Fortress/EJF Capital own CDOs Taberna CDOs I & II/Kodiak CDO I, that own both $NOVC only Sr Debt to exit Ch 11 (already paid all their back interest compounded which was many times over the cost of these CDOs) AND 31.3M 27% of $NOVC common shares outstanding 116M. THEY ARE the majority CONTROLLING Novation Co $NOVC shareholders pulling the puppet strings on Novation Companies Inc. $NOVC Board aka Fortress' co investors that Fortress restructured Dynex Capital NYSE $DX 2000-03 Chairman of NOVC Board Barry Igdaloff, Howard Amster. They used Sr Debt (face value on NOVC Balance Sheet) as ruse to keep NOVC in Going Concern Status and to take 41% or 47M shares for themselves at below one cent. Board Barry Igdaloff, Howard Amster gave Fortress/EJF Capital millions in cash plus 31.3M shares at below one cent many months after exit Ch 11 for no consideration that is they left Sr Debt on the Balance Sheet then they converted some of their board compensation into est 16M RSUs common stock 10% at their engineered penny share price.
How do I know? $NOVC Board clearly explained how important Wes Edens then COB of Capstead Mortgage $CMO now traded $FBRT was to restructuring Dynex Capital NYSE $DX 2000-03. They and their friends separately explained how Wesley Edens 2000 flew to Columbus, OH to meet them with the sole objective HOW to restructured Dynex Capital NYSE $DX from penny stock to $10/shr pre 3:1 reverse split so $DX could trade like $NOVC use to on the NYSE under MREIT exemption. This included the removal of Thomas Potts as then CEO of DX. Chairman equated removing Lance Anderson as NOVC CEO to removal of Thomas Potts. He was impressed with the new Board ability to strip Lance Anderson of est 4.3M stock options yet this Board has issued not one idea to monetized NOLs or CCR or HCS www.healthcare-staffing.com and prior MREIT Novastar Financial Inc. that traded on NYSE as $NFI. There is a reason for their ruse and I can only render a guess WAG which is they stall so Edens, Briger with Rajeev Misra Head of Mubadala Inv Co HF 6B AUM can buy Fortress back from Softbank which paid 3.3B for all of Fortress in 2017.
They explained how Fortress camouflaged their DX investment at $CMO. Jason Stewart MREIT Director of Research confirmed this fact stating Howard Amster was the real master mind in restructuring DX. Stewart formerly worked at EJF Capital and FBR leading research. He stated he knows Michael Sawyer ex CEO of Saxon Capital and Manny Friedman, Wes Edens personally. I will quote him 1. THERE IS NO WAY these people will waste NOVC 730M NOLs or CCR cleanup call rights Rights defined in Exhibit 2.1 of 10Q filed by NOVC 2007 Q3 Service Rights Transfer Agreement Section 5.04 defined CCR that control the future use of rich, seasoned collateral assets ideal to be leveraged, resecuritized into new tax exempt MREIT Dividend.
Book Runners IB for both Dynex Capital NYSE $DX and Saxon Capital (both MREIT spun out of the same public co based in Glen Allen, VA) was EJF Capital Manny Emanuel J Friedman and Neal Wilson Co CEOS formerly called FBR Friedman, Billings & Ramsey the most prominent MREIT Market Maker next to Fortress who Co-COB/CEOs Wesley R. Edens ex Blackrock, Lehman Bros MBS Desk Leader, Peter Briger ex Goldman Sachs Partner named the NEW SUBPRIME NON QM MREIT KINGS by Wall Street Journal just after they merged Nationstar for 3.8B with Mr. Cooper $COOP formerly Washington Mutual $WAMU ex $WMIH inside WAMU Ch 11. Fortress COB stepped down as COB/CEO of the new entity named Jay Bray to replace him see 8K. Fortress merged Nationstar with $COOP (owned by KKR 17% post merger) saving $COOP $7B NOLs.