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Post by Bobster231 on Mar 23, 2011 17:05:26 GMT -5
Honestly, that comment by Clint Bollock on Hustler and Lawless last night about the potential of these bonds becoming junk and worthless has completely freaked any potential investors out. The letters that the GWI sent out did the trick. Even without an injunction, these bonds will be become junk with a winning lawsuit. If you are an investor and Gary Bettman is asking you to purchase this, You think you are gonna take a chance of throwing your money away? GWI has played this so damn smooth. The threat of the litigation has potentially killed this deal. No legal action, just that threat has been enough, so far. Keep the faith Jets fans The hour glass has just about run out...Just about, nearly there We were all worried that without an injunction we were screwed, turns out that is not the case. GWI is a bunch of smart people running that place. I am very impressed. Anyone else notice Bollocks confidence when he said he is positive they would win any potential lawsuit because this deal violates the law clear and simple!
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Post by shanehoopfer on Mar 23, 2011 17:07:45 GMT -5
That comment shocked the hell out of me. I always assumed that the bond money would just go back. But if they become junk then the risk is enormous.
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DrGui
Veteran Member
Posts: 227
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Post by DrGui on Mar 23, 2011 17:08:18 GMT -5
"The end is nigh." ;D
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Post by wpgmike on Mar 23, 2011 17:22:19 GMT -5
Hahaha! Remember a few months back? All the doubters!! "Paper tiger!! All bark no bite!! It's over they aren't doing anything!!!" My how tones have changed! It's all good now!! Besides the obvious parties that we are thankful to for bringing us this close to our team returning home, I'm grateful that GWI has stood up for thier beliefs!
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Post by John on Mar 23, 2011 17:30:01 GMT -5
Actually my uncle explained to me that his comment was wrong. (my uncle is in the financial/investment sector and extremely successful so he knows his stuff) Here is what he told me. "On the bonds I do not understand how on earth they can become worthless. No self respecting bond house will release the funds from the sale until the legal issue is solved hence the way GWI kills the deal. Usually in a case like this the bonds are sold but the funds are kept in escrow and not released until the title or the deal has passed all legal issues. That being the case the money would not be lost because the funds would not be released from escrow until it was prudent and safe to do so, this would in my view cause the vendor (NHL) a big problem as the bonds would have been sold but the NHL would not be given the funds until the company that marketed the bonds was sure that the buyer could get good title (no encumbrance on the title). If the funds were released from escrow and GWI won its suit my view is that the bond purchasers would be able to file a law suit against the firm that marketed the bonds. The US loves law suits so I think this is the issue and the reason that GWI is so strong right now and why the buyer tried to sweeten the deal. With GWI in the way they can sell the bonds but not release the funds until the court case is solved and this takes time. There is no logical reason for a bond house to want to waste its time and market a bond issue that they may not get paid for (if the funds are returned to the buyer and never given to the seller the bond house makes no commission)"
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Post by shanehoopfer on Mar 23, 2011 17:32:16 GMT -5
makes sense
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Post by John on Mar 23, 2011 17:33:37 GMT -5
So basically even though the bonds do not become "worthless", the odds of them going through in time to complete the purchase and have the money change hands is next to if not nil.
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Post by TheDeuce on Mar 23, 2011 17:35:28 GMT -5
Actually my uncle explained to me that his comment was wrong. (my uncle is in the financial/investment sector and extremely successful so he knows his stuff) Here is what he told me. " On the bonds I do not understand how on earth they can become worthless. No self respecting bond house will release the funds from the sale until the legal issue is solved hence the way GWI kills the deal. Usually in a case like this the bonds are sold but the funds are kept in escrow and not released until the title or the deal has passed all legal issues. That being the case the money would not be lost because the funds would not be released from escrow until it was prudent and safe to do so, this would in my view cause the vendor (NHL) a big problem as the bonds would have been sold but the NHL would not be given the funds until the company that marketed the bonds was sure that the buyer could get good title (no encumbrance on the title). If the funds were released from escrow and GWI won its suit my view is that the bond purchasers would be able to file a law suit against the firm that marketed the bonds. The US loves law suits so I think this is the issue and the reason that GWI is so strong right now and why the buyer tried to sweeten the deal. With GWI in the way they can sell the bonds but not release the funds until the court case is solved and this takes time. There is no logical reason for a bond house to want to waste its time and market a bond issue that they may not get paid for (if the funds are returned to the buyer and never given to the seller the bond house makes no commission)" That has always been my take on the situation - otherwise it would be win-win for the NHL and MH. MH would have his team, the league would have it's money, and the only losers would have been the bond purchasers. There is still risk if someone did want to take a flier on those bonds. I bet they would get zero interest on their investment during the couple of years this thing wended it's way through the courts. If GWI won, the transaction would be reversed and everyone would be made whole. Except that the investors would have had $100+ million tied up and earning no income at all. Even Royal Bank savings accounts would have paid a quarter of a percent. m.
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Post by MRV on Mar 23, 2011 17:47:34 GMT -5
Actually my uncle explained to me that his comment was wrong. (my uncle is in the financial/investment sector and extremely successful so he knows his stuff) Here is what he told me. " On the bonds I do not understand how on earth they can become worthless. No self respecting bond house will release the funds from the sale until the legal issue is solved hence the way GWI kills the deal. Usually in a case like this the bonds are sold but the funds are kept in escrow and not released until the title or the deal has passed all legal issues. That being the case the money would not be lost because the funds would not be released from escrow until it was prudent and safe to do so, this would in my view cause the vendor (NHL) a big problem as the bonds would have been sold but the NHL would not be given the funds until the company that marketed the bonds was sure that the buyer could get good title (no encumbrance on the title). If the funds were released from escrow and GWI won its suit my view is that the bond purchasers would be able to file a law suit against the firm that marketed the bonds. The US loves law suits so I think this is the issue and the reason that GWI is so strong right now and why the buyer tried to sweeten the deal. With GWI in the way they can sell the bonds but not release the funds until the court case is solved and this takes time. There is no logical reason for a bond house to want to waste its time and market a bond issue that they may not get paid for (if the funds are returned to the buyer and never given to the seller the bond house makes no commission)" Your uncle is correct. The bonds are not junk. The investors would not lose there money. However their money would be tied up until the court gives a decision. This is enough for any investor to avoid buying them. NO CHANCE IN HELL that these bonds will sell. Don't listen to that idiot Dreger because he absolutely knows nothing about investing. There are no bond interested people lined up for them.
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Post by Grumpz on Mar 23, 2011 17:47:40 GMT -5
That comment didn't hit me as hard as the once the bonds sell, the deal is closed. There would be no injunction comment.
It's the first time I've heard that from someone who is not a member of this forum and it's coming from GWI.
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Post by John on Mar 23, 2011 17:54:00 GMT -5
Now do you think the NHL is really going to hand over the franchise to Hullsizer and say "yeah, just go ahead and give us our money once the whole lawsuit thing is done. If it doesnt go through thats no big deal, we will just pay the losses and up the asking price to 300m" hmmm....maybe the Yotes could end up in Hamilton after all lol
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Post by bcmike on Mar 23, 2011 18:01:43 GMT -5
That comment didn't hit me as hard as the once the bonds sell, the deal is closed. There would be no injunction comment. It's the first time I've heard that from someone who is not a member of this forum and it's coming from GWI. The comment above suggests they wouldn't need to as the bond money would be tied up in escrow and the deal could not complete. Despite what the NHL says i think there is also no confidence in the cities case.
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Post by LT on Mar 23, 2011 19:30:53 GMT -5
Actually my uncle explained to me that his comment was wrong. (my uncle is in the financial/investment sector and extremely successful so he knows his stuff) Here is what he told me. " On the bonds I do not understand how on earth they can become worthless. No self respecting bond house will release the funds from the sale until the legal issue is solved hence the way GWI kills the deal. Usually in a case like this the bonds are sold but the funds are kept in escrow and not released until the title or the deal has passed all legal issues. That being the case the money would not be lost because the funds would not be released from escrow until it was prudent and safe to do so, this would in my view cause the vendor (NHL) a big problem as the bonds would have been sold but the NHL would not be given the funds until the company that marketed the bonds was sure that the buyer could get good title (no encumbrance on the title). If the funds were released from escrow and GWI won its suit my view is that the bond purchasers would be able to file a law suit against the firm that marketed the bonds. The US loves law suits so I think this is the issue and the reason that GWI is so strong right now and why the buyer tried to sweeten the deal. With GWI in the way they can sell the bonds but not release the funds until the court case is solved and this takes time. There is no logical reason for a bond house to want to waste its time and market a bond issue that they may not get paid for (if the funds are returned to the buyer and never given to the seller the bond house makes no commission)" John I'm not sure what reference you commenting on about the bonds being worthless but the way I understand is if it gets to the point of passing the legal issues, the way they become junk is if the team fails be it bankrupt or leaving, the city may not have the funds to pay the bond holders. That's where the risk comes in. The only risk legally is that the purchasers may have their money tied up until the court rules and only get their investment back without making any return. No expert by far but that's the way I understand it.
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Post by John on Mar 23, 2011 23:09:10 GMT -5
The one I'm referencing was in the interview with Clint Bollock from GWI. He implied that if GWI sued and won that the bonds would then be worthless.
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