Re: Is the PR new news?GK
in response to
by
posted on
Feb 05, 2011 12:21PM
<The PR addresses licenses that were signed in Dec and Jan. Isn't it possible that these are the same licenses referenced in the 10Q at Jan 13?>
Obviously, the answer is yes. Possible. Problem is we do not know if the court has imposed any restrictions, (I believe they have) and whether license funds are still allowed to flow to the JV partners. Possibility exists that PDS working capital is maxed out at 8 mil and balance placed in escrow account until settlement, or something like that. PDS could have been maxed out at 8 mil but paid some expenses prior to that reported 7 mil number.
The reason I believe the court may be involved in the money flow is the $410K loan to Alliacense. That was to pay payroll and rent. The only rationale for that happening is that TPL wasn't paying and the court only allows PDS to pay certain types of bills directly related to MMP licensing expenses. However, if Alliacense disbands, licensing stops. Since it only happened once, either TPL resumed payments, or the court allowed them going forward. But if Alliacense is still a TPL enterprise(?), which includes work outside of MMP, I doubt the court would allow PDS to pay those expenses, and PTSC would surely and rightly object if it did. Consider also that the court placed CJ in charge of PDS banking. It appears to me there is some court involvement in the handling of money, we just can't be sure how extensive.
As to whether there is any logic to witholding funds from the JV partners, keep in mind that PTSC increases their share of the MMP if they supply capital to PDS for TPL. That might be an issue which would muddy exactly how to divy up any funds exceeding the 8 million PDS capital cap. Also consider that TPL took an unfair share of licensing funds in the past. If money distributed now it becomes problematic if resititution needs to be made upon settlement. I believe logic exists for the withholding funds from the partners, but it is only my opinion.
So, unfortunately, it isn't clear to me how much those Dec/Jan licenses took in. But I believe there is an argument for more than what is being reported on PDS books.
Opty