Comments on: Having Server Problems

By: Howard

Howard — Sun, 19 Oct 2008 14:07:30 +0000

Any lawyers out there able to translate this into American English:

“As part of a compromise that was reached among the Company, Fertitta and Jefferies Funding, LLC, Jefferies & Company, Inc., Jefferies Finance, LLC and Wells Fargo Foothill, LLC (the “Lenders”), the Lenders agreed under their amended debt financing commitment and Fertitta agreed under the amended merger agreement that they would not claim that a material adverse effect had occurred as a result of the occurrence of any event known to them through the date of execution of the amended financing commitment and the amended merger agreement, respectively.”

By: Joe Ponzio

Joe Ponzio — Wed, 08 Oct 2008 05:17:01 +0000

The deal hasn’t fallen apart yet, but is being renegotiated. This uncertainty caused me to sell half of my position yesterday. I’ll hold the other half for now until see the terms of the new deal.

By: A

Tue, 07 Oct 2008 10:18:09 +0000

Concerning LNY, and according to the latest SEC filing, Fertitta seems to be trying to have the financing reneged, and is talking about a “substantial” price reduction. And a major catastrophe may be unfolding as well in the markets, of course.

By: Joe Ponzio

Joe Ponzio — Fri, 26 Sep 2008 05:16:09 +0000

Any individual Workout can go bad and you can lose a lot of money. That’s why I always say people should generally keep Workouts to no more than 20% of the portfolio. Overall, Workouts — taken as a whole over the course of many opportunities — can provide wonderful returns, especially in times of flat or falling markets.

That said, the shareholder meeting has been set. We’re just waiting for the definitive proxy to be filed and sent to shareholders. Shareholder approval is all but guaranteed; so, the only thing left to really upset the applecart would be a renege on the financing or some other major catastrophe.

By: Carson

Carson — Thu, 25 Sep 2008 08:35:41 +0000

I just saw the shareholders meeting get set for LNY. The filing still indicates the $21 price. I remember a post around here somewhere saying that this “setting of the shareholder meeting date” is usually a good final point to look for in these workouts. I could be way off base, but what are folks opinions about LNY now?

By: Howard

Howard — Thu, 18 Sep 2008 03:27:21 +0000

Very hard. Funny thing is that I know the definition of all the words, but when put together it becomes Greek.

I must say however that the latest SEC filing was easy to read and didn’t sound all that bad. According to the article Matt referenced the areas affected are only 25% of the whole company, and of that only a small portion had significant damage, and on top of that insurance will cover probably a big portion of it. Too optimistic?

By: Mark

Mark — Wed, 17 Sep 2008 22:53:03 +0000

Hard to read the legal jargon isnt it!

By: Alfonso

Alfonso — Wed, 17 Sep 2008 05:05:03 +0000

Mark,

in the document, your point G) is another exception in the defintion of %u201CMaterial Adverse Effect%u201D:

%u201CMaterial Adverse Effect%u201D means any event, development, change or circumstance (any such item, an %u201CEffect%u201D) that, either individually or in the aggregate, has caused or would reasonably be expected to cause a material adverse effect on the condition (financial or otherwise), results of operations, assets, liabilities (contingent or otherwise), properties, solvency, business, management or material agreements of the Company and its subsidiaries taken as a whole, except in each case for any Effect resulting from, arising out of or relating to any of the following, either alone or in combination: …

What it means for the agreement I do not really understand.

By: g

Wed, 17 Sep 2008 04:08:04 +0000

hopefully he’ll just lower the offer…

By: Wayne

Wayne — Wed, 17 Sep 2008 00:48:37 +0000

http://www.chron.com/disp/story.mpl/business/6006120.html

Be sure to read the last line in the story.