Can someone decipher this?

[Timberly]

"Trudeau announced that the IPT just signed a letter of intent to be acquired by Stanley Ho, the largest casino owner in the world."

I don't know legal speak and I certainly don't know anything about buyouts, etc. A "letter of intent" does not sound like a guarantee to me. People have good intentions but yet don't act upon them or go about them in the wrong way. I intended to do laundry last night but decided not to.

To me, the word "intent" doesn't mean definite. Am I wrong? Does someone else here know more about this and can you please elaborate?

Thanks!

 

[CrownCityCorey]

"Trudeau announced that the IPT just signed a letter of intent to be acquired by Stanley Ho, the largest casino owner in the world."

I don't know legal speak and I certainly don't know anything about buyouts, etc. A "letter of intent" does not sound like a guarantee to me. People have good intentions but yet don't act upon them or go about them in the wrong way. I intended to do laundry last night but decided not to.

To me, the word "intent" doesn't mean definite. Am I wrong? Does someone else here know more about this and can you please elaborate?

Thanks!

They may have to determine the actual value of the IPT and its assets before setting the sale price. Then the transaction takes place.

There are always a lot of loose ends to tie up before someone takes ownership of a business.

You definately want to make sure that all the IPT's ducks are in a row before you give em' a check.

No one can say for sure though without knowing all the terms of the sale. I am sure if the terms, price and the like are not agreed to, then one of or both parties have an option to walk away at some point.

 

[mosconiac]

Letter of Intent
n. pl. letters of intent
A written statement expressing the intention of the undersigned to enter into a formal agreement, especially a business arrangement or transaction.

It means the legal documents are not drawn, but the IPT has a serious intention of completing the transaction.

 

[Nostroke]

"Trudeau announced that the IPT just signed a letter of intent to be acquired by Stanley Ho, the largest casino owner in the world."

I don't know legal speak and I certainly don't know anything about buyouts, etc. A "letter of intent" does not sound like a guarantee to me. People have good intentions but yet don't act upon them or go about them in the wrong way. I intended to do laundry last night but decided not to.

To me, the word "intent" doesn't mean definite. Am I wrong? Does someone else here know more about this and can you please elaborate?

Thanks!

Here is first definition i found

A formal method of stating that a prospective developer, buyer or lessee, is interested in property. Not an offer and creates no obligation.

I would have thought it has some obligation but i guess not so my question is-Why bother?

 

[macguy]

"Trudeau announced that the IPT just signed a letter of intent to be acquired by Stanley Ho, the largest casino owner in the world."

I don't know legal speak and I certainly don't know anything about buyouts, etc. A "letter of intent" does not sound like a guarantee to me. People have good intentions but yet don't act upon them or go about them in the wrong way. I intended to do laundry last night but decided not to.

To me, the word "intent" doesn't mean definite. Am I wrong? Does someone else here know more about this and can you please elaborate?

Thanks!

A letter of intent is a letter from one company to another acknowledging a willingness and ability to do business. A letter of intent is most often issued as acknowledgment of the fact that a merger between companies or an acquisition is being considered seriously. Not sure it represents any legal commitment on either side.

 

[memikey]

A "Letter of Intent" in the context of negotiations between two companies for one to acquire the other is basically the common name used for a document drawn up to summarise the main points of intended contractual agreement betwen the two parties who are in the ongoing process of negotiations i.e. as a sort of half-way-house before the contract is legally finalised.It is sometimes also known as a M.O.U - Memorandum of Understanding.

The contents of a Letter of Intent usually include clauses indicating that neither party is actually legally bound by the content,hence why it is merely a Letter of "Intent" rather than a finalised legal contract.....so your instinct is basically correct Timberley.

Companies in the process of sale negotiations sometimes use the existence of a Letter of Intent as reassurance for their bank or their creditors or their shareholders........although obviously,not personally knowing anything whatsoever about IPT's ownership etc,I am not for a nanosecond implying anything about IPT by adding that further explanation.

Hope this helps.

 

[jimmyg]

"Trudeau announced that the IPT just signed a letter of intent to be acquired by Stanley Ho, the largest casino owner in the world."

I don't know legal speak and I certainly don't know anything about buyouts, etc. A "letter of intent" does not sound like a guarantee to me. People have good intentions but yet don't act upon them or go about them in the wrong way. I intended to do laundry last night but decided not to.

To me, the word "intent" doesn't mean definite. Am I wrong? Does someone else here know more about this and can you please elaborate?

Thanks!

You are exactly correct Timberly. A "letter of intent" is generally an agreement that is extremely conditional in nature, it will preceed and usually not be quite as binding as the final and actual contract, but the terms can be extremely varying. They can specify conditions, penalities, excape clauses, can be drafted tightly or be almost meaningless in terms of being binding. Each one tends to be different and must be individually examined to really understand.

What's strange here is that when buyouts or mergers of this alleged amount are usually announced, it is common for both parties, their attorneys, maybe a PR company and the media to be present when the formal announcement is made. It eases the concerns of the employees and investors as to the reasons and intentions of the buyer and seller. I haven't been able to find even a press release from Mr. Ho confirming his involvement. Jimmyg

 

[Timberly]

I noticed the wording right away but let it go for awhile because no one else questioned it so I figured it was all good. Then people started talking as if the IPT was in fact bought out, and again no one said differently. That quote in my original post just wouldn't go away... it's been nagging me and nagging me.

Thank you everyone that gave me a rundown on my question.

Technically speaking, since KT used that verbiage, is it a safe bet to say that currently the IPT has not been officially sold?

 

[memikey]

....Technically speaking, since KT used that verbiage, is it a safe bet to say that currently the IPT has not been officially sold?

No,you can't be absolutely sure that it has not ben sold.......does it really matter?

 

[wahcheck]

who knows but KT

I noticed the wording right away but let it go for awhile because no one else questioned it so I figured it was all good. Then people started talking as if the IPT was in fact bought out, and again no one said differently. That quote in my original post just wouldn't go away... it's been nagging me and nagging me.

Thank you everyone that gave me a rundown on my question.

Technically speaking, since KT used that verbiage, is it a safe bet to say that currently the IPT has not been officially sold?

Wow...speculate, misinformation, legalese, guesstimations.....

First we read that the IPT has been verified as sold to Mr. Ho for $150 million ...now it's just a letter of intent? Legalese aside, Intent means that we aim to do it but we just haven't done it until we do it.....what's that old saying?........."the road to Hell is paved with good intentions"......Guess the most definite thing is that only KT knows.....

 

[NYC cue dude]

as explained, a letter of intent may or may not mean anything in this case.

I have first hand experience with this, and mine contained VERY SPECIFIC info, such as closing date, terms of sale etc. It was based on a final account audit. The letter of intent i entered into also specified that i couldn't negotiate or sell my business to another during the audit period.


All this to say, we can only speculate on the terms of the ipt's letter of intent.
It may be as good as sold, with very binding contractual obligations, or it may be contingent on other things, such as earn outs for a specific period of time etc. (meaning that the ipt may have to show certain profits or sponsorships(receiveables) by a certain date for the sale to go into affect.

But by virtue of the statement alone, the IPT is NOT sold at this time and still belongs (as far as we know) to KT.

rg

 

[onepocketchump]

No, I never read that the IPT was "sold" for 150 million anywhere but HERE. I don't even know where the 150 million figure came from.

In any case the whole thing is speculative.

John

 

[Timberly]

No,you can't be absolutely sure that it has not ben sold.......does it really matter?

It matters to some but not others. I was simply trying to clarify because I've seen people say over & over that it was sold and "letter of intent" simply didn't sound "sold" to me.

Thanks for all of your responses. I guess the only people that really know for sure are KT & Ho. At least I've been able to stop that nagging question in my head.

 

[memikey]

.......and of course.......the terms of sale of any Company to another do not necessarily have to include an undertaking by the new owner to settle any of the existing debts......nor necessarily to retain any of the employees.......nor necessarily to honour any existing contracts with venues.......nor necessarily to honour any undertakings (eg "tour cards") given to individuals......... nor necessarily to honour any verbal or written minimum payment guarantees given to individuals such as pool players by the previous owner.....nor necessarily to proceed with event schedules published prior to the sale.....
etc etc etc.....

These are the things which should be of interest to the players and fans in the context of sale implications.......not speculation as regards what the Seller/Buyer may have agreed as a price,which is almost totally irrelevant to anyone other than the Seller and Buyer.These are the things which will matter most even if Trudeau sells IPT for one dollar.

 

[vagabond]

This is from the horses mouth
Letter of intent: A written statement detailing the preliminary understanding of parties who plan to enter into a contract or some other agreement; a noncommittal writing preliminary to a contract.A letter of intent is not meant to be a binding and does not hinder the parties from bargaining with a third party.Buisiness people typically mean not to be bound by a letter of intent ,and courts ordinarily do not enforce one; but courts occasionally find that a committment has been made.Abbr, LOI-Also termed Memorandum of Intent;Memorandum of understanding;term sheet;Committment letter.Cf precontract under contract

 

[Williebetmore]

"letter of intent" simply didn't sound "sold" to me.

T-girl,
I was involved in the sale of a large business, in which a letter of intent was used by the buyer.

The letters include a specified period of time during which no one else can buy the business; allowing the buyer time to investigate the details.

There is another clause that is usual in such letters; and that is a "non-disclosure" clause. Usually prospective buyers have insufficient financial information to assess the business. This clause allows them to inspect the books, and allows the owner peace of mind that his private finances will not be broadcast for all to see.

 

[Blackjack]

I would guess that they are still discussing the sale, however, Kevin has made the letter of intent public in a gesture to Mr. Ho that tells him that he will not enter into talks with another entity. This may or may not work depending on the outcome of the talks with Ho Interactive. If Ho Interactive decides not to follow through on their intent to purchase the IPT, if the reasons are made public it could limit Kevin's options in the future. There are measures he could take to ensure that does not happen, hopefully he has covered all the bases.

A letter of intent means that talks have ceased with other buyers. A high school football player can sign a letter of intent to play at Notre Dame, that means that no other school can talk to that athlete, and the athlete has a duty and a resposnibility to notify any other schools that were recruiting them that they have signed the letter of intent. However, if a scholl only receives a verbal commitment, then the verbal commitment is a non-binding, oral agreement. The player can then sign with any other institution if he/she so chooses. Basically the letter of intent stops all talks between Trudeau and whatever companies were interested in taking over the IPT (I'm guessing it was line half a mile long)

This does mean that there has been no formal agreement or purchase of the IPT - yet.

I am guessing that whenever or (IF ever) the sale is finalized, that things will drastically change within the organization. There are differences in Eastern and Western culture and Eastern and Western business practices. These differences are not subtle. In reality, If Mr. Ho owns the IPT, he realistically has no use for Kevin Trudeau or the current staff. I can guarantee you that Kevin's power (in any capacity) will be extremely limited no matter what title they bestow upon him (for 5 years). It is my guess that Kevin will not enjoy that at all and he will resign within 6 months, and I would not blame him if he did. I have said before that the current staff's days might be numbered and the inefficency of issuing checks and other matters will be dealt with swiftly by Ho Interactive. Customarily, Eastern business has no tolerance for inefficiency and every aspect of the IPT will be evaluated and brought up to Mr. Ho's standards. I think that whatever happens - good or bad - this will be looked back upon as one of the most exciting and interesting periods in the history of pocket billiards.

 

[rackmsuckr]

It matters to some but not others. I was simply trying to clarify because I've seen people say over & over that it was sold and "letter of intent" simply didn't sound "sold" to me.

Thanks for all of your responses. I guess the only people that really know for sure are KT & Ho. At least I've been able to stop that nagging question in my head.

That is why I was always very specific in reporting when asked, that it was a LOI. I deal with LOI's in my business and it states their intention to follow through, but there are reasons they can't sign the final contract yet. That allows us to plan and move forward as if they were signed on. It can also be binding.

 

[ironman]

This is from the horses mouth
Letter of intent: A written statement detailing the preliminary understanding of parties who plan to enter into a contract or some other agreement; a noncommittal writing preliminary to a contract.A letter of intent is not meant to be a binding and does not hinder the parties from bargaining with a third party.Buisiness people typically mean not to be bound by a letter of intent ,and courts ordinarily do not enforce one; but courts occasionally find that a committment has been made.Abbr, LOI-Also termed Memorandum of Intent;Memorandum of understanding;term sheet;Committment letter.Cf precontract under contract

FWIW! The only letter of intent I've dealt with was coming out of High School. I signed a letter of intent which meant I couldn't sign with any other school in that conference. Probably totally different issues.

 

[vagabond]

FWIW! The only letter of intent I've dealt with was coming out of High School. I signed a letter of intent which meant I couldn't sign with any other school in that conference. Probably totally different issues.

Then it will not be called letter of intent. what u signed was a contract.