RE:RE:RE:RE:RE:RE:RE:forebearance extended for another weekHamSandwich wrote:
The MIE deal first was for 200 million then it was revised to 100 million, which is a pretty terrible sign.
And this 100 million was a cash injection.
The current deal is for the whole company and all of their debts, they're completely different things.
The original $200m “proposal” fell apart because MIE/Maple Marathon could not raise the money.
The revised $100m “proposal” wasn’t much more than a “Band-Aid solution” that due to the revised Credit Facility Term Loan provisions made it a bad deal for everybody. As far as I can tell although the revised “proposal” included a $5m Termination Fee if Long Run backed out there wasn’t one if MIE/Maple Marathon backed out.
It was also stated in the “proposal” that it could be Terminated at any time by mutual consent with no Penalties to either party.
At some point Long Run received the “unsolicited competing offer” which they were required to advise MIE/Maple Marathon about.
Due to the FACT that MIE/Maple Marathon is NOT demanding the $5m Termination Fee that they were entitled to if Long Run accepted the “unsolicited competing offer” it should be clear that they had either already backed out or were quite happy to when the opportunity presented itself.
I don’t see anything in the revised MIE/Maple Marathon “proposal” that would enable the Long Run BOD or the Lenders to FORCE them to proceed with a “proposal” that they wanted out of !!
What would be the point of the Long Run BOD having the shareholders vote on a “proposal” that no longer exists? Is seems that some forget that MIE/Maple Marathon had rights and they exercised their right to withdraw their “proposal”!
There is NO DOUBT that this has been a BMF “Cluster F#&k” from the beginning.
I was a bit surprised that the LRE share price did not tank yesterday. It will be interesting to see how LRE.DB reacts when trading resumes today.
Suspending interest payments on a Debenture is a potential “Event of Default”. If the condition persists for 30 days and the holders of 25% or more of the Debentures join forces, they can Demand Immediate Payment In Full! Don’t forget that missing the $100m Jan 31 Term Loan payment is an “Event of Default” that has been temporally “waived” by the Lenders that would allow them the Demand Payment In Full of the entire $350m Term Loan.
If the “current proposal” or some modification of it fails Long Run will be Insolvent!
The More Things Change The Worse It Get’s !!
Jan 29 is “crunch day” but I suspect that it could be extended by “Mutual Consent”. All we can do is wait for “Developments” and “Speculate” on the ultimate outcome!
As Always; Do Your Own Due Diligence It’s Your Money !!