At close of business today, Jim Weissenborn will know whether or not WFF has decided to grant an extension of the forbearance agreement. Per the November 18, 2010 newsletter:
“The current forbearance agreement ends November 30, 2010. Mackinac Partners is cautiously optimistic that if additional progress is made, Wells Fargo is likely to extend this period. There is, however, a risk that Wells Fargo will not grant a further extension or that other litigation will force R.E. Loans to seek chapter 11 protection.”
The threats made by Weissenborn are real. If WFF doesn’t extend, Chapter 11 is the likely course of action. If litigation concerns (as brought to light by “Researcher“) become overbearing, Chapter 11 is again the likely course of action.
So what is the best case scenario? We feel that an extension of the forbearance agreement at the very least extends the life of the fund, though it gives everyone but us a chance to lick up the gravy, thereby reducing our supposed return. An extension gives Mackinac time to sell off properties from the bucket list in an “effort” to whittle down the amount due WFF. The problems are voluminous, as are the REL excuses. The sales aren’t happening, prices are low, etc.
From the noteholder perspective, we still don’t know how OUR money is being spent (see Lend, Inc., retainers paid to Mackinac and others, litigation expenses…yes, our money is being spent to defend Collins v Ng and Stewart v Ng).
Back to the main point, though. Today is the day that could possibly dictate whether we will experience a recovery of anything at all (e.g. $0.10 on the dollar) or nothing at all ($0.00 on the dollar). Our fate is in the hands of others, which could be a very bad thing given Weissenborn’s insistence on securing ANOTHER LINE OF CREDIT further diluting our already diluted investment. We have still not heard a peep from the purported Ad-Hoc Creditor’s Committee and we can presume this will not change (hint, they’re not here for us, they were put in place to serve the interests of the Ngs).
What are the odds that Weissenborn and friends will post an update to the REL website? Slim to none is a good bet.
What’s next, people?