mike channon´s windmill
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- 2 Jun 2008
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Prestwich_Blue said:The more I read about this approach the more it sounds like a vulture fund:projectriver said:They wont. Thats why this opportunist attempt to get the debt and then take control following breach or default is almost certainly doomed to fail.
Nice idea - as these sort of deals always are on paper.
A vulture fund is a private equity or hedge fund that invests in debt issued by an entity that is considered to be very weak or dying. The name is a metaphor comparing these investors to vultures patiently circling, waiting to pick over the remains of a rapidly weakening company or, in the case of sovereign debt, debtor country. Market practitioners prefer to refer to them as distressed debt or special situations funds.
Sounds less threatening than it did earlier today. The guy doesn't really have a track record of investing in or running clubs, more in the marketing arena. And he's gambling that he'll have H & G by the balls if this comes off and will be able to panic them into selling. The threat of pulling out if it's not done quickly sounds like double-glazing salesman talk. With the October deadline for calling in the loan approaching he must think he's got the upper hand but I suspect the Americans would rather go down with the ship than hand it over to him for far less than they think it's worth.
Good point and tbh I can´t see Hicks in particular being partial to having a gun held to his head by someone he sees as a chancer