What follows is a warning/advisement/etc. from the trustee on how the Contrarian offer works in case you are considering accepting their offer.

From memory, if you take the Contrarian offer all distributions after Dec 28th of last year are theirs to keep (I may be off on the date – but  the point is the same).  See below from the trust manager.

 

The Trust has been made aware of a tender offer by an affiliate of Contrarian Funds, L.L.C. (“Contrarian”) to purchase up to 2,858,405 of the outstanding Class A Interests for $10.00 per Class A Interest, without interest (the “Tender Offer”). HOLDERS OF CLASS A INTERESTS WHO HAVE TENDERED OR ARE CONSIDERING WHETHER TO TENDER THEIR CLASS A INTERESTS TO CONTRARIAN ARE ADVISED THAT, UNDER THE CURRENT TERMS OF THE TENDER OFFER AS DISCLOSED IN PUBLIC FILINGS BY CONTRARIAN, THE OFFER PRICE IS SUBJECT TO DEDUCTION IN THE EVENT OF DISTRIBUTIONS BY THE TRUST DURING THE TENDER OFFER PERIOD.

AS A RESULT, TENDERING HOLDERS MAY RECEIVE FROM CONTRARIAN AN OFFER PRICE OF ONLY $5.50 PER CLASS A INTEREST.

Published by Greg W. Anderson

CEO and founder of Balanced Financial Inc.

3 thoughts on “Input for you on the Contrarian offer”

      1. There is a new document posted on the liquidation Web site as of 1/13/2020. In part:

        Reasons for the Recommendation of the Supervisory Board
        In evaluating the Offer, as recently amended, the Supervisory Board has consulted with the Trust’s management and
        legal and financial advisors. In the course of reaching a recommendation, the Supervisory Board reviewed and
        9
        evaluated a number of factors, each of which the Supervisory Board believed supported its unanimous determination
        and recommendation. Although the Supervisory Board is encouraged by the enhancement of Contrarian’s offer
        represented by Amendment No. 3, the Supervisory Board continues to recommend that holders not accept the
        Offer.
        The Supervisory Board’s recommendation is made for the following reasons:
        • An offer price of $10.00 per Interest (without reduction for the January 3 Distribution) remains, in the
        Supervisory Board’s view, substantially less than the value of the Interests that is implied merely by the
        value of the Trust’s net assets in liquidation, without attributing any value to potential future litigation
        recoveries by the Trust. Based on the Trust’s most recent financial statements, adjusted for the recent $4.50
        per Interest distribution, and the number of estimated Interests, each Interest has a current implied value
        of approximately $23.96 (and without attributing any value to potential future litigation recoveries by the
        Trust). Thus, the Contrarian offer of $10.00 per Interest is approximately 42% of the implied value of the
        Interests, attributing no value to potential future litigation recoveries.

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