I went out and bought the afr. the article is disgusting....

I went out and bought the afr. the article is disgusting. misleading, and extremely poorly written. they give the impression that ALL of the money invested in VCS will be written off.

i have been a loyal valad supporter, but cannot take this s hit any more. i am going to sell first thing monday.

the banks WILL screw valad. just like they did to every other company in distress. they will refuse to refinance, s tuff around for at least 1 year, all confidence in valad will be destroyed, and the banks will probably want to take equity leading to massive dilution.

but perhaps the bigger problem is that valad's directors are not aligned with shareholders. and that is obvious when you consider this mccabe deal. i say it again, diluting equity and NTA by 20% simply to reduce debt by $60m is almost criminally negligent, especially when there are many other options available to the company by way of asset sales by september.

but the directors have already "agreed" on such a deal. not only will this dilute our equity, but it will give mccabe a blocking stake which will severely reduce the attractiveness of valad as a takeover target. obviously the directors have struck a deal with mccabe to get multi million dollar salaries when mccabe takes control of the company.

i am gone from this stock monday morning.