what an exciting time., page-5

what price were the bonds sold for? You are correct Mizuho sold all their bonds to Stark for an undisclosed sum (below face value perhaps?). Mizuho’s relationship with CMQ raised many unanswered questions.

Towards the middle of 2005, Mizuho questioned CMQ on whether the conditions/covenant requiring Mizuho to subscribe to the option bonds were fulfilled. We were never told what Mizuho questioned and we must not forget Mizuho/Stark had 2 board places and executives directly appointed by Mizuho or whose appointments had to be approved by Mizuho.

The conditions stipulated in the bonds required Mizuho to obtain written permission from CMQ to sell the bonds. Was it coincidental that Mizuho sold their bond IMMEDIATELY, less than 24 hours after the expiry of the condition requiring CMQ's approval. The questions need to be asked are:
1) Did Mizuho asked for permission prior to the expiry of the condition?
2) Was the bonds sold below face value? The sale price will reflect Mizuho’s assessment of the CMQ risk – Mizuho certainly has more information on CMQ than any ordinary shareholder
3) What did Mizuho knew that caused them to be 'reluctant' to subscribe to the bonds? What were the questions asked and what were the answers given?


Cheers