RE: Looking forwardFrom the B.C. Partnership Act
https://www.qp.gov.bc.ca/statreg/stat/P/96348_01.htm#section56
Rights of general partners
56 A general partner in a limited partnership has all the rights and powers and is subject to all the restrictions and liabilities of a partner in a partnership without limited partners except that, without the written consent to or ratification of the specific act by all the limited partners, a general partner has no authority to do any of the following:
(a) to do an act which makes it impossible to carry on the business of the limited partnership;
(b) to consent to a judgment against the limited partnership;
(c) to possess limited partnership property, or to dispose of any rights in limited partnership property, for other than a partnership purpose;
The General Partner (DiGiT) did not have the authority to pledge our land as collateral to whomever is lending Acquireco the $7 million they need to buy us out. DiGiT had not asked us or received from us, our consent to dispose of our rights of land equity we have slowly built up over the past 12 years. DiGiT has breached a statute of the BC Partnership act, and should be dissolved.
Think about this for a minute..........what would you have to do to borrow $7 million for a big real estate deal? I think you would have to prove to the banker/lender that you had sufficient collateral to remove all risk from the lender. I think a lender would loan about 25% of the collateral. I believe the Thornton's, Erdman and Levine have proven to bankers that HLD has equity, from current land values, of at least $28 million, in order to borrow $7 million (25%). I think there might be 2 valuation studies. The first valuation study was prepared by CapWest using Dec. 2002, and Jan. 2003, appraisals, to determine the OFFER price of $1.02. The second valuation study might have been privately prepared, to show a banker/lender the current value/equity of HLD assets, in order to borrow as much as possible.
HLD is saying the assets are worth $14 million. Do you think a banker would lend 50%, or $7 million on that? I don't. I think they are trying to borrow 25% of the $28 million in HLD equity that DiGiT has pledged, without limited partner's consent.
I would gladly make a counter offer of $1.25 per unit, if I could use HLD's assets for collateral, and get all of HLD's assts for ZERO down of my own money. Wouldn't you?
Anybody planning on going to the Info meetings? If so, inbox me with the city or town you are in. We can keep some of our discussions private, just like the insiders.