NIR Group is offering sweet deals to third party funds who will convert their PIPE notes for them. I reported on one of the firesale deals this week for DealFlow Media and am still left wondering why NIR is asking for so little money down. To read the details of the deal, based on transaction documents I saw, go buy the DealFlow story.
When I interviewed NIR’s new attorney Brad Gertsman he couldn’t detail why NIR thought this was the best method to maximum the value of the investment—just that it was. The issues raised in my DealFlow story center on NIR’s liquidation strategy, which is being led in tandem with Cayman Islands offshore liquidator PwC. Gertsman also said that statements made by an unnamed person involved in the deal regarding Bobby Cohen telling potential buyers of NIR notes that they could not legally convert notes to stock right now were totally false.
If you read the DealFlow story…I’d love to hear from market participants or sophisticated investors on what you think NIR Group is trying to do here.
Editors Note: According to the NetCo (penny stock PIPE deal NIR did in 2002) term sheet, that was written by NIR Group, this is the list of NIR Group funds involved in the sale transaction. The last two funds are under control of the Cayman Islands court appointed liquidator PricewaterhouseCoopers.
AJW Partners, LLC
AJW Partners II, LLC
AJW Offshore, Ltd.
AJW Master Fund, Ltd.
AJW Qualified Partners, LLC
AJW Qualified Partners II, LLC
New Millennium Capital Partners II, LLC
New Millennium Capital Partners III, LLC
AJW Offshore II, Ltd. (PwC Corporate Finance and Recovery)
AJW Master Fund II, Ltd. (Pwc Corporate Finance and Recovery)
UPDATE 11-10-11 : In the early afternoon of October 27th I emailed NIR’s Bobby Cohen asking for comment on the NetCo sale to a thrid party fund that I was about to report for DealFlow Media. I listed statements made by multiple people involved in the deal and Bobby wrote the statements by my sources were totally false. I also interviewed NIR’s outside counsel Brad Gertsman three times that day about the details we were looking to verify. The information I uncovered for the story appears to set off NIR founder Corey Ribotsky because I just confirmed with the Nassau County 6th district police that a parking valet at NIR’s Roslyn office, on 1044 Northern Blvd, called the police saying he was being threaten by a building occupant. The call came in at 3:47 pm and a person at the scene said the occupant was Corey Ribotsky. It appears by the time the cops got there no police action was needed and the Nassau Police public affairs officer confirmed no charges were filed–but clearly something set Ribotsky off.