15 November 2009
The Receiver's November Report
21/11/09 14:46 Filed in: Receiver Report
The Receiver issued his latest report on November 10. There are no good surprises to be found in the report. Instead, it appears that he's working hard to collect and liquidate assets as best he can. But the results will still likely yield but pennies on the dollar for the Medical Capital investors.
Highlights of the report include:
The conclusion to be drawn from the latest report is simple: it doesn't matter how terrific a job the Receiver does, he can only work with what he has. He's indicated that Medical Capital owes $1 Billion to its investors. The company’s books show a total asset base of $1.1 Billion. But of that sum, $542 Million of assets don't exist. That leaves, at best, $552 Million in assets to be liquidated. If history is a guide, we can expect the Receiver to collect half of that sum, or less, on a gross basis. The payment of his fees, professional fees and expenses will leave a modest sum for the investors.
If this isn't how you expected your Medical Capital investment to work, 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.
Highlights of the report include:
- He collected almost $20 Million in cash since he was appointed. He has spent almost $3 Million for the operating expenses of the receivership estate. No professional fees have been paid.
- He finalized the sale of a retirement/senior living facility, netting $13,753,451.60 of the $25.2 Million due from the company.
- He's trying to sell another medical care facility for a gross of $9.5 Million. The original debt was $36.3 Million.
- The view of the likelihood of the collection of medical accounts receivable - which many investors believed to be the core aspect of Medical Capital's business - hasn't changed. According to the Receiver, "Of the $80,637,383 of real accounts receivable, a mere $6,114,233 are under 180 days old and therefore potentially collectible."
- The infamous yacht, which cost $4.5 Million, is now the subject of negotiations for sale somewhere less than $2.9 Million.
The conclusion to be drawn from the latest report is simple: it doesn't matter how terrific a job the Receiver does, he can only work with what he has. He's indicated that Medical Capital owes $1 Billion to its investors. The company’s books show a total asset base of $1.1 Billion. But of that sum, $542 Million of assets don't exist. That leaves, at best, $552 Million in assets to be liquidated. If history is a guide, we can expect the Receiver to collect half of that sum, or less, on a gross basis. The payment of his fees, professional fees and expenses will leave a modest sum for the investors.
If this isn't how you expected your Medical Capital investment to work, 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.