Can someone decipher this?

  • Thread starter Thread starter Timberly
  • Start date Start date
Timberly said:
"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!
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Right except.

In 1987 Westinghouse drafted and signed a letter of intent to buy a company I owned. At that time I had developed a product and sold to primarily nuclear power plants. Because they were unable to compete with me at that time (only in this product line) their interests was to buy me out. My attorney told me that I could take the letter of intent to the bank. In other words because they were a much larger company and assume my focus would be distracted from normal performance because of this giving them the edge, any court would require them to follow through on the buyout, assuming I did not lie to them.

I guess then if what he told me was true it would be solid. I also remember at one time this was on the news with Unites Airlines and US air. The letter of intend according to the news was they could not back out, only the seller could.

Someone here might be able to give a better explaination of this. This is just my own experience.
 
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pete lafond said:
Someone here might be able to give a better explaination of this. This is just my own experience.
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Hi.
Post # 15 on this thread by me can explain.The info I gave in that post is the most authentic one can find anywhere.:cool:
 
NYC cue dude said:
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
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Audit is done to verify that the financial value and assets (ie cash) are actually what KT presented to buyer. The agreement probably allows KT to have assets of buyer confirmed (so KT makes sure that buyer can pay him). Depending on size of audit, accounting firm schedules, etc this could take a MINIMUM of 3 months. Since some of the value of the IPT is based on future revenues (no track record) it may take longer. And after that all the lawyers have to get the legal language and agreements written up.
Jack
www.johnmaddencues.com
 
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