Walter’s letter to RE Reno investors, dated November 11, 2010, states that the sale of the Siena “has not closed as of November 15, 2010.” That’s just the beginning of the absurdity contained within Walter’s letter, found HERE.
Walter states that “it appears likely that the aggregate distribution to R.E. Reno from the sale proceeds will be in the range of $2 million to $2.5 million.” Is Walter so senile as to actually believe that RER will command over half of the sale price when companies like IGT, Konami Gaming and the various city and state agencies are all vying for the proceeds? This is just another case of half-truths and nonsensical blue sky B.S.
In order to soften the blow to the hard working, earnest RER investors, Walter goes on to stick a hot poker in their eyes with this statement:
“While this is very disappointing to all concerned, R.E. Reno investors have received over the life of the investment aggregate distributions of $32,250,000.”
Absolutely absent from this insincere letter is what happens to the RE Loans investors who put in $21 million of their own money into this failed hobby. Walter, what is the return on our $21 million investment?
Walter then takes a swing at his formerly favored son Barney.
“Barney Ng has apparently informed some of you that counsel for R.E. Reno was some how responsible for the truncated marketing process or the failure of WGN to raise sufficient capital to continue operating The Siena. He has apparently indicated that counsel refused to meet with a proposed “white knight” who was purportedly offering to provide new senior secured debt financing, which would have subordinated R.E. Reno’s mortgage, to fund WGN’s continuing losses. These statements are untrue. At no tie did R.E. Reno or its counsel refuse to meet with either WGN or any proposed investor. R.E. Reno informed WGN and the proposed investor that R.E. Reno was prepared to meet, but absent something extraordinary, R.E. Reno would not be willing to subordinate its debt to new loans that would be used to fund ongoing losses. R.E. Reno asked for a business plan and suggested that at least part of any new money would probably have to be invested as equity, junior to R.E. Reno’s secured debt. No such business plan was ever submitted by WGN or the proposed new financing source.”
IF Walter can be believed, and that’s a BIG IF, Barney sought to subordinate his investors again simply to continue soaking his investors for everything they had. Another WFF bailout would have put millions in Barney’s pockets, allowing his casino joyride to continue for some amount of time.
Walter spends a page and a half playing the blame game and pointing his finger at everyone but himself. He takes no responsibility for his actions and he fails to recall the personal guarantee he signed to every single one of his RER investors.
P.S. Bruce is not absolved here, either. He was the one who sweet talked people into putting their money into this crock.