Mega MLSs are attempting to sell Remine — either whole or in parts
“The MLSs collectively paid $53.5 million to buy Remine. Remine is a wholly-owned subsidiary of MLS Technology Intermediate Holdings, which is a wholly-owned subsidiary of MLSTH.
According to legal filings, on February 19, MLSTH hired Rock Creek Ventures, a financial advisory firm that specializes in business restructuring, to run an eight-week sale process for Vienna,Virginia-based Remine under a proceeding known as an assignment for the benefit of the creditors or ABC.According to the American Bar Association, an ABC “is a business liquidation device available to an insolvent debtor as an alternative to formal bankruptcy proceedings”
Embarrassing. And it couldn’t come at a worse time.
The math on this transaction is absolutely insane. This company was on the road to bankruptcy. Recently they dismissed a lawsuit because the plaintiff couldn’t identify another company who wanted to acquire ReMine. The preferred shareholders slashed their preference by almost half to help get this across the finish line and still nobody really knows who’s on the cap table. So 5 MLSs bought this for 50M just so they wouldn’t lose a service that nobody really liked so they could sunset it 3 years later?
https://courts.delaware.gov/Opinions/Download.aspx?id=365400
Math’s comment is spot on. Nothing explains it other than Spinetto is the best salesman in the world. He managed to sell the Titanic as it was sinking. It would be nice to hear from the ringleader who managed to convince the other MLSs to get on board this impending disaster. Why is it that one of the smaller shareholders is answering questions in the article, but the largest shareholder is staying very quiet?