Sounds like BS is on the bid and Kock is on the ask: the spread looks to be around 35% - 40%, but the ask may still be somewhat uncertain and there is certainly a time factor on the ask....:)
Just for the sake of the debate, and assuming that BS does have a large naked short position, I don't understand what BS loses if they can't ultimately cover - might it effect there MM ability in some way?? I don't know, just asking.... Another alternative, maybe they also think that creditors will be paid 100% and are simply trying to make some quick bucks off the spread. Is it possible that they have a side deal with either Solv-ex or Koch to try and buy the debts for say 60% and then get funded at, say 90%, rather than the 100% that Solv may expect it ultimately has to pay. If Solv is involved, it would seem to be a pretty good business move just because it may save some money. It still seems peculiar to me, in general, that BS would
buy trade debt without some kind of pretty certain expectations about the results...as far as I knew, they weren't a reverse factoring company.
Just some ideas and/or food for thought. I am not suggesting that any of them are fact.
Troy |
