosed. This only means they are selling below NAV to the best of friends.
and u r the old time dolt that thinks because someone bought a portion (yes the loan IS syndicated) of the debt they can seize property like it's communist China. maybe those other holders can use 1/2 a supramax hull for their office when everything is parsed out. .
u have been barking EGLE bankruptcy for more years than anyone can keep track of, still hasn't happened. back in the 1920's there was no shortage of calls for GM bankruptcy...and they were eventually correct. just took 90 years.
They must be absolute idiots. They must not be reading this message board with the genius and wisdom of those who have guaranteed bankruptcy.
The syndicate shares that were granted during the last restructure surely won't be "wiped out". That is a far better guarantee than the basement predictions that never end here.
Why did EXM,GMR,OSC,TBSI go bankrupt ? Largely because they had decaying fleets that nobody wanted to risk new dollars to save old junk. Add in the majority inside ownership and who is going to put good money after bad decisions that likely won't change ?
The bankruptcy claims never end here. Those standing on the soap box don't have much of a clue how BK really occurs. No judge is going to grant an involuntary BK petition based on some equation violation. If Egle starts missing payments - different story.
but why own a utility that doesnt pay a divi ?? just to watch the capital base age and deteriorate ?? and yes when that happens the assets (aka stock holder equity) DO get less valuable.
He lives under the rock of no information. The company announce the dividend WILL be cut or eliminated late February. If that's not a material event what is?? Who owns a utility stock that doesnt pay a dividend????
r u serious dude ? creating topics harassing authors with vulgar and slanderous accusations.
against the Yahoo rules of service. have you not learned this yet ?
now i understand why u can't learn the market either.
if u making money like u claim, u B out spending it, not posting 24/7 on MB's like a fool.
u surely don't make 5 or 6 figure trades. the way u act not sure u even in 5 or 6 grade.
only unsure thing left. do i waste time reporting U ?
maybe somebody else will.
how many id's u lost ?
and ur Surprised ? anyone following the KLC paper knew this would happen. nearly all of the outstanding shares for KLC became available for trading Thursday. with 2 trading days at +700% avg volume the only real surprise it's holding quite well out of the Thursday open. at the moment this is an unrealized loss and it's doubtful Soph is going to sell at the bottom. he won't sign contracts at the bottom so why would he sell the KLC shares at the bottom ?
yes, looking for confrontation is all he does all day from the basement of his mother's house. i haven't posted on this board in over a week and something lights up his chute ? maybe he was drinking, smoking or sniffing last night and got all confused.
btw dingle nut... i bought in the mid 1's back in Dec '12 while you arguing the buy. can't remember that in ur drug induced stupor ? sold some MAY mid 5's then SEP high 6's to completely cover my capital + vig. now I hold a FREE share count and i WILL buy more again at the bottom.
just because u cannot make money in the market doesn't mean EVERYONE else can't. I wouldn't, nor should ANYONE else ever take a word of ur trading advice. u might know a bit or two about shipping but ur trading, financial and social skills are as bad as it gets.
high grade bonds (AA ) selling substantially above coupon, w/o call have little yield. i'll take a CD at that point.
each his own. if you wish to buy debt above par ur choice. i just don't do it nor do the institutions. buying above par almost guarantees u hold it to maturity.
regardless of the individual semantics of how one views value of debt, the bottom line is the sale of the RBS held EGLE debt below par is nothing unusual. done every single day.
if EGLE starts selling ships below market value that would be something to actually get concerned about.
"But it is decidedly NOT true that "all debt... is sold at a discount". The secondary market price depends on several factors including the credit quality and the current structure of interest rates."
first Bonds and CLO's are two different animals. your Navios debt is a bond.
yes. anyone familiar with debt markets understands that yield and price are inverse factors. normalize that from purchase/initiation and ALL secondary debt is sold at discount. has to be or the debt market wouldn't tick. buying debt over par and getting called is a rookie mistake. retail investors are the only one's buying debt over par. seasoned traders know better.
ok Wile E. (a.k.a.) super genius. since u don't know. nearly all debt, particularly syndicated debt, is sold at discount in the secondary market. this EGLE loan is no different.
why is RBS selling the loan ? research Basel III ? RBS doesn't have much choice. off loading one of their largest is the fastest way to compliance. staffing to sell a bunch of tiny loans makes no sense.
the real question is...why r so many in line to buy it. TCP, OCM, BAC, CP. RBS held onto this debt for long enough, collected nearly $20M in interest Q2 alone. since inception ? u add it up. that will give you all the answers. they aren't 'loosing' anything.
and as far as "collecting the full face value". just not how commercial loans work. it's not a ma & pa mortgage.
oh boy...more message board wisdom !. whomever (RBS or other) holds the debt does not own the ships. they can't just start taking vessels. EGLE is currently 100% compliant in their contracts and since inception has ZERO payment default. can the bank just take ur house or car any time they so decide just because they hold the debt ? how ridiculous !
uh ? if ur going to call everyone wrong ever, u should at least be right all the time umbdass. the asset on Egle balance sheet is KLC stock not bunker fuel. 25+M in bunker fuel ?? now that is... stupid nonsense.