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Post by Deleted on May 30, 2017 10:22:33 GMT -5
There's always the possibility that this is the prequel to taking MannKind private. Unfortunately the easiest way to do that would be a bankruptcy... I dont read this news leading to bk. You'd need an experienced financial person to lead the company through that process. MNKD would hire a outside company, no?
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Post by matt on May 30, 2017 10:33:30 GMT -5
I dont read this news leading to bk. You'd need an experienced financial person to lead the company through that process. MNKD would hire a outside company, no? An outside company to do exactly what? There are restructuring companies that specialize is keeping companies out of bankruptcy, and if it comes to that, those same companies are usually engaged by the estate to find a buyer or to conduct the auction for the pieces. Companies are required to file a "first day memo" which outlines for the court the company's view on what happened and why they wound up in court, and most of those memos disclose six months or more of involvement by a work-out firm trying to avoid bankruptcy. Nobody has mentioned it, but Deerfield may have a hand in this as well. When a company is insolvent (and legally MNKD meets the definition of insolvency in Delaware) the board has a fiduciary obligation to the corporation, not necessarily the shareholders. The board may feel that the time has come for them to take actions that protect the interests of creditors, even if that is to the detriment of shareholders, to avoid legal liability, and Deerfield might have been agitating for some action. These things all happen quietly behind the scene so there is no way to know for sure.
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Post by madog365 on May 30, 2017 10:41:17 GMT -5
MNKD would hire a outside company, no? An outside company to do exactly what? There are restructuring companies that specialize is keeping companies out of bankruptcy, and if it comes to that, those same companies are usually engaged by the estate to find a buyer or to conduct the auction for the pieces. Companies are required to file a "first day memo" which outlines for the court the company's view on what happened and why they wound up in court, and most of those memos disclose six months or more of involvement by a work-out firm trying to avoid bankruptcy. Nobody has mentioned it, but Deerfield may have a hand in this as well. When a company is insolvent (and legally MNKD meets the definition of insolvency in Delaware) the board has a fiduciary obligation to the corporation, not necessarily the shareholders. The board may feel that the time has come for them to take actions that protect the interests of creditors, even if that is to the detriment of shareholders, to avoid legal liability, and Deerfield might have been agitating for some action. These things all happen quietly behind the scene so there is no way to know for sure. Let's just get this on record shall we? Matt, do you believe that Mannkind is going to announce bankruptcy in the near term (1-3 months?)
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Post by seanismorris on May 30, 2017 10:49:57 GMT -5
I dont read this news leading to bk. You'd need an experienced financial person to lead the company through that process. MNKD would hire a outside company, no? Yes. Even if Matt was still there they'd need to hire someone. ---- I'm not saying there will be a BK imminent, just that it's a possibility. There is enough cash for a few months so there really isn't a need to declare BK today. But, I'm of the belief that the stock market is rigged so good news is probably more likely than a BK (looking at the recent stock action). Having Mike start his job by announcing a win would make for good PR. Another option is a buyout, moving production out of the US to reduce overhead would make sense. A buyer would have the resources to do that... investors would loose in this scenario. Until MannKind gives another update, I still think Matt stepped in it with Aegis... Perhaps, the Board got tired of Matt's excused also. ....... Anyone saying Matt's been doing a good job is delusional. It doesn't matter if he inherited a difficult situation, he's lost investors a boat load of money.
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Post by nadathing on May 30, 2017 11:13:07 GMT -5
MNKD would hire a outside company, no? Yes. Even if Matt was still there they'd need to hire someone. ---- I'm not saying there will be a BK imminent, just that it's a possibility. There is enough cash for a few months so there really isn't a need to declare BK today. But, I'm of the belief that the stock market is rigged so good news is probably more likely than a BK (looking at the recent stock action). Having Mike start his job by announcing a win would make for good PR. Another option is a buyout, moving production out of the US to reduce overhead would make sense. A buyer would have the resources to do that... investors would loose in this scenario. Until MannKind gives another update, I still think Matt stepped in it with Aegis... Perhaps, the Board got tired of Matt's excused also. ....... Anyone saying Matt's been doing a good job is delusional. It doesn't matter if he inherited a difficult situation, he's lost investors a boat load of money. Matt lost investors a lot of money. Al Mann lost a lot of our money with his poor decisions and inability to let go of power and hire a real CEO years ago. Are you as critical of Al for his poor management as you are of Matt's?
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Post by factspls88 on May 30, 2017 11:15:03 GMT -5
Was never a fan of Matt in the CEO role. He seemed like a nice guy and that's not what MNKD needed. IMO it comes down to two things 1) Matt did something to get fired (possibly Aegis) or something else 2) He quit and this the best way to keep the stock price from cratering. It will be interesting to see how the market digest the news not PM This has been in the works. Matt was not fired. Sounds like standard language for announcing the termination of employment to me.
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Post by uvula on May 30, 2017 11:19:24 GMT -5
We will never know how much worse things would have been if Matt refused to take the CEO role and MNKD was left with no one in charge. Therefore I will give him the benefit of the doubt. I don't blame the board for removing him either.
Nothing against Mike but he is even less qualified to be CEO than Matt was. MNKD is still in a very precarious situation and buying stock just because it is going up is risky.
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Post by madog365 on May 30, 2017 11:22:09 GMT -5
Mike bought stock less than a year ago on the open market at a price close to $5 today. He spent the majority of his signing bonus on this.
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Post by promann on May 30, 2017 11:23:47 GMT -5
This has been in the works. Matt was not fired. Sounds like standard language for announcing the termination of employment to me. Kent Kresa Chairman of the board in today's announcement praised Matt and said that he effectively prepared Mike to take over as his successor. This sounds to me as if this was planned from the first day Mike started with MNKD
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Post by golfeveryday on May 30, 2017 11:26:17 GMT -5
Was never a fan of Matt in the CEO role. He seemed like a nice guy and that's not what MNKD needed. IMO it comes down to two things 1) Matt did something to get fired (possibly Aegis) or something else 2) He quit and this the best way to keep the stock price from cratering. It will be interesting to see how the market digest the news not PM This has been in the works. Matt was not fired. Exactly...from the PR..."Matt successfully set the foundation for the company during its transition into a commercial entity and effectively prepared Michael to be his successor.”
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Post by cjm18 on May 30, 2017 11:27:51 GMT -5
As of Friday's close the stock is down 54.4% since Matt was CEO. January 11 2016. If Nasdaq granted an extension we wouldn't be close to down this much. (We were above 3 bucks). People will always blame the CEO for poor stock performance but I'm not going to.
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Post by Deleted on May 30, 2017 11:36:19 GMT -5
MNKD would hire a outside company, no? An outside company to do exactly what? There are restructuring companies that specialize is keeping companies out of bankruptcy, and if it comes to that, those same companies are usually engaged by the estate to find a buyer or to conduct the auction for the pieces. Companies are required to file a "first day memo" which outlines for the court the company's view on what happened and why they wound up in court, and most of those memos disclose six months or more of involvement by a work-out firm trying to avoid bankruptcy. Nobody has mentioned it, but Deerfield may have a hand in this as well. When a company is insolvent (and legally MNKD meets the definition of insolvency in Delaware) the board has a fiduciary obligation to the corporation, not necessarily the shareholders. The board may feel that the time has come for them to take actions that protect the interests of creditors, even if that is to the detriment of shareholders, to avoid legal liability, and Deerfield might have been agitating for some action. These things all happen quietly behind the scene so there is no way to know for sure. Exactly what you just explained
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Post by Deleted on May 30, 2017 11:38:47 GMT -5
This has been in the works. Matt was not fired. Exactly...from the PR..."Matt successfully set the foundation for the company during its transition into a commercial entity and effectively prepared Michael to be his successor.” They also mentioned Castagna growing scripts and I think we can all agree he has def tried but scripts haven't grown much. IMO this is just a nice way of getting fired.
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Post by uvula on May 30, 2017 11:41:22 GMT -5
No company ever admits that the CEO, hired by the board, is being fired for doing a bad job. It makes the board look bad and hurts the company. We do not know if Matt was fired or not and we never will. The press release wording is carefully chosen to minimize damage.
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Post by mike0475 on May 30, 2017 11:46:11 GMT -5
Did Matt hire Mike knowing he himself would not be the CEO down the road. But why totally let go from company?
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