Why is this taking so long?
This is a re-post by Tode from the R/B board. I feel it is worth repeating and maybe for many it will be the first time you've read it. The link to it is at the end of the post if you need it.
By: tode_is_back $$$$$
09 Jul 2002, 02:49 PM EDT Msg. 512714 of 514590
This is a long one...
But hopefully it may address some concerns here. I have concerns too. This all seems to be taking way too long, and I'll be the first to agree with that. It is easy to be flippant about it, and write this company off as a scam. I myself, have wondered the same on many occasions. I still can't say with 100% security that it isn't, nor can I say that 100% of what I am posting now is fact. But these are things that I've "heard", and they do make sense, to me anyway.
1. THE REFI LOAN-
MPTV is dealing with a reputable named lender on this refi loan. I don't know their name. Tuesday of last week was their last working day, due to the 4th of July holiday, until Monday of this week. MPTV has all of the necessary paperwork complete and in escrow with the exception of the final escrow agreement form. When this form is agreed upon by both parties, MPTV and the lenders, a closing will take place. One problem with this lender is that they've recently closed three other loans in the past couple of weeks. One in San Francisco yesterday. This took the loan officer that MPTV is working with, away from the MPTV matters for a whole day. Two other loans closed just recently with New York lendees. This took time away from MPTV as well. As did the holidays. MPTV is NOT the only lendee on the table. In fact, they probably don't rank very high in terms of importance. Basically, MPTV is at the lender's mercy as to when things will happen. They cannot force the lenders to hurry. Make sense?
2. THE SECOND TRANCHE
Little is known at this time. It could come all-in-one loan, or it may follow closely behind, or it may follow two weeks behind, or it may not follow at all. The last was obviously a worse-case scenario that I put in myself. There are NO guarantees. As of now, things look good, but slow. When will it be done? Ask the lenders. Only they know for sure.
3. PAST LENDERS
Say what you will about the tired old excuse of STILL using 9-11 as a scapegoat, the fact remains that 9-11 has done more damage to the financial sector of America than anything in a long, long time. Let me give you just a small example...When a company like ENRON is trading shares at around $80.00 per share, and many other large established companies are doing the same, and these companies make up several popular mutual funds, and then suddenly 9-11 happens, which devalues every last stock in the market causing funds to collapse and paper trails to end, and crucial people to die...where do you think that money went? It's not like it went to some bank account somewhere. Trillions of dollars vanished into thin air. VANISHED!!!!! You all see what the threat of war does to the stock market in general. We've all heard how the market falls just on the anticipation of bad global events. Why is it so hard to believe that an actual global event such as 9-11 wouldn't devastate the financial sector? It would! And it did! And it still has not recovered FWIW. Most lenders use investor groups. These are wealthy people who pool together money and invest it (through lenders) to make better interest than a bank account or CD will pay. When political strife occurs, would YOU invest your money-knowing how the market reacts to the strife? I wouldn't. A past lender suffered from this situation. As for further past lenders, on my own, I stumbled across some interesting information on GOOGLE one day. Feel free to go there and enter "Remington Financial Group". On the first page there is a link called the SEVENTH DUE DILIGENCE BOARD. I encourage all of you to browse around in there and come to your own conclusions about ALL lenders. When doing so, try to remember the fact that MPTV is not exactly an established company with a blazing track record. They too are a bit of a risk for lenders, so try to keep that in mind when wondering why lenders seem to "push and pull them around", as I once recently posted.
4. THE BIG MONEY
It is a known fact by all that MPTV has PRed that they are dealing with two big money lenders. One is a "guy" with $100 million. The other is H&B Group with $150 million in equity financing. Both of these potential loans are very close, but they have been very close for a long while now. What's the freakin' hold up? Ask them. It always comes back to the GOLD STANDARD. He who has the gold, sets the standard. That is a fact, always has been, always will be. It's not like MPTV can call them up and threaten them to fund or else. So we wait. Perhaps the big money is nervous. Perhaps they've been set back from 9-11 too. Perhaps their money will be contingent upon other money. I do not know, nor will I pretend to. But if MPTV believes that they will fund eventually, who here on this message board is going to stand up and say that they know better? Unless of course you believe that this whole thing is a scam. If that is the case, then why are you here anyway?
5. CAPITAL RESERVES
Name an OTC company with capital reserves. If you can, there aren't many. MPTV isn't one of them. The filings will prove that. But what if the need for a large amount of capital arises? Not a desperation situation-to keep afloat, but rather a sale item that just became very affordable. How does an OTC company perform this task? They do what all companies with a lack of capital reserves do. They shelve a said amount of shares for that rainy day. Or that sunny day, depending on how you want to look at it. It is very similar to the guy who takes out an open-ended equity line of credit on his home equity loan. He just allowed himself to borrow against his home if need be. If the need never arises, so be it. He's not obligated. But it's there if needed. In order to shelf a said amount of SB2 shares, it takes approximately 6 or so months for the SEC paperwork to clear. Obviously if you needed the capital NOW, you wouldn't want to file for the shares now. So you do it, get it done and out of the way, and they sit-just in case. Meanwhile, you work on the upcoming financing. If it indeed comes through for you, the need for those shelved shares disappears completely. They probably will never see the light of day. On the other hand, if your share price rises for any number of reasons, and you use the SB2s at the higher price, it might allow one to acquire big things at low prices.
Whether you agree or disagree with this post is your decision. I'm sure it will be bashed and laughed at. These are things that I believe. Am I impatient? You're $#@&^*@!* right I am! NOTHING should take this long! But it is taking this long. And it may take a while longer. Nobody really knows for sure. But take comfort (if you can) that things are basically done from this end. Now let's hope they get done from the other end as well. Good luck to all.
JMO
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