craigt...
From what I have learned over the past 2 months from numerous sources, here are my responses to your statements:
1) Obtain a loan from Gould rather than more conventional financing.
Response: Jim did receive loans from other people. Unfortunately money ran short. Then Mr. Gould showed up. That was immediate money, meaning Jim did not have to go looking for money. It was right there, so he took the deal. Mr. Gould had a deal with Jim to lend a certain amount of money, but then he refused to loan Jim all the money. When Jim could not come up with the extra $800K needed, that eventually led to the current problems.
2) Wind up in receivership when Gould decides to obtain the property.
Response: Refer to #1 above for the reason.
3) Pass up bridge loan opportunities (months ago) to exit receivership.
Response: Correct, he did. However, those 'deals' were so bad, had Jim signed the paperwork, it basically would have left MPTV with nothing. From what I was told, in one case, there really was a Chinese Businessman (a rumor at the time) who wanted to lend Jim the money. However, that deal would basically have left that businessman in charge of the property. He was interested in the land value, not the shareholders of MPTV.
Unfortunately, those other deals were 'money-grabbing' deals. In the end, Jim had to say "no thanks". Yes, those were some nice deals, and Jim could have signed on the dotted line. I have to give him a lot of credit for not signing. It had to be awfully tempting at the time, but those deals just weren't good.
4) Cut shareholder equity by 2/3 by increasing issued shares from ~250M to 750M.
Response: I know the 'actual' numbers have been in question all along. One has to also take into consideration the unexecuted 200K warrants, and the restricted shares. I'll let everyone else fight over those details. However, from the standpoint as to whether or not they may have illegally dumped shares into the market...
Opinion: Personally, I would be shocked that MPTV has illegally issued shares for the 'second' time, especially when they are so close to wrapping this thing up. I also don't believe any lender worth their salt would enter into any kind of a jvp with MPTV if they knew this, and I suspect they (the jvp) has all the answers regarding the number of shares out there.
5) Further cut shareholder equity by an unknown amount (probably VERY substantial) by entering into a JV agreement and forming a LLC to reobtain the property.
Response: From what I have learned from a couple of very good sources, at the worst, MPTV would end up with either an 80%/20% split, or a 70%/30% split with the jvp, with MPTV having the larger percentage. However, there are certain variables in the outcome. For instance...
Peggy, from MPTV, supposedly told a couple of callers that there were actually 4 groups in negotiations with MPTV. I don't know about 4, I only know about two. One being the main jvp, and the other a private group of lenders. I believe one of the private groups is headed up by one of my long time sources. He told me a while back that this is what he was going to try to do (put together a private loan for MPTV).
Also, based on other information I have heard, I do believe it is indeed he that is currently involved in negotiations for a private loan with MPTV. IF (and I say IF) my sources private group does the entire loan, it's possible that MPTV could come out of this with 100% of the profits, title to the property and, Ralph Mann (owner of All Star Resorts, who is MPTV's partner in the LLC), out of the picture, meaning he would no longer be a partner in the LLC with MPTV, which also means he would have no percentage of the deal. Actually, it's my understanding from two sources that Ralph Mann never was going to remain part of the LLC. The deal all along was for Ralph Mann to be bought out of the LLC, but that's another story.
However, it's also possible that this loan could involve two groups; the main jvp, and that private group of lenders. We'll all just have to wait for the final outcome.
NOTE: If there really are 2 additional private groups in negotiations (total of 4), I cannot speak for what their deal would be with MPTV. The above is based only on what my personal belief is regarding the possibility that my sources group funds the loan.
In the end, based on what I have been able to find out, I honestly believe that whatever deal MPTV signs, it is going to be a great deal. I have no proof of this because we do not yet know what deal Jim has, or will sign. This is just my personal opinion.
DISCLAIMER: This is based on what I have been told by certain people. Some of the info I have confirmed with more than one person. Other info I had to go with one source. TAKE THIS FOR WHAT IT's WORTH. Also, according to Peggy at MPTV, myself and DISCODEL don't know anything. For the record, DISCODEL (Dan) has never been a source for my information...period.
Kirk :>) |
