Quote:
Originally Posted by Cowperson
Glendale is alleging that Goldwater is engaging in Tortious Interference and therefore, yes, controlling the sale of the bonds.
In fact, the bonds had a favourable, in-the-market rating from S&P and an ordinary interest rate when first announced, suggesting they were priced in context with the market.
Glendale contacted investment firms directly and indicated they would be suing. It is only their allegation, never proven, that the deal is illegal.
No competent money manager looking after OPM - Other People's Money - is going to get involved at that point. There are just too many other things to be doing with money, most not involving lawsuits, to bother.
In other words, no one is avoiding the deal because of credit risk, too low an interest rate, worries about revenue streams, thinking Phoenix is a sucky NHL market, etc.
They're simply prudently going about their business elsewhere because someone told them a lawsuit would come.
Goldwater is definitely controlling the sale of the bonds.
Cowperson
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or people didn't do their due diligence. A city bond sale for a 100 million to pay Hulsizer to buy back parking rights that the city currently owns?
Even the Yankees, who have a similar deal with NYC, do not generate enough parking revenue for that to be a success investment for the city.
What's backing the bond sale? the revenues from parking at the stadium? Is the City going to guarantee the return on the bonds?
its a silly bond sale, and anyone looking at it carefully would have walked away, Goldwater or not.