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Post by thall on Jul 8, 2017 16:39:50 GMT -5
But if they know they have funds coming, why the pressure from Deerfield to hire and keep Greenhill? Why the pressure to keep 10 million cash every month?
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Post by sportsrancho on Jul 8, 2017 17:43:51 GMT -5
But if they know they have funds coming, why the pressure from Deerfield to hire and keep Greenhill? Why the pressure to keep 10 million cash every month? Good point about Greenhill. But why do they only have to keep 10m instead of 25-30? Seems someone knows something..
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Post by traderdennis on Jul 8, 2017 17:45:56 GMT -5
But if they know they have funds coming, why the pressure from Deerfield to hire and keep Greenhill? Why the pressure to keep 10 million cash every month? Deerfield has notes due in August of 2018.
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Post by silentknight on Jul 8, 2017 18:19:41 GMT -5
But if they know they have funds coming, why the pressure from Deerfield to hire and keep Greenhill? Why the pressure to keep 10 million cash every month? Good point about Greenhill. But why do they only have to keep 10m instead of 25-30? Seems someone knows something.. Because Deerfield knows that MNKD has no cash and requiring them to keep 25 mil in reserve would run them dry? I don't think it has anything to do with news coming, but rather them allowing a lower reserve to keep them out of bankruptcy.
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Post by matt on Jul 9, 2017 9:47:38 GMT -5
Because Deerfield knows that MNKD has no cash and requiring them to keep 25 mil in reserve would run them dry? I don't think it has anything to do with news coming, but rather them allowing a lower reserve to keep them out of bankruptcy. I think that is a fair assessment. Once MNKD is in bankruptcy court a lot of unexpected things can happen that are out of the control of MNKD, Deerfield, the Mann entities, and shareholders alike. Unless there is a prepackaged deal on the table, nobody ever wants to go to court. Deerfield is likely underwater with respect to this debt; in a UCC Article 9 sale they are unlikely to get enough value out of their security to break even. By keeping MNKD alive they can grab a few shares here and there, convert them to cash, and soften the eventual loss if the company does not turn around. Shareholders play offence, looking to push hard and score the biggest gain, but lenders are only entitled to recover what they loaned plus interest so they play defense looking to avoid loss. Their behavior is entirely pragmatic. As the primary lender, Deerfield does not want to have their liens "primed" or their notes equitably subordinated. Those actions let the bankruptcy judge upset the established priority of debt and let other parties rise to a more senior level than Deerfield. That rarely happens, but when it does it is usually because the lender was too aggressive and helped contribute to the bankruptcy of the debtor. Here Deerfield has taken shares in lieu of cash that they could have demanded for the May payment, has agreed to lower the cash covenant, and has extended time for the July payment. If it comes to bankruptcy, Deerfield can walk into court and argue that they tried to cooperate to keep the debtor solvent, but the situation was too far gone. Their cooperative posture protects from the risk of losing their first lien position in a bankruptcy which, if it comes to that, is their best chance to recover their loan. Regardless, Deerfield would rather just have the money, or even a known fraction of the money, rather than deal with a liquidation scenario.
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Post by peppy on Jul 23, 2017 22:55:08 GMT -5
These dates are really on my mind. scripts moving up. The commercial. UAE. Label. Brazil. Mike C. The hiring. VALENCIA, Calif., June 29, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) and affiliates of Deerfield Management Company L.P. ("Deerfield") have entered into an exchange and third amendment to their facility agreement (the "Facility Agreement"), pursuant to which MannKind's $10 million principal maturity previously due on July 18, 2017 will be extended to October 31, 2017, subject to certain conditions, the existing minimum liquidity covenant is reduced as fully described below, and Deerfield will exchange $5 million of the Amended and Restated 9.75% Senior Convertible Notes due December 2019 (the "Tranche 4 Notes") for 3,584,230 shares of MannKind's common stock (the "Exchange Shares"). The exchange price for the Exchange Shares is $1.395 per share. The principal amount being repaid and exchanged under the Tranche 4 Notes represents the principal amount that would have otherwise become due and payable in December 2019.
Pursuant to the terms of the exchange and amendment agreement, Deerfield has agreed to extend its existing $10 million principal maturity from July 18, 2017 to August 31, 2017 and, subject to certain conditions on that date, further extend it to October 31, 2017. These conditions include that MannKind has not experienced a Material Adverse Event or an Event of Default (as such terms are defined in the Facility Agreement), that MannKind has received approximately $19.4 million of proceeds from the Loan Arrangement between MannKind and The Mann Group LLC, and that the Company has at least $10 million in Cash and Cash Equivalents (as such terms are defined in the Facility Agreement). Subject to these conditions, Deerfield has also agreed to amend the terms of the minimum liquidity covenant under the Facility Agreement such that, on the last day of each month through October 31 and on December 31, 2017, MannKind must maintain at least $10 million of Cash and Cash Equivalents (instead of $25 million).
Michael Castagna, MannKind's Chief Executive Officer commented, "The extension of the July 2017 principal payment to Deerfield and the amendment of the Facility Agreement affords us flexibility and time to explore additional measures to strengthen our financial position. Just as with the Mann Group and its recently announced capital infusion, we appreciate the cooperation and support of Deerfield at this exciting time for MannKind."
www.youtube.com/watch?v=INHz5-I35DA&feature=youtu.be
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Post by thall on Jul 24, 2017 7:31:17 GMT -5
These dates are really on my mind. scripts moving up. The commercial. UAE. Label. Brazil. Mike C. The hiring. VALENCIA, Calif., June 29, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) and affiliates of Deerfield Management Company L.P. ("Deerfield") have entered into an exchange and third amendment to their facility agreement (the "Facility Agreement"), pursuant to which MannKind's $10 million principal maturity previously due on July 18, 2017 will be extended to October 31, 2017, subject to certain conditions, the existing minimum liquidity covenant is reduced as fully described below, and Deerfield will exchange $5 million of the Amended and Restated 9.75% Senior Convertible Notes due December 2019 (the "Tranche 4 Notes") for 3,584,230 shares of MannKind's common stock (the "Exchange Shares"). The exchange price for the Exchange Shares is $1.395 per share. The principal amount being repaid and exchanged under the Tranche 4 Notes represents the principal amount that would have otherwise become due and payable in December 2019.
Pursuant to the terms of the exchange and amendment agreement, Deerfield has agreed to extend its existing $10 million principal maturity from July 18, 2017 to August 31, 2017 and, subject to certain conditions on that date, further extend it to October 31, 2017. These conditions include that MannKind has not experienced a Material Adverse Event or an Event of Default (as such terms are defined in the Facility Agreement), that MannKind has received approximately $19.4 million of proceeds from the Loan Arrangement between MannKind and The Mann Group LLC, and that the Company has at least $10 million in Cash and Cash Equivalents (as such terms are defined in the Facility Agreement). Subject to these conditions, Deerfield has also agreed to amend the terms of the minimum liquidity covenant under the Facility Agreement such that, on the last day of each month through October 31 and on December 31, 2017, MannKind must maintain at least $10 million of Cash and Cash Equivalents (instead of $25 million).
Michael Castagna, MannKind's Chief Executive Officer commented, "The extension of the July 2017 principal payment to Deerfield and the amendment of the Facility Agreement affords us flexibility and time to explore additional measures to strengthen our financial position. Just as with the Mann Group and its recently announced capital infusion, we appreciate the cooperation and support of Deerfield at this exciting time for MannKind."
www.youtube.com/watch?v=INHz5-I35DA&feature=youtu.be
It bothered me that Deerfield was willing to take three and a half million shares for debt due two years from now. Why couldn't they have taken it for 5 million of the debt that was due now?
I was also bothered by the CEO's comment about affording flexibility. That seems to imply that they were in an inflexible financial position and really did need time to explore those additional measures.
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Post by straightly on Jul 25, 2017 1:36:28 GMT -5
These dates are really on my mind. scripts moving up. The commercial. UAE. Label. Brazil. Mike C. The hiring. VALENCIA, Calif., June 29, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) and affiliates of Deerfield Management Company L.P. ("Deerfield") have entered into an exchange and third amendment to their facility agreement (the "Facility Agreement"), pursuant to which MannKind's $10 million principal maturity previously due on July 18, 2017 will be extended to October 31, 2017, subject to certain conditions, the existing minimum liquidity covenant is reduced as fully described below, and Deerfield will exchange $5 million of the Amended and Restated 9.75% Senior Convertible Notes due December 2019 (the "Tranche 4 Notes") for 3,584,230 shares of MannKind's common stock (the "Exchange Shares"). The exchange price for the Exchange Shares is $1.395 per share. The principal amount being repaid and exchanged under the Tranche 4 Notes represents the principal amount that would have otherwise become due and payable in December 2019.
Pursuant to the terms of the exchange and amendment agreement, Deerfield has agreed to extend its existing $10 million principal maturity from July 18, 2017 to August 31, 2017 and, subject to certain conditions on that date, further extend it to October 31, 2017. These conditions include that MannKind has not experienced a Material Adverse Event or an Event of Default (as such terms are defined in the Facility Agreement), that MannKind has received approximately $19.4 million of proceeds from the Loan Arrangement between MannKind and The Mann Group LLC, and that the Company has at least $10 million in Cash and Cash Equivalents (as such terms are defined in the Facility Agreement). Subject to these conditions, Deerfield has also agreed to amend the terms of the minimum liquidity covenant under the Facility Agreement such that, on the last day of each month through October 31 and on December 31, 2017, MannKind must maintain at least $10 million of Cash and Cash Equivalents (instead of $25 million).
Michael Castagna, MannKind's Chief Executive Officer commented, "The extension of the July 2017 principal payment to Deerfield and the amendment of the Facility Agreement affords us flexibility and time to explore additional measures to strengthen our financial position. Just as with the Mann Group and its recently announced capital infusion, we appreciate the cooperation and support of Deerfield at this exciting time for MannKind."
www.youtube.com/watch?v=INHz5-I35DA&feature=youtu.be
It bothered me that Deerfield was willing to take three and a half million shares for debt due two years from now. Why couldn't they have taken it for 5 million of the debt that was due now?
I was also bothered by the CEO's comment about affording flexibility. That seems to imply that they were in an inflexible financial position and really did need time to explore those additional measures.
"That seems to imply that they were in an inflexible financial position " No implication needed. We ARE in an inflexible financial position. Matt's "position of strength" was a joke. Read more: mnkd.proboards.com/thread/8135/mannkind-renegotiates-near-maturities-deerfield?page=5#ixzz4np4NsGrB
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