RE:RE:RE:Deal is getting done - May 24th update (direct link)
BlueCollar51 wrote:
I don’t have any evidence or inside info. to back it up but I suspect that there may have been some “foot dragging” by Sinoenergy that caused the delays in the review process. It would have been a bit “awkward” if had they received IC approval before the Changchun shareholder approval.
Well, perhaps that is not the case either. As far as I know, Sino is only required to put up more or less 100 million into the escrow account 1 or 2 days after the IC approval... They most likely have the 100 million on hand which would be the entitlement of the holders (shares and debs)
They are required to pay back the lending syndicate, but 6 months following the deal. If they are rather confident on getting the financing to repay LRE's debt, perhaps it was their plan to do it in that fashion at this time. Regardless, as holders, this is not our business as our money is already on hand. Besides, is this deal even conditional to the purchaser getting the financing?
For what it's worth, I've trimmed down 2/3 of the position I had to lock in some gains... The potential downside was a scary risk and as I was thinking about it... Even if I think the deal will get done, I don't think risking 100% for 15% makes a lot of sense. But that's my own risk tolerance.
Anyways, thanks for sharing your thoughts BlueCollar... You have done quite a bit of research and it's generous of you to share with us. Much appreciated.