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Re: MMLP reports tomorrow night MMLP was/is a drop down story benefiting its parent company, named something like Martin Management. By this time, I believe most of the parent company has been dropped down. The parent company's story is really sad or rotten, depending on who you are. The Martin family sold out of the parent at what turned out to be a seriously inflated price (in retrospect, at least). So who cares? That happens all the time. But they sold the company to the employee's ESOP, so the employees of the company got a royal screwing - as MMLP has tanked, so has the annual value of Martin Management, so whatever benefit they were promised with the ESOP was never realized. The bank that financed the ESOP is presumably also taking it on the chin but I feel less sympathetic towards the bank since it had a choice to lend the money or not. Anyway, the parent company needs cash to fund the annual interest expense/principal payments on the ESOP loan. I assume the money that the parent company got for the trucking division drop down went to the ESOP loan but that wouldn't come close to paying it off. So the family got out at much higher prices, and the bank and the employees are left holding the bag. It isn't hard to find the employees' litigation about this deal, but the last time I looked was probably 2 years ago so I don't know how the law suit worked out. But you're right - the parent needs whatever cash it can get from the distributions. They sure can't raise much money by selling their units. |
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Msg # | Subject | Author | Recs | Date Posted |
105332 | Re: MMLP reports tomorrow night | Q77 | 0 | 7/23/2019 3:46:14 PM |