cogs

A2- The Terrace Standard, Wednesday iA August 1B, 2004

Vulture fund’ Ss

and pure profit’ ‘Ss halo ta

_ 2 By JEFF NAGEL:
DON'T EXPECT them. tobe nice guys, ‘And don’t expect.
them to do. anything: other than, ty: to: make Money, - Tots".
of it “ :
That's the, picture that emerges fori fin inancial ‘exper
on whalto ‘expect: ‘froma vulture fund: sucha as Mall
Patterson Global. Advisors. ”.” 7 yo
 * The-very-label vulture fund. conjures. up. an image of a
ruthless scavenger that will sit.on's aI
and strip it. ~* *- . a
“Vultures: ao have a bad: connotation bit 1'm not: ‘sure
__ if it's deserved,” ‘said“Rob Heinkel,. professor of finance
- at UBC’s Sauder-School of | Business. 207" 6 20"
“They want’ what: all investors. wan
thing below its. intrinsic : value,” he said. “These
guys who will gladly give you the.haireut?”. °)
They. usually deal with. owners ‘who are bighlj. x moti

"vated to’ sell; Heinkel said; but: such funds, ‘aren’ 't neces: 7

sarily dishonest-or unethical. - .
“They're looking for: deals.” he: said, “And they. can
put together.a significant. amount oft money. ‘ina relative:
ly short period of time if the opportunity is there,”:
They" re: ‘also’ pot unusual’ ‘either, Heinkel- said’ all :
“major New. York: ‘brokerages, have’ at. least one division
that could be ‘termed. a’ vulture: fund = ~ buying distressed **
_ assets that have ‘no liquidity. with: the Boal, ‘of achieving.
- big gains. :
The key question: is what inivestinenit style MatlinPat--
terson .would: take .in New: Skeena’ S\ Case, ‘says: Keyin~
Mason, . who. Tuns s Equity: Research: Associates in. 1 Van-
couver,

bit they can and walk away as soon’as this thir'g- went to.
negative cash flow,” he ‘said. “With no responsibility: to...
' the people, the towns or anything élse.”
-But Mason said thé ‘outlook for norihiwesterners: ‘may,

be much better- if the fund’s. intent. is to’ ‘truly fesurrect.

the company and:sell' it alia: ‘profit later ce Father. than
bleed: it dry over the short. terme. :

“Are: they ‘teuly. vultures: in execution of are s‘they: there =
‘to help iescue’ a business, that can | be. rescued: and made
. Viable?” . oh,

Mason said one thing is certain = New ‘Skeena’s 5 pre:
sent owners will end up. with: much less influence: aver.
the outcome:than they'd hoped. - eeha’

“They' re.’ a. provider: ‘of. Jast resort,” em . Mason said,
“You've ‘basically got-to'be willing: ‘to'give up some con-.

the name

Din Venice and: tort Petty.”

He: aes pulp p prices” h ave: “stated. to. ip a 7 ean
wen ‘they. éould go back-up, |

: going tors ‘see “the: high: for: rhs ele and irs 8 going. to.
pit heading down: from there,” he

ment of that: While some. towns: might: be tempted. lo're-.

‘open the agreement: to. try ‘to .recover.more’ ‘money, Poole, .
; . said there’s a. serious tisk they. could end‘ ‘up with less:
‘He: said: ‘Matlin. Patterson. ‘could try. to’ teduce: the prop ;

very. tax amounts 'Veniez had agreed. to. pay: .
: “This ‘company knows what the deal: ‘is;
“op were'them, that's the top end. 2

Poole said

-”.” He‘said’ Matlin Patterson may: demand the deal be. re-

-Pegotiated whether: itis binding or-not.° - 2

- Under the: agreement, the towns. are ‘required. to “vote ;
-in favour of ‘any, ‘restructuring: of New. £keena in OX

ey change. for the amounts specified, Meniez said.”
“There are ‘some that ‘would ; 30. in: ‘and extract: ‘every’ a

SEE Dhave™ any advice:to give tothe: municipalities: it
would’ -be that. let's- make . Matlin, Patterson, feel’ at”
home,” Veniez, said. “We all have, an interest in n getting
that. business 1 ‘up: ‘and’ running, again. eee

Neither ‘Veniez’ Nor. Terrace. city’ officials. ‘said. they.

could release thé text of ‘the: agreement, -citing’ ‘confiden- °
& tiality.-Prince’ ‘Rupert ‘mayor Herb: Porld -said-his council
“new. deal ‘that’s: more? ‘fair. to Prince. Ru:

may push ‘for
pert, but: ‘said the: prime focus. must remain’ Mt estartiny
the’ operations. Bb pe ean

‘towns sive: up. more: tax: money...

“They. aren’t prétending to bet coming in. as social: ‘en “

._ gincers: or community: saviours,"": he: said. “They” have.”

“tral, And. that Ss: ‘obviously going. to be a tough step for inessm

25, 2004. ‘tea isa registered, trademark ol Lele et Cerporation ued under licane

Environmental hand ing
charge may apply. ©...

“While auanttios iit, Service! offer and Cl ina applcanis anty it a paling: Christe, teep, edge Dedlers, Mainienance Serv e. includes’ up to five fives af Mopar ll. ‘Some id excisions apply .
tadditional charges may ‘be apotied for diesels, Wi0s, HEMI* Vs, fluid disposal, sertiisynthelic and Synthetic” ‘oils, Price. does ‘hot include taxes. Dealer may, Sell for, less. ter expires September
by DaimlerCieyslt Canada ing See your participating DaimleiCryster. Dealer far contpte de detalls.

. 3 ‘eeneot and dk

“He addled that ihe’ city ‘hasn” asked for. any assess: .

“identifi ed themselves up Front from the © beginning as bu- :

; | oo

Total,

-AUGU 2004
p :

BBLS SASERE ELAR SA ALRYARLURETEEEASERTLRERTS

: : Construction Zones & Trafic Control

7 Nh Road Mainlen: ince and Highway improvements
“18-90 hand. int hand with V spring and’ hummer, weathet,
28 Travelers. should k zones. with: traffic:
ise watch for’ and Oley all
Lond By

WELLL

a " Construction; Terrace .
a Your Loca 1 Highway & Bridge Maintenance Contractor.
ae al Ph: (250) 638- 188}

ling delays: on-
routes your, ty -he Tavis listen 16, local
N “hadi. stadans.cor check "our - weldsite-
TN. (wy Wngchako: nerthecas, cain): for'a, link ta the
; Miniitry of Transpodtation:* “IRazie! Report’, -

FLCC r eer

OL would like to congratulate and thane the ovwanizars
of River. Boat: Days. You put, together a. ‘spectacular 7
“week. of events: ‘and: activities. T.wish. to: ‘express. my. |
“appreciation. ‘to each of you. who. ‘took’ some: valuable. pre
_ time out of your lives to ensure that everyone that . oo
; was: in ‘Terrace: had’. a. -preat, time. Bach of‘us' has-a
role in: promoting our community. This j ‘year’s River Boat Days, ‘a8.
proven by the size. of. the crowds, ‘will go- -down aS one of, the best

aver. ‘You have ‘portrayed Terrace and: the: bo
“Northwest i in a way that will only’ make future
River Boat: Days as the place, to be. ‘Thank you;
again. for’ making | a difference. Your: dedication:
“and: “efforts: “were: “appreciated by Hiterally,
([thonsends. —

~ Sincerely, coe : 5
_ Honourable Roger Harts’ os
MLA Skeena « el _ ci,

4 Lube, il and Filter change
“ Top- “up of Washer Fluid :

7 CHRYSLER | JEEP, boost:

. opm etwicin,
. THE CANADIAN

ay

WWW. terraceautomall. com.

DIR, 5958