Steve,
Can't give legal advice, but for myself I'm leaning toward voting against it, even if I/we end up with nothing. The way I read the thing:
1) Palermo makes out ok @ $190,000+ year -- and it is he who misled the shareholders at the last shareholder meeting, made the (at best) ill-advised acquisitions such as Vega, so in this deal he's taken care of himself (as usual) while the stockholders get the shaft;
2) Shareholders get another serious dilution, and end up with stick in a non-public company, i.e., no real market for the shares even if the "new" entity is successful;
3) They sold off for next to nothing the one valuable thing they had (the technology for the thermoplastics)and kept a decrepit old electrical manufacturing facility. Maybe I'm getting paranoid, but the fact that the acquisition came within months of the bankruptcy filing makes me wonder if it wasn't planned with this end result.
Maybe I'm missing something, but it all just sounds too suspicious to me. At this point I'd just assume see the whole thing go down rather than take this deal -- maybe I'm being spiteful, but it really sticks in my craw to see Palermo et als. walk away from this smelling like a rose while we get less than cents on the dollar.
If I've missed something in reading the materials or if anyone else has a different opinion please chime in.
TW |
