Mar. 6 at 5:30 PM
$BHR Okay this liquidation got worse. We learned from the most recent SEC filing mgmt. has prioritized their
$500MM payment plus the pivot to individual asset sales vs. a company-sale is worse for us.
Why? a company wide sale is cheaper AND its his higher certainty of execution than a dozen individual sales. Under the old terms, in the event of a company sale the money goes to to debt, then to mgmt.
$500MM payment and whatever remains (
$0 to
$3) is going to us.
Now that their only petro-dollars back buyer has pulled out they're chasing a dozen individual sales which is more time-consuming, costly and higher risk of some 'left overs'. THE WORSE PART is they restruck the waterfall so that when a hotel sells the loans are paid and then all proceeds go to management until the
$500MM is satisfied, it is not pro-rata across the assets. If it all sells, we just wait longer. If it doesn't it increases the odds we are not paid and more $ is absorbed in the delay. RUN AWAY!
