If Fortress can cash $170M in 2 part mgt fee 2019 + Dividends to externally manage $NRZ New Residential Investment Corp. What will they do owning 80% of Novation Co $NOVC? Fortress/EJF Capital Emanuel J Manny Friedman (ex Founder of FBR) are the investors hidden by CDOs Taberna CDOs I and II by Fortress & Kodiak CDO I by EJF Capital. Softbank $SFTBY owns Fortress & White Mountains Capital $WTM sub Kudo Mgt Inv owns EJF Capital. Frank Bazos Special Advisor to $WTM former VP M&A for $WTM was briefed by NOVC CEO now he via $WTM/EJF www.ejfcap.com owns 10M NOVC Common and Fortress owns 21M NOVC common hidden behind CDOs. They also own the only Sr Debt to exit Ch 11 and have worked with NOVC Board to gain the 31M common with this Sr Debt effectively a Ruse. NOVC Board also use Sr Debt to take 16M RSU converting their board compensation at the low share price which is created by this bogus debt.
ex Goldman Sachs Quant said It's not the rats who 1st abandon a sinking ship but it’s the crew that know how to swim. RE Novation Co $NOVC
Novation Companies Inc. $NOVC Board of Directors led by Dynex Capital $DX investors Barry Igdaloff, Chairman & Howard Amster along with Igdaloff/Amster's co investors; Chuck Gillman/Jeff Eberwein/4 appointees to the board (pointer, Keddie, Eriksen and Pearse) that have driven $NOVC share price to nothing while at the same time converting their Board Compensation into 16M RSUs using their engineered share price.
Igdaloff, Amster have used Form 4s to camouflage most of their 40M common ownership in $NOVC. Evidence shows Igdaloff Form 4s were NOT Sales on Exchange but private transfers (see Form 4s fine print on the back). Another investor an attorney stated Barry Igdaloff had transfer millions of $NOVC common to his 5 children for estate tax reasons. This had been proven by a high-profile Value HF. David Pointer 4M Form 4s are laundering his shares back to his masters. Chuck Gillman, Jeff Eberwein who Nov 2014 to Spring 2015 helped Igdaloff/Amster to oust from $NOVC Board; Lance Anderson (stripped of his 4.3M Stock Options) his mentor Gregory Barmore ex CEO of Genworth, and their 2 appointees Mehrer and Burtscher. THESE ARE FACTs
Barry Igdaloff and Howard Amster have not only camouflaged most of their 40M shares via Form 4s but they have used RSUs given departed "Do nothing Board appointees" to camouflaged millions of $NOVC common. In addition these Board Members of $NOVC conceal the ID of Note Holders Fortress, Wes Edens/Peter Briger Co CEOs and EJF Capital Manny Friedman/Neal Wilson Co CEOs behind CDOs Taberna/Kodiak thus failing to disclose not only Barry Igdaloff, Chairman, Howard Amster past relationship with Wes Edens from Dynex Capital $DX restructuring but the FACT CDOs Fortress/EJF Capital own both at same time $NOVC only Sr Debt to exit Ch 11 with all their back interest paid up and compounded $5.8M + $500K Non Disclosed Penalty for no cram down.
Note Holders Fortress/EJF Capital have been paid est $11M cash mostly interest PLUS 27% of NOVC Common 31.3M shares at less then one penny for NO CRAM DOWN REDUCTION IN PRINCIPLE (inside and months after exit Ch 11). This could not have happened without Wes Edens' past relationship between Barry Igdaloff and Howard Amster. Wesley R. Edens made $NOVC Board of Directors a fortune at Dynex Capital $DX 2000-03. These NOVC Board members cash .13 cts per share every month in DX Common Dividends. I can only assume the $11M cash plus 31.3M NOVC common are pay back for Fortress' Wes Edens help at $DX. FACT
Barry Igdaloff's own mouth he described how Wes Edens flew to Columbus OH as COB of Capstead Mortgage $CMO now traded $FRBT which camouflaged Fortress' ownership of $DX. He described in detail how they removed Thomas Potts as CEO of $DX. Today Eric Hagen TOP TipRanks MREIT analyst calls $DX one of the top MREIT to invest in besides $NRZ which we appreciate is managed by Fortress. Todd Emoff Mr. Igdaloff's best friend per his book Guest in Nightmare (their story investing in Guest Supply) corroborated this story about Wes Edens separately.
This is one reason Novation Co $NOVC Board of Directors have failed to hold an annual meeting since 12.12.19. Two full years no Proxy 14A NO ANNUAL MEETING at $NOVC. This act has made it possible for Board's failure to disclose the above. I can only conclude $NOVC Board ex CEO, CFO and $NOVC have colluded with NOVC over paid Outside Auditor, CPA firm www.boulaygroup.com (top 100 per AICPA). Boulay via GAAS knows Fortress and EJF Capital own both NOVC only Sr Debt and 27% of NOVC Common. Boulay Group, Rich Lehman PIC on $NOVC account, thus know all about the CCR as they fail to disclose $NOVC future plans but rather focus on VALUE of CCR per Section 5.04 of Service Rights Transfer Agreement see Exhibit 2.1 of NOVC 10Q filed 2007 Q3. Value is N/A and Boulay Group and NOVC Board know this FACT. They only thing that matters is what they plan on doing with the rights that control the future use of rich, seasoned collateral assets to BILLIONS (see $NFI Bond Remittance Reports on Edgar Reports). In the past Fortress, EJF Capital, Dynex Capital and $NRZ New Residential Investments are world class investors in CCR. List to Shareholders Calls at $NRZ and the CEO references to CCR. I have reviewed this issue with Michael Huang Quant Portfolio Manager at $NRZ (I cold called NRZ and spoke to Huang for months being told these collateral assets can be leveraged and used in resecuritization). Once Mr. Huang understood my relationship with Edens co investors he abruptly ended what had been a very pleasant dialogue. Further I have corroborated this issue with former CEO of Saxon Capital $SAX sold pre financial meltdown to Morgan Stanley for 760M. This high-quality pro confirmed 100% in my thesis. This person is retired but he explained how Dynex Capital NYSE $DX and Saxon Capital had both been spun out of the same public company. He worked with both of $NOVC Founders Lance Anderson and Scott Hartman. He referenced Scott Hartman ex CEO of $NOVC has one of the smartest people he has ever worked with. Keep in mind Saxon Capital bought all of $NOVC MSR Mortgage Service Rights from NOVC sub $NFI aka Novastar Financial Inc. $NOVC former MREIT traded on NYSE as $NFI sold all their MSR Mortgage Service Rights see P&S for the deal defined in “Service Rights Transfer Agreement Exhibit 2.1 of NOVC 10Q filed 2007 Q3”. This person understood full well the importance of CCR cleanup call rights Sec 5.04. This makes $NOVC Board of Directors Barry Igdaloff, Howard Amster fraudsters of the highest order.
So why have world class experts including their helpers Mass Mutual and sub-Barings 19.3M shares and Jefferies $JEF not sold their $NOVC common shares. Why have they camouflaged their common equity ownership via Form 4s and CDOs aka the Only Note Holders? Even Brian Friedman President of Jefferies $JEF last fall admitted to me the Partners still owned $NOVC and that I should touch base if NOVC filed a Proxy. Odd request as NOVC failed to file Proxy since 2019 for over 2 full years.
In the name of forgiveness $NOVC Board Chairman Barry Igdaloff, Howard Amster should file a statement immediately. Unfortunately, if we look at their past restructuring of $DX with Fortress, we will understand they are puppets protecting their Masters Fortress and EJF Capital. Mass Mutual and Barings have sat on the bench allowing them to take 47M of their 71M NOVC common at pennies. Why have Mass Mutual and Barings remained silent? Is it a quid pro quo understanding Note Holders have agreed to invest in NOVC PS Series F Shelf Offering? It appears they have provided these investors at least tacit consent or have another unknown reason. Fortress' greedy leadership will probably keep pulling the strings at $NOVC until they buyback Fortress from Softbank. Masa Son CEO of Fortress just filed the worse $SFTBY performance in it's history.
Understand if they split $NOVC into two tax free companies’ 1st www.healthcare-staffing.com with $730M NOLs and 2nd a tax exempt MREIT relaunch $NFI ex NYSE using the CCR we are looking at billions in capital plus hundreds of millions annually in dividends and management fees. My last post showed est 41 per share just for the MREIT like $NRZ, $SNR and $GCI MREIT spun out of Newcastle $NCT before changing name to Drive Shack $DS which kept 160M NOLs from $NCT.
REASON FOR THEM TO STALL UNTIL THEY BUYBACK FORTRESS FROM SOFTBANK?