MEC to be delisted

[ponypro]

http://news.bloodhorse.com/viewstory.asp?id=43635

I cant imagine how Bob Jim Jones Evans spins this in the board room. This was incredibly horrible due diligence. That cool-aid he is passing around is tasting progressively strange. Remember the CDI mantra

1. decreasing handles = good
2. smaller market share = good
3. the betters are our enemy
4. creating chaos and pissing off everyone in the industry = good

[Zman179]

Your title is misleading. MEC is in danger of being delisted if the value of their stock doesn't trade for at least $1 per share over ten consecutive trading days. They have 180 days in order to meet NASDAQ's requirements.

[onefast99]

Your title is misleading. MEC is in danger of being delisted if the value of their stock doesn't trade for at least $1 per share over ten consecutive trading days. They have 180 days in order to meet NASDAQ's requirements.
Thank you for posting this information, it seems when a company is delisted it will eventually fail. That is not the case at all. Yes it is harder to raise capital but frank has several other cash cows that he may need to use to infuse monies into this one.

[alysheba88]

Thank you for posting this information, it seems when a company is delisted it will eventually fail. That is not the case at all. Yes it is harder to raise capital but frank has several other cash cows that he may need to use to infuse monies into this one.

You think its a positive sign? Do you know what happens to many companies once they are delisted?

[onefast99]

You think its a positive sign? Do you know what happens to many companies once they are delisted?
He is not going to let this fail. The ramifications throughout the horse world would be devistating, think about that first before putting the nails in this companies coffin.

[alysheba88]

He is not going to let this fail. The ramifications throughout the horse world would be devistating, think about that first before putting the nails in this companies coffin.

Just to be clear here. Dont accuse me of putting nails in any companies coffin.

[onefast99]

Just to be clear here. Dont accuse me of putting nails in any companies coffin.
That statement is not directed at you, relax its to early in the day to get your blood pressure up over this subject. If you felt that was directed at you I am sorry. Lets all hope something good comes out of the Magna mess we dont need anymore negative press in this industry.

[lamboguy]

look at their price! that one looks like a cinch for delisting.

[Kelso]

Lets all hope something good comes out of the Magna mess we dont need anymore negative press in this industry.


Stronach seems to be at the core of much of the industry's bad press over the past year or two. Is there a track he's actually turned into a better place to watch and wager on horse races? I think the best that could come of his situation is for the market to run him out of the racetrack industry.

I don't care what happens to his stock price, but I hope he confines his future t'bred activities to horse - not track - ownership.

It's long past time for him to sell all his tracks to people who know how to run them and who understand what they're buying. If that means he takes a bath on the sales prices ... it's his own fault.

[PaceAdvantage]

Thank you for posting this information, it seems when a company is delisted it will eventually fail. That is not the case at all. Yes it is harder to raise capital but frank has several other cash cows that he may need to use to infuse monies into this one.There's a reason nobody wants to own his stock. What do you think that reason might be? That it's a healthy, thriving company? Or a company on the edge of a cliff?

[onefast99]

There's a reason nobody wants to own his stock. What do you think that reason might be? That it's a healthy, thriving company? Or a company on the edge of a cliff?
I'm curious how the stock relates to the running of GP seems no one here wants to answer that, so you brought it up now whats the answer? There is none. Many stocks have been delisted, gone bankrupt, emerged from bankruptcy with a new plan and have done well, if anyone has a little bit of sense they would realize that as real estate holdings the facilities are worth very good money. As racetracks being run by people who do not know how to cater to the betting public they are worthless!

[alysheba88]

Its not about assets having "worth". Its cash flow and debt service. You cant just ignore either. Thats why companies and people go bankrupt. Not because they dont have assets

[garyoz]

There are typically three things that put a company in receivership. Meeting interest expenses, paying down debt maturities as defined by the covenants of loan agreements, or having debt acceleration due to debt covenant violations. There are plenty of assets (real estate, goodwill for example)--just look at NYRA. One of the risk factors is that vendors and customers don't want to get caught up in a reorganization, even when there is adequate asset coverage--check out the posts by Ernie Dahlman and NYRA on this board. They stop doing transactions with the company. Chapter 11 is never pretty.

Also given the state of the Auto supply industry--I question how much cash the Manga parent company would have available to put into MECA.

One other point, the majority of stocks that trade down below $5/share are not viable in the long term.

[onefast99]

Its not about assets having "worth". Its cash flow and debt service. You cant just ignore either. Thats why companies and people go bankrupt. Not because they dont have assets
" net worth" is what the bk courts look at first prior to letting you go bankrupt. Please google this subject a bit more before you come on and pretend to be a bankruptcy attorney. The fact remains that magna may still be able to sell off assets to keep GP going as it is his "baby". The stock being delisted will have no bearing on GP's ability to be profitable, and if you are saying that it is, your wrong.

[alysheba88]

" net worth" is what the bk courts look at first prior to letting you go bankrupt. Please google this subject a bit more before you come on and pretend to be a bankruptcy attorney. The fact remains that magna may still be able to sell off assets to keep GP going as it is his "baby". The stock being delisted will have no bearing on GP's ability to be profitable, and if you are saying that it is, your wrong.

So now I am pretending to be a bankruptcy attorney because I mentioned liabilities and cash flow in response to your posts about assets alone?

And before it was a stock broker?

Lets stop with the nonsense and just discuss like adults

As far as being "wrong" you sure can read alot into a post.

I dont see delisting as anything good.

[garyoz]

" net worth" is what the bk courts look at first prior to letting you go bankrupt. Please google this subject a bit more before you come on and pretend to be a bankruptcy attorney. The fact remains that magna may still be able to sell off assets to keep GP going as it is his "baby". The stock being delisted will have no bearing on GP's ability to be profitable, and if you are saying that it is, your wrong.

You don't get permission from a bankruptcy court to go into bankruptcy. that's ridiculous. You file bankruptcy (ch. 11 reorganization, ch.7 liquidation) with the court. Bankruptcy is a corporate decision. I have been involved with many corporate bankruptcies and distressed securities.

MECA can decide to sell off assets, but it is almost certainly organized with each track as a separate operating entity because of state regulation, that will slow down the process.

But, courts do not determine solvency. Corporation seek protection in order to buy time and work out deals with creditors. Equity (common stock) goes to zero. The court ajudicates the various claims after a Chapter 11 filing.

[onefast99]

You don't get permission from a bankruptcy court to go into bankruptcy. that's ridiculous. You file bankruptcy (ch. 11 reorganization, ch.7 liquidation) with the court. Bankruptcy is a corporate decision. I have been involved with many corporate bankruptcies and distressed securities.

MECA can decide to sell off assets, but it is almost certainly organized with each track as a separate operating entity because of state regulation, that will slow down the process.

But, courts do not determine solvency. Corporation seek protection in order to buy time and work out deals with creditors. Equity (common stock) goes to zero. The court ajudicates the various claims after a Chapter 11 filing.
The court must approve any bk plan, whether it is corporate or personal. For someone that has done a lot of "corporate bankruptcies and distressed securities" work why even mention a chapter 7 or for that matter a chapter 13 as they are personal only? I guess you did that to put some beef into your post. I have no knowledge of the corporate laws as they relate to MECA and how they would even pursue protection if things went that bad. But I do know that the court must approve the bankruptcy plan and that is all I said.:faint: Maybe it is better to see if this actually happens, I dont think they will ever file a chapter 11.

[onefast99]

So now I am pretending to be a bankruptcy attorney because I mentioned liabilities and cash flow in response to your posts about assets alone?

And before it was a stock broker?

Lets stop with the nonsense and just discuss like adults

As far as being "wrong" you sure can read alot into a post.

I dont see delisting as anything good.
Your right we both read into the posts and honestly its not worth discussing anymore because they will not file a chapter 11 anytime soon.

[garyoz]

The court must approve any bk plan, whether it is corporate or personal. For someone that has done a lot of "corporate bankruptcies and distressed securities" work why even mention a chapter 7 or for that matter a chapter 13 as they are personal only? I guess you did that to put some beef into your post. I have no knowledge of the corporate laws as they relate to MECA and how they would even pursue protection if things went that bad. But I do know that the court must approve the bankruptcy plan and that is all I said.:faint: Maybe it is better to see if this actually happens, I dont think they will ever file a chapter 11.

They approve a bankruptcy plan when they come out of reorganization, not before. That is the point. You implied the court would stop the filing of chapter 11 apriori on the basis of the strength of underlying assets. If you want to get educated on NYRA's bankruptcy read Ernie Dahlman's posts on this board. They have plenty of asset protection--just had problems with operating capital. BTW, corporations can elect a Chapter 7 filing. http://www.sec.gov/investor/pubs/bankrupt.htm

[Kelso]

You don't get permission from a bankruptcy court to go into bankruptcy. that's ridiculous.


Gary,
Bankruptcy involves protections from creditors that don't exist in the normal course of business. Isn't it correct that a court must first determine that a filer has met certain conditions, as set forth in statutes, before a party is considered to be "in bankruptcy?" (Thinking here of the common newspaper phrase "seekning protection under the bankruptcy laws." If the phrase is accurate, "seeking" doesn't mean automatically obtaining.)

My generalized understandings are those of a barroom ... not a real ... lawyer. :confused:

[onefast99]

BTW, corporations can elect a Chapter 7 filing. http://www.sec.gov/investor/pubs/bankrupt.htm
Only if assets are pledged on a personal basis may this occur. The majority of corporate filings are chapter 11. And as you know due to the bankruptcy laws being re-structured in 2007 bk 7's are a rarity.

[richrosa]

Only if assets are pledged on a personal basis may this occur. The majority of corporate filings are chapter 11. And as you know due to the bankruptcy laws being re-structured in 2007 bk 7's are a rarity.

Those were individual bankruptcy laws, not corporate.

A Chapter 11 filing is a petition to the court, which is generally a rubber stamp if the company shows the court that it is technically insolvent. A corporation can be given Chapter 11 status, then later "reorganized" after a plan is submitted showing how it plans to repay, or otherwise deal with the pre-petition debt. The court then decides whether the reorganization plan is fair to all the parties involved, especially after hearing the opinion of the pre-petition creditors group, and will grant or stay the petition based on the various parties input.

[onefast99]

Those were individual bankruptcy laws, not corporate.

A Chapter 11 filing is a petition to the court, which is generally a rubber stamp if the company shows the court that it is technically insolvent. A corporation can be given Chapter 11 status, then later "reorganized" after a plan is submitted showing how it plans to repay, or otherwise deal with the pre-petition debt. The court then decides whether the reorganization plan is fair to all the parties involved, especially after hearing the opinion of the pre-petition creditors group, and will grant or stay the petition based on the various parties input.
That is what I said, chptr 13 and chptr 7 laws were re-written to keep people from abusing the chptr 7 filings. Thanks for the info on the corp bk law.