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Wednesday, September 10, 2008

So we have a dispute going on between the Martins at Martin Midstream Partners. Read through the filing and maybe its the second paragraph that has people selling first and asking questions later. Stock is down 5 dollars right now.

In the event that a judgment is rendered against MRMC in the above-described litigation and such judgment is deemed to have a material adverse effect on the Partnership, the lenders under the Partnership's credit facility would be entitled to declare an event of default under such facility and all amounts outstanding thereunder to be immediately due and payable. In addition, if as a result of the above-described litigation, either Ruben Martin or Scott Martin ceases to be the President and Chief Executive Officer of MRMC and no successor acceptable to the lenders is appointed within the time period specified in the credit agreement, then such lenders would also be entitled to declare an event of default under such facility. Furthermore, any circumstance that might be deemed to have a material adverse effect on the Partnership,
including any circumstance that might be deemed to have a material adverse effect on MRMC, even though not a technical event of default under the Partnership's credit facility, could result in the Partnership being unable to access additional borrowings thereunder.

Maybe the Martin's should think back to a time when they got along like they did here against a formidable advesary.


6 comments:

Anonymous said...

Great-now we have family squabbles to add to the list of insults we have to endure. What's next locust swarms?

Anonymous said...

MMLP -20% now

This SGLP all over again...

Stay away!

Anonymous said...

There is just an utter disregard for LP holders by the GP's. They just milk the cow for all its worth, pay themselves a ton for doing nothing and we get f*cked in the ass. Holding MLPs is a muggs game.

Anonymous said...

I think that most MLPs are set up so that the LP gets the first cut of the distributable funds.

If one has shares in the GP and there's reduced funds available for distributions, one might be facing a reduction or elimination of ones distro.

Anonymous said...

There is just no let up in the bloodletting...just pull the plug on the patient.

Anonymous said...

The Martin brothers have filed suit against each other before without dire consequences for the partnership. Hopefully this will pass.