"vote against the transaction and HOPE Directors move to orderly runoff of receivables is SPECULATIVE" - oh I agree with you. And my view is there will be no orderly runoff. Given Somers controls both RMC and TGA, if this current TGA/RMC deal gets voted down, a deal will still be done to sell to RMC. (For clarity, I agree that that opinion is also speculative, but I think it is all but guaranteed. Somers knows RMC is the more natural owner and will find a way to get some sort of deal voted up.)
What Thorn is currently doing is outrageous. It is effectively blackmail for Thorn to tie together in one bundle the sale and the proposed cap return and div. Now they've done it however, if Thorn does sell to RMC at a later time, how could Thorn possibly then argue that any lesser distributions were then appropriate? Answer: they couldn't. So if this current deal gets voted down, worst case scenario as I see it is an outcome equal to the current proposal - but more likely it will be a vastly better one, because they will be forced to dangle some more carrots to get us to vote 'yes'.
TGA Price at posting:
$1.34 Sentiment: Buy Disclosure: Held
