Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
I'm curious what people think about the timing of the going-private transaction. I just noticed that when Abax and others filed the "Commitment Letter" with the SEC at the end of December 2012 (which provides for a $35 million mezzanine loan, on top of the larger China Development Bank loans), they included a termination date of March 30, 2013. Now of course they could hit March 30 and extend the agreement, but if they wrote in March 30, I suspect that the partners thought the deal would be done by then. And given that they set that date at the end of December, they may have a bit more information on the status of the deal than we do. Or perhaps they just wanted to pressure the Special Committee not to delay its decision. BUT, I have no experience with this sort of agreement or deal, so I welcome any thoughts, contrary or otherwise.

Here's the link to the agreement and the language:

http://www.sec.gov/Archives/edgar/data/1398551/0000909518120...

Section 2. Commitment Termination

The Commitment Party’s commitment and other obligations set forth in this Commitment Letter will terminate on the earliest of (A) 30 March, 2013, (B) the date the Operative Documents become effective and (C) the date the acquisition agreement for the Transaction is terminated (such earliest date, the “Termination Date”). Before the Termination Date, the Commitment Party may terminate its commitment hereunder if any event occurs or information becomes available that, in its reasonable judgment, results in, or is likely to result in the failure to satisfy any condition set forth in Section 1.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.