Quote:
Originally Posted by Rhotchkiss
Based on the article above, it looks like PWCC may have been in trouble financially. Reading between the lines, it looks like PWCC borrowed a bunch of money to lend on cards, the interest rate on that loan went way up while the value of the cards they lent on plummeted. PWCC takes back a ton of cards. PWCC cannot service it’s debt bc the lender does not want to get paid in cards. Now the entire company is at risk bc the assets are pledged as collateral; and perhaps the owners have personal liability too. Fanatics comes in and effectively assumes the position of the lender- they pay off the lender and take all of PWCC’s assets. I am not sure the owners got paid anything- it depends on how desperate they were; maybe they kept a slice of ownership.
Bottom line, I am guessing Fanatics had all the leverage in this deal, meaning they not only got a new platform/business, but they probably got a pretty good deal to boot
Again, I know nothing about this deal other than what is in the article and my (likely poor) intuition
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Definitely plausible and even likely. I wonder how many of the cards they held as collateral were the new/shiny ones and how many were vintage/pre war. The higher % of new/shiny, the more I'd think you're right, Ryan.
It will be interesting to see where this goes. My PWCC vault is now empty, that's for sure (not that there was ever much in it).