No investors / No people in the world understand better the CCR cleanup call rights that control the future use of billions in collateral assets 600 Bpts WAC and Seasoned (see Bond Remittance Reports and Pooling Service Agreements for Novastar Financial Inc. ex NYSE $NFI). No investors in the world understand how to use $730M NOLs than those that control NOVC Board of Directors.
I have no idea what NOVC Board will do because they provide no transparency, no honest and have never shared one idea to use either $730M NOLs or CCR per Section 5.04 of Exhibit 2.1 of NOVC 10Q filed Q3 2007.
Barry Igdaloff, Howard Amster both major Dynex Capital NYSE $DX investors with Fortress, Wesley Edens, Peter Briger co CEOs. These investors control $NOVC Board and have a very successful track record using NOLs and CCR per Section of Exhibit 2.1 attached to $NOVC 10Q, Fortress with EJF Capital ID hidden behind CDOs they paid almost nothing to own now in addition to Sr. Debt own 31.3M NOVC common.
Why would any investor continue since Aug 2019 to pretend to $NOVC common shareholders that you are going to use Sr Debt with FMV of nothing per Boulay Group audit/certified 10Ks to hurt yourself as common shareholder of 27% of $NOVC common? The question is rhetorical obvious Sr Debt is a ruse to buy x number of NOVC common at pennies and take 47M $NOVC shares at pennies 31.3M for Note Holders Fortress/EJF and 16M RSU Board. NOVC Board has taken 16M RSU common by driving share price of $NOVC to nothing while converting Board Compensation at their engineered rock bottom prices.
Who knows what their next move is but I have spoken to many Quants Portfolio Mgr who state with conviction CCR are STANDARD OPERATING PRACTICE for MREIT professional like EJF Capital, Fortress and DX Investors/Board Members. In their opinion these investors will not waste either 730M NOLs or the rights that control the future use of billions of collateral assets.