RE:CALL TO ARMS FOR DEBSkasparovisme wrote: On April 27. Ad hoc is trying to share their costs across all debs. WTF ... With out numbers associated with it seems benign.
Facts; Adhoc group is currently approx 24% of Debs
legal fees approx $200 k to conclusion
financial advisory fees 3.5 million. That's right !!!!! Again WTF....
Adhoc wants to take upto 3.7 million off the top before any distribution to debs.
I certainly did not need any advice from Adhoc to know that 140 per $1000 was a bad deal and I should vote NO
Macquarie cap got involved in hopes that they could take over for peters and sell assets and or company.
Anaolgy: say you and three other people own a house. Someone comes along and offers to buy your house, before the four of you can decide whether you'll except the offer one of the 25% holders hires a real estate agent to review the offer. Without you knowing about it. The offer was a shitty one, you Already knew you were going to vote no. Fighting among the owners starts the bank steps in calls the loan house goes in foreclosure, court hires another realtor and receiver to sell the property. Property is sold and funds are paid in the court. Now the realtor comes and says hey it sold for more than the original shitty offer I want all owners to pay my commission (3.5 million) WTF
Macquarie did not bring a buyer to the party, nor did they list assets or do any work.I as a Deb holder not part of Adhoc group did not hire or engage them, this is not a case of tacit approval.
I say let maquarie get their money's for any from the Adhoc group.
All remaining 76% Deb holders need to show up in court or start sending disapproval letters to receiver. Otherwise take 3.7 million less
Huh? Kasparovisme, where have you been? Thanks for the timely information from the Court, but you should have been reading the information in more detail, as it has been stated several times, that the intent was to distribute fees, amongst all the Debenture Holders.
As stated in the Affidavit:
"Each Debentureholder's pro rata share of the aggregate cost of the Ad Hoc Committee's legal and financial advisory services, is approximately $26 per $1,000 face value Debenture to $37 per $1,000 face value Debenture (including estimated fees to conclusion). That cost is a small percentage of the estimated improvement to each Debentureholder's recovery, as estimated in Confidential Exhibit "13".
Not going to amount to $3.7 million, but definitely a nice deal for Macquarie. But if there was to be a re-cap of the company, raising $80 million or so to pay down debt and get drilling again, a broker would take a 5-7% commission off the money raised, leaving less money for the company to use. (Welcome to the investment industry: one party is always guaranteed a 7% rate of return, on the money you invest.)
I can't see the logic of opposing this in Court. Perhaps the Judge might say that the fee charged by Maquarie is excessive, and rule the actual incremental gain to calculate the commission on, should have been smaller, had a proper sales process been followed in the Reignwood offer, where Debenture Holders would have received all proceeds of the sale, and shareholders would have received nothing.
I would have preferred to see Macquarie backstop the Company's debt in a Debenture Holder credit bid, and take out the National Bank line: I'd definitely pay good money for that, provided that insovency wasn't just pushed a bit further down the road.
I'd bet this goes unopposed in Court. Quibbling over these fees seems silly, especially from people that didn't raise any arguments, when the whole receivership process was going on.