Recently I wrote about Fieldstone Investment Corp (FICC), which was getting bought out at $5.53 per share by C-BASS. I did say that the deal would go through because Fieldstone had no negotiating power in the deal as they could possibly go bankrupt if they didn’t accept the $5.53. What I didn’t realize was that the offering price would be lowered.
Current Outlook
My current outlook on the stock is that at $3.33 you are getting a wide arbitrage discount. The deal is expected to close during the second quarter of 2007 so you should have market beating returns at these levels. I am doubling up on my investment in FICC
Eric Schleien
zachary
teenmoney
josh4580
Carlton
I NEED A LAYWER !!!! IS THERE A LAWYER IN THE HOUSE ???
From 8-K filed on March 22
The Amendment, among other things, also modified the definition of the term “Material Adverse Effect on the Company” in the Merger Agreement to exclude any breach of any representation, warranty, covenant or agreement or the occurrence of any “default” or of any “event of “default” under Fieldstone’s existing financing facilities from the events or circumstances that may otherwise be deemed to give rise to a material adverse effect on Fieldstone’s and its subsidiaries’ business, results of operations, properties, financial condition, assets or liabilities, taken as a whole. Further, the Amendment reduced the amount of borrowing capacity under Fieldstone’s existing financing facilities to be extended for at least 90 days after the effectiveness of the proposed merger as a condition to C-BASS’s obligation to complete the merger under the Merger Agreement. Moreover, the Amendment modified the operational covenant under the Merger Agreement requiring Fieldstone and its subsidiaries to operate in the ordinary and usual course of business consistent with past practice pending the completion of the proposed merger by providing that a determination of what is in the “ordinary and usual course of business consistent with past practice,” solely for purposes of such covenant, is to be made by reference to the operation of Fieldstone’s and its subsidiaries’ business as of the date of the Amendment and taking into account the recent disruption in the subprime mortgage market.
Completion of the proposed merger remains contingent on various closing conditions, including regulatory approvals, certain consents of third parties, the continued effectiveness of certain employment and retention agreements, the transfer of servicing of Fieldstone’s mortgage loans to C-BASS, the extension of certain of Fieldstone’s financing facilities, the absence as of the closing of any material adverse effect on Fieldstone and the approval of holders of a majority of Fieldstone’s outstanding common stock. Fieldstone’s stockholders will be asked to vote to approve the proposed transaction at a special meeting to be announced.
SOME ONE PLEASE PARSE THROUGH THIS LANGUAGE TELL US YOUR OPINION … ARE FICC SHAREHOLDERS GOING TO RECIEVE THEIR $4?
DOES ANYONE HAVE A CLUE WHEN THE MONEY WILL BE DISBURSED?
FICC MANAGEMENT HAS A FIDUCIARY DUTY TO FICC SHAREHOLDERS, ALTHOUGH THE AGREEMENT STATES THAT FICC MANAGEMENT WILL BE WORKING FOR C-BASS. ACCORDING TO THE FILING THE ASSETS THAT WHERE SOLD WHERE SOLD AT “MARKET VALUE”. IS FICC MANAGEMENT DONE SELLING OF CHUNKS OF THE COMPANY TO C-BASS PRIOR TO MERGER OR CAN WE EXPECT MORE SALES AND A LOWER PRICE FOR STOCK HOLDERS? IS THERE A STOCK HOLDER COMMITTEE IN PLACE? WHO IS LOOKING OUT FOR THE STOCK HOLDER’S INTERESTS?
THE SEC NEEDS TO LOOK INTO THIS AND A LAW SUIT MIGHT BE IN ORDER? THERE SEEMS TO BE WAY TO MUCH HAND HOLDING BETWEEN C-BASS (THE PARENT as described in the 8K) and FICC (THE CHILD) IS THERE A LAWYER IN THE HOUSE …????? HELP !!!