Latest News From The Receiver
18/10/09 13:43
October 9 brought the latest report from the Receiver appointed to gather and distribute Medical Capital’s assets. White it certainly appears that the Receiver is working hard, the news doesn’t seem much more promising than it had been in September, when he issued his last report.
The nature of a receivership is that the receiver is left trying to untangle a terrible mess and make the best of a bad situation. While receivers certainly try to maximize the value of the assets in their charge, those assets typically go for “fire sale prices.” The situation is no different here.
If one were to add up the face value of the investments and loans Medical Capital made, the total is $475 Million. However, it seems exceedingly unlikely that the total collections will actually approach that sum. Indeed, the net collections as of the time of the October 9 Report were $2.5 Million. That is a long way from the $1 Billion the Receiver reported was due in principal payments to investors.
The Receiver may well end up producing some money for the investors. But it is going to take a long time and the total recovery may well end up being pennies on the dollar. If you’re interested in trying to recover your losses sooner rather than later, please call us at 888 999 9396, or send an email.
If you would like to read older posts, please click on the archive links to the right. To return to this entry, hit the “back” button on your browser.
The nature of a receivership is that the receiver is left trying to untangle a terrible mess and make the best of a bad situation. While receivers certainly try to maximize the value of the assets in their charge, those assets typically go for “fire sale prices.” The situation is no different here.
- While Medical Capital I, II and III invested a total of $81.4 Million in IHHI, a hospital group in Southern California, the Receiver is now contemplating selling the interest for a total of $55 Million, which sum will be paid over 24 months. Note that Medical Capital’s Net Collateral Coverage Ratio reports made as late as June 30, 2009, showed a value of $175.2 Million, rather than the $81.4 Million actually owed by IHHI to Medical Capital.
- Medical Capital’s loan of almost $30 Million to an assisted living facility in Thousand Oaks, California went into default. Medical Capital accepted a deed in lieu of foreclosure. The Receiver is now contemplating selling the property for $14.4 Million.
- The infamous $4.5 Million yacht Medical Capital bought is now listed for sale with an initial asking price of $2.995 Million.
If one were to add up the face value of the investments and loans Medical Capital made, the total is $475 Million. However, it seems exceedingly unlikely that the total collections will actually approach that sum. Indeed, the net collections as of the time of the October 9 Report were $2.5 Million. That is a long way from the $1 Billion the Receiver reported was due in principal payments to investors.
The Receiver may well end up producing some money for the investors. But it is going to take a long time and the total recovery may well end up being pennies on the dollar. If you’re interested in trying to recover your losses sooner rather than later, please call us at 888 999 9396, or send an email.
If you would like to read older posts, please click on the archive links to the right. To return to this entry, hit the “back” button on your browser.