Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ZixIt Corporation (ZIXI) -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (3905)	9/16/2002 2:05:41 PM
From: Kevin Podsiadlik	Respond to of 4120

Kinda looks that way, don't it? More on Promethean and its dealings with another struggling Dallas-area company: Certain companies are like tow trucks: If they're in the neighborhood, chances are good there's a car wreck close at hand. That came to mind once we took a look at one of the latest deals involving Promethean Asset Management, one-time lender to such well-known clunkers as eToys, Excite@Home and the sub-dollar MicroStrategy. Wheezing and sputtering in the breakdown lane this time around is InterVoice-Brite, which sells voice-recognition systems and other services to telcos. Late last month, InterVoice-Brite issued a press release saying it had successfully restructured its debt, in part through $10 million in convertible notes it issued in a private placement. "I'm pleased with these transactions," the CEO said in a statement. What the company didn't say (although investors might have figured it out from an SEC filing to which the release alluded) is that the convertible notes, issued to Promethean, look an awful lot like what cynical Wall Street types call a toxic convertible or death-spiral convertible. So far Intervoice is still standing. But one thing seems clear: Promethean wouldn't be sniffing around Zixit if it didn't sense blood in the water.

To: Dale Baker who wrote (3905)	9/16/2002 4:08:40 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 4120

Now they've changed their story, now the investment group is supposed to be "Prometheus Partners LP". But this seems a bit doubtful, since this Prometheus has exclusively dealt with private and non-high-tech companies, and furthermore tend to dwell on acquiring and combining similar companies within a single industry. Not impossible, but a deal with this Prometheus would almost surely be a full buyout, and the price they get would hardly be likely to please the shareholders.