Not sure if this has been posted..Mastro in the Chicago Tribune

[birdman42]

Originally Posted by Peter_Spaeth

If Legendary really BOUGHT Mastro's assets for fair value, and it wasn't a shell game, why can't Mastro use THAT money to pay consignors?

Peter,

I've wondered that myself. If Legendary bought all of Mastro's assets, that would include their accounts receivable. So nobody owes Mastro any money; it's all owed to Legendary. And Mastro either had the cash to pay out, and they should do so, or they don't have enough cash, and they're hoping some people go away that they can pay the ones left.

No dog in this fight.

Bill

[Peter_Spaeth]

Originally Posted by birdman42

Peter,

I've wondered that myself. If Legendary bought all of Mastro's assets, that would include their accounts receivable. So nobody owes Mastro any money; it's all owed to Legendary. And Mastro either had the cash to pay out, and they should do so, or they don't have enough cash, and they're hoping some people go away that they can pay the ones left.

No dog in this fight.

Bill

Interesting point, but apparently Legendary did not acquire that receivable, as the suit against Dave Forman was filed by Ketap (new name for Mastro), not by Legendary.

[Boomer]

Turtleguy
I would love to hear Doug Allen's explanation of what happened at Mastro.
Thanks
Mike

[turtleguy64]

Mike,I'll try to put it for you in a nutshell as related to me by him and I sincerely hope I get it right.If I don't,then I owe someone an apology:company purchasing Mastronet ran into difficulties and had to cut loose of Mastronet as an asset,bank note came due (a very,very large one).Banks note had to be honored.Let me interject here-a very good friend with connections in Mastronet warned me not to consign anything else to them as these difficulties were coming to fruition.Next point,the Dave Forman refusal to pay the 400 thou on items he won from that Feb. auction really created pressure on Mastronet to pay it's consignors.Had he paid,every single consignor would have gotten their money and we are not even discussing any of this today.Okay,Mike,I am out of steam but that is the crux of my conversation with Doug.Believe what you will,to me it became a perfect storm and the economy being what it was in Feb. probably didn't help,especially with attempts to borrow to try and resolve all the $ problems.But that's my theory,not someone else's theory.

[Boomer]

Thank you

[turtleguy64]

Glad to help.David

[Kenny Cole]

So let me get this right: you got stiffed completely on your consignment. You have been paid nothing. If you link on Mastro's website, you get Legendary. If you read the Legendary puffery, it is almost identical to that of Mastro, with a name change. Most of the high-ups in Mastro (perhaps principals, perhaps not) are now at Legendary. However, all is good because you now have now received an explanation about why you have been screwed and are OK with that? Wow.

Do you have any expensive cards you can consign with me?

[Peter_Spaeth]

Originally Posted by Kenny Cole

So let me get this right: you got stiffed completely on your consignment. You have been paid nothing. If you link on Mastro's website, you get Legendary. If you read the Legendary puffery, it is almost identical to that of Mastro, with a name change. Most of the high-ups in Mastro (perhaps principals, perhaps not) are now at Legendary. However, all is good because you now have now received an explanation about why you have been screwed and are OK with that? Wow.

Do you have any expensive cards you can consign with me?

Kenny, all that is of secondary importance because Doug is a great guy. And to your factual recitation, you can add that according to the Illinois Secretary of State Doug is still president of Mastro, and that Silk Road's website describing its portfolio companies simply changed Mastro to Legendary keeping the exact description.

[Sean_C]

The only consignors that should not have been paid should have been the ones who were unfortunately involved with the contended lots with Forman, or other non-paying bidders. End of story. Anything else is a pathetic attempt to excuse poor business practices.

You ship consignors items before getting paid for them? Then you are responsible for them. If you can't get the items back, you pay the consignors their $, and pursue your legal options against the person (has Forman been served yet, or has that dog and pony show continued?).

You borrow too much $ and have problems paying the bank back? Then you suck as an executive and should be replaced.

Your backers have $ problems? Then why the hell would you allow them to be involved in your new enterprise?

Originally Posted by turtleguy64

Mike,I'll try to put it for you in a nutshell as related to me by him and I sincerely hope I get it right.If I don't,then I owe someone an apology:company purchasing Mastronet ran into difficulties and had to cut loose of Mastronet as an asset,bank note came due (a very,very large one).Banks note had to be honored.Let me interject here-a very good friend with connections in Mastronet warned me not to consign anything else to them as these difficulties were coming to fruition.Next point,the Dave Forman refusal to pay the 400 thou on items he won from that Feb. auction really created pressure on Mastronet to pay it's consignors.Had he paid,every single consignor would have gotten their money and we are not even discussing any of this today.Okay,Mike,I am out of steam but that is the crux of my conversation with Doug.Believe what you will,to me it became a perfect storm and the economy being what it was in Feb. probably didn't help,especially with attempts to borrow to try and resolve all the $ problems.But that's my theory,not someone else's theory.

[Jim VB]

Originally Posted by Sean_C

...(has Forman been served yet, or has that dog and pony show continued?).

Good question!!! I don't know the answer, but think of it this way, once Forman has been served, the plaintiff is open to discovery motions and depositions. Do you think they really want that, or do they hope bad publicity would force payment?

[jmk59]

I think I got it. They used proceeds from the sale of consigned goods to pay their other obligations instead of the consignor while also sending out consigned goods without payment. I don't understand how this explanation somehow makes it all okay.

And I don't know Doug at all, but it seems highly and obviously manipulative on his part to give someone the talking point (that predictably ended up being posted here) that this is really all about Dave Forman. Too obvious, and it looks like a very very clumsy attempt to deflect attention that is properly directed at Mastro for mishandling the cards.

J