Friday, November 17 2006 2:35 PM, EST Stockton Relief for Pac-West ? but at what cost? [The Record, Stockton, Calif.] Knight Ridder/Tribune "Business News " Nov. 17 --STOCKTON -- Pac-West Telecomm Inc. has won a reprieve in its struggle to remake itself while its bread-and-butter business of dial-up Internet service dies. However that relief came at a cost as Pac-West's new partner will gain majority ownership and could end up with as much as a 95 percent stake in the telecommunications company. But Pac-West may have been short of options with just two weeks remaining on a deadline to meet conditions on a secured bank loan of nearly $9 million . Columbia Ventures Corp. , a Vancouver -based private-equity firm, acquired and restructured that loan so that Pac-West has access of up to $11.3 million in cash as well as $15.2 million in potential future credit. Columbia will also pay Pac-West about $1 million for stock that if converted could give Columbia as much as a 95 percent stake in Pac-West. Given the alternatives, including filing for bankruptcy protection, this seemed like the best option, said Hank Carabelli, Pac-West's president and chief executive. "We looked at this alternative as the one that maximized value for the combined constituencies. Obviously, in that process, there are trade-offs for everybody." However the deal doesn't mean Pac-West is in the clear. "This is not the panacea," Carabelli cautioned. "This is not the end-all cure-all. We will continue to have challenges." But the relief gives Pac-West some breathing room. It now has time to complete building a nationwide network, polish and launch a number of new Internet-telephone productions over the next several months and complete the transition first envisioned 18 months ago, Carabelli said. This deal is good news for Pac-West, said Mark Plovnick, director of economic development at University of the Pacific . "Columbia Ventures is investing a lot of money in Pac-West, and it's interested in its technology and business strategy. I think that's a positive," he said Thursday. Besides the cash infusion, Pac-West won concessions to defer or reduce payments to other major creditors. In exchange, Columbia Ventures receives just over 879,000 shares of convertible preferred stock. The first series issued Wednesday would give Columbia a 51 percent ownership of Pac-West upon conversion. The second series, pending shareholder approval, would boost that to a 95 percent stake. In addition, four Columbia Ventures executives are due to join Pac-West's nine-member board of directors on Tuesday. They will take the seats of three directors expected to resign that same day, as well as a now-vacant seat on the board on the nine-member board. Kenneth D. Peterson Jr., Columbia Ventures' chairman and chief executive officer, did not return a telephone call for comment Thursday. However, in a statement, Peterson said: "We are pleased to assist Pac-West in the development of a nationwide infrastructure platform that is designed to enable literally any company to provide voice services to their customers. ... We believe Pac-West has taken a leadership position in enabling the next wave of communications, and we are excited to be able to participate with them." The U.S. and international telecommunication industry is Columbia's primary focus, and their executives will lend valuable expertise to Pac-West, Carabelli said. "They bring value because they know a lot of people in the industry, they know where the industry is going," he said. "They are just really good at what they do and at bringing people together from across the industry." In over-the-counter trading Thursday, Pac-West stock tumbled to close at an all-time low of 6 cents a share, down from 14 cents Wednesday. In March of 2000, it traded at more than $41 a share. Pac-West employs nearly 400 workers, according to Computer Business Review Online. Contact reporter Reed Fujii at (209) 546-8253 or rfujii*recordnet.com
Posts: 819 | Registered: Apr 2006
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posted
L2s thinning out. Looks like it could EOD run to 0.15.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
LOL, I posted about this one yesterday at .055. They announced a corp debt restructuring and dropped like 65%. I had meetings all afternoon, so I sold out at .065 before I started them. Looks like I missed some serious money.
Damn.
Posts: 5508 | From: Southeastern PA | Registered: Jan 2006
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posted
MMs really want to move this. Every time the ask gets touched they all jump up to the next level.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
Looking for a bouncwe soon. this one seems to dive, then bounce back up to its 20 DMA, which is around 15 cents right now. that would almost be a triple from this level. Still watching and wating for it to move up.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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quote:Originally posted by trade2win: why has etrade restricted buys on this one?
I don't have etrade, but these things seem to pop when the brokers start restricting trades.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
4 different insiders recently filed Form 4's (they bought shares). Usually a good sign. Also it is up 16% today. Chart looks good too.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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Recently (yesterday) the 5 DMA crossed over the 20 DMA. Eariler this month the 20 SMA was the resistance point. Now the 20 DMA is the support. Resistance points are: 0.095 (last peak), 0.1863 (100 DMA), 0.21 (2 peaks ago), and 0.25 (3 peaks ago). It is a lower volume, low float stock. But you should be able to get out if you only buy a $500 or so.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
Slowly trending up. Last 3 days: +2.7%, +6.5%, +3.7% (so far today). Also it has been increasing with lower volume for the past 3 days. Depending on volume, this is trending to hit 9 cents today.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
Ask getting hit again. Above normal volume in last 5 mins all at the ask. Moves with volume, look at chart. 8.5 cents seems to be a bit of resistance. See my posts above for other resistances.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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posted
Up 6% so far from my last post. 4x 10 day volume.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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As of October 31, 2006, the Company had an aggregate of 37,667,528 shares of common stock issued and outstanding.
-------------------- Before you criticize someone, try walking a mile in their shoes, then when you do, you'll be a mile away and have their shoes. Posts: 1450 | From: TX | Registered: Feb 2006
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