Paul, the information you just mentioned, that VLNC offered CC a pound of flesh and CC wanted three, is extremely significant. That must mean that CC is not as friendly as we were led to believe. If CC is friendly and does not use its paper to "implement a death spiral" why would VLNC offer a pound of flesh? If CC does not have "nefarious intentions" why would they demand three pounds of flesh for their position?
That reminds me of the way JHarken got rid of their floorless, they paid 40% premium to buy it back. I do not think that VLNC has the money to buy CC out, so, until these negotiations are out of the way, you may see the stock drifting further down, notwithstanding the current negotiations.
I must say, however, that VLNC got itself a sharp new CFO. So far he got into the kitty some $9 MM under fixed terms, in what should be considered a tough environment. He inherited the CC situation, and is working on resolving it, which is also a good sign of his acumen. The only thing missing of course, is John's, by now too famous, mantra, how about those OEM's PO?
Zeev |
