SueDonJ
Moderator
- Joined
- Jul 26, 2006
- Messages
- 16,838
- Reaction score
- 6,162
- Location
- Massachusetts and Hilton Head Island
- Resorts Owned
- Marriott Barony Beach and SurfWatch
Somebody selected December 10, a date very likely before the spin occurs, for a reason.
Read the Form 10.
MAR is doing everything it can to suck cash or other benefits out of VAC before the transaction.
- Part of the spin transaction involves the sale of $40 million of mandatorily redeemable 10% preferred stock by the US holding company of VAC. The proceeds of the sale will be retained by MAR.
(Sources: Page 53, Form 10 - Second Amendment filed 9/30/11, Tax Sharing and Indemnification Agreement, Pages 162-163, Fourth Paragraph)
- MAR will retain the tax loss carryforwards (~$300MM) as a result of this transaction.
- Add a $50MM+ annual license fee from VAC to MAR for the name.
That's a giant sucking sound you hear . . . as cash is heading to MAR from VAC.
Sue, be careful who you are rooting for. There's a distinction to be made between MAR and VAC.
I'm rooting for me!