Investors: The Court held a hearing regarding several matters on 5/9.
As you know from previous postings, the Tonti Group has filed a motion to restructure their bid. This is in essence an increase in the bid and offers guaranteed sums as well as a cash alternative. Tonti’s attorney spoke in favor of the motion and Silverpoint opposed it.
As an alternative, Tonti suggested the Court withhold ruling on the Fairness issue for at least 72 hours during which Tonti will attempt to negotiate a resolution with Silverpoint. The Judge indicated she would do this. I have no idea whether Silverpoint will negotiate, but the time is available.
Next was the fairness hearing. The Receiver described his familiarity with other portfolio sales and opined that the Silverpoint bid is fair and reasonable. The sale price approaches about 21% of investment dollars. After repayment of loans and other items the net to you should be in the 12%-13% range from the sale only. It is probable that other amounts from satellite litigation and other collection efforts will generate additional distributions in the future. It can’t be said how much or when.
When the rulings come out, I’ll post something here.
Contact me with questions or concerns.
Andrew Storar, Examiner