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Strategies & Market Trends : Strictly: Drilling II
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To: Frank Pembleton who wrote (1180)9/7/2001 2:40:22 PM
From: isopatch  Read Replies (3) of 36161
 
Frank. Methinks some questions about ECO mgt

public reports to shareholders and whether these contained adequate disclosure about the severe deterioration in the companies financial condition in the past several years.

The indenture agreement for the 1999 "senior securities" contained the unusual provision that allowed ECO (for years) to run up an enormous liability in unpaid interest and principal. This enabled them to legally conceal (at least in terms of criminal culpability, IMO) a de facto condition of default on these obligations.

However, that this severe impairment on the financial condition of the company was glossed over or IN MOST CASES omitted entirely from mgts public releases will IMO result in some pretty nasty class action suits on a variety of civil charges.

I'm not an attorney. But from my many years in the investment biz, I've seen quite a few plaintiff groups win with a lot less than this mgt has served up to the tort lawyer sharks that are FOR SURE working the phones as I type this. And on a silver platter at that.<lol>

But however this thing drags out over the next year, although am glad my position was only a moderate sized one by yesterdays opg? None would have been preferable.<G>

Isopatch
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