Ross studied the papers of the company which Steve had given him, which would cost RFS. "Fifty million big ones" as Steve said.
Ross looked the package over very carefully, and then looked up at Steve.
"Okay, I looked at it, now, my partner, please described this. I am all ears" Ross said.
Steve sighed. "The net value of the company is fifty million. There is, which would not surprise you, "Some potential debt" I had an energy evaluator examine this. He said. "Twenty five million, and maybe not worth it" However, This company;'s financial situation, makes it such that we can assume their bank debt, make a deal with the bank, and a deal with them, Lets say the company is "worth fifty million, and they owe twenty five. We all know that we would not have to pay either them twenty five million, or the bank twenty five million. Maybe, just maybe, we can talk both down to twenty million each. " Steve said.
"Okay, so a forty million dollar layout, to get a fifty million company Ten million profit. Where is our upside?"? Ross asked.
Steve smiled.
"Simple, those are only wells in Oklahoma and Texas. They have capped wells in both Canada and Alaska, which they could not afford to uncap or drill. According to our geologists, that is another twenty five to fifty million. Not a "bonanza, but a nice little deal, to snare a company, put some investors in it, and replenish our product" Steve said.
Ross sighed, and looked at Fritz. "Mister P, you own one third of RFS, what say you?" Ross said.
Fritz shook his head. "I say that its a piece of shit deal and we should pass, but, if we do our show, and Steven wants to have one conference call, and one meeting about this, and we would come out only benefiting us, I will take the time" Fritz said.
Ross sighed. "Okay, Steve. Sometime tomorrow. Conference call, then in person meeting, with no promises since both Mister P and I are hesitant, agreed?" Ross said./
"Agreed" Steve said.
Steve called the party, made a brief conference call for Tuesday morning, and then dinner that night. They would do only one show on Tuesday instead of two.
"Ross, are you up to doing a show today if I can get together twenty five to fifty people? I know you had a long flight?" " Steve asked.
"Call them, call the field, and then into the SUV. I am fine" Ross said.
Steve called the field, and they got together fifty people, for a show in two hours. Then it was into the SUV and to the field/.
When they got there, Steve lectured to fifty investors.
The people who listened were impressed. Steve gave out contracts to all fifty, with a "possibility of a conference call with another fifty the next week.
As the men went back to OKC Steve said. "I told you it would be worth your while. "
The men went to dinner, then Ross went back to the hotel, and called Kayley.
"Hi, Vice Principal, how was your day?" Ross greeted.
"I'm fine. Are you okay?" She asked.
"Oh, fine a show that might turn out okay. A shaky company that I told Steve we would take one meeting on before we decide anything. It has potential because it has uncapped wells and possibility, but it also has bank debt. I'm concerned, but will be open minded, and listen" Ross said.
"Good, have a good night, R" Kayley said.
"You too , Vice Principal, talk tomorrow night" Ross said as Kayley blew Ross a kiss through the phone.
Ross showered, popped his meds, and kept waking up and falling back to sleep.
The next day, Tuesday, Ross, Fritz and Steve had breakfast.
"Screw the conference call, and we will do the show after. This is more important than any routine show. I was able to schedule a ten am meeting with them, at their office. . Our dress code is fine. I will talk, and please both of you listen. I promise that I will not commit to anything until we have examined it. I know that Ross and Mister P both have your doubts. I completely respect that, and will not even think of moving forward with anything, until we all agree,. Both of you and our company as a whole, are far more important to me than this or any deal" Steve said.
"Thank You, Steven, much obliged" Fritz said.
The men got to the other's party's office. All of the men bumped fists in greeting, and then went into a private office to talk. Everyone sat down, and Steve said.
"Okay, we are here. Please talk, we will listen" Steve said.
The CEO of the company, John, said.
"Gentlemen, thanks for taking the time to have this meeting. You all have seen the story. The company has been appraised at fifty million. We have currently twenty five million in bank debt, which we think can be talked dswn a total of at least one quarter of that. Thus, eighteen million would have to be paid. Would there be a chance we could do a ten million us, eight million you, deal?" John said.
"You all know that we will never pay fifty million. If that is a firm price, the meeting will end now. I was thinking, we knock off twenty five percent off the top, which is forty million price, then, we pay the eight million. Thus, it becomes thity two million for us expense wise, and you walk away with twenty two million after it is all worked out. Its knocking off about sixty percent." Steve said.
"Would you be willing to give us ten percent of the cut if we were silent partners?" John said.
Steve sighed. "I dont like that. Let me consult my financial people, and my attorney . As you know, our partner Ross iives in New York, and is just here for a few days. We will call the attorney, and do a call either later this week or early next week" Steve said.
"Okay, it sounds like its possible" John said, as the men bumped fists, parted, and then Ross, Steve and Fritz headed to the field for one show.
The men were silent, until Fritz said. "I told you,. Steven. piece of shit waste of time deal"
"Mister P, there may be a way to work this out" Steve said.
"Ross?" Mister P asked.
Ross sighed. "Guys, we all know that we need to do a deal or should do a deal to replenish product, but. this deal almost sounds like it does not make sense" Ross said.
"Would you have found a "special way" and done it if this was RossShell before you turned the company over to Vic?" Steve asked.
Ross sighed. "Partner, that is not a fair question. Both of you know that I took unwise chances with RossShell which cost me dearly. I would never do any of those things with RFS, because I value both of your friendships, and our company too much" Ross said.
"I say there is a way to pull this off. Let;'s not be fast on the trigger, and talk when Ross gets home. Lets just do this show, and then Ross can go home. Two shows is enough, and we all have other things on our minds, like, how to get new product" Steve said.
"Agreed" both Ross and Fritz said.
When the men got to the field, another fifty investors were there. Steve again lectured. Twenty signed, not great, but not bad.
Clearly, none of the three partners were bothered by the show. The meeting about the company, was on all of their minds.
Steve drove Ross back to the hotel. Ross called Kayley, checked out, and hopped on a six pm flight to JFK which, with changeover in Dallas, landed at midnight, and Ross was home at 1230.
Kayley was dozing on the bed, soles covered, but she heard him.
"No playing around with the Vice Principal's feet, or the student is in big, big trouble. The Vice Principal is tired" Kayley mumbled.
"Did not even think about that" Ross said, gently kissing Kayley on the lips, as he got undressed, and joined Kayley in bed.
The couple dozed off.
Ross slept until 5 am, and downed a bagel.
Ross was uptight, and antsy,about the less than good OKC trip.
In the "old days" before Vic took over RossShell, Ross would drag himself into the office and "jerk around" as Ross's father liked to say.
Now with Vic running RossShell, there was no such thing as Ross jerking around.
Ross looked at his cell phone, to a text from Steve.
"Dont worry about yesterday. Screw that. Someone emailed me overnight , and I will send to you. Tundra oil deal way up north, maybe Canada, where we could not get hurt by anything which happened with Mister Fish. I will send it to you, and we will discuss later today or tomorrow" John said.
Ross sighed. After a less than good trip to OKC trip, where hardly any signups happened, and there was a waste of time meeting about a company that was weak, what was this "tundra deal "possibly about?"
That would be seen.
Ross looked the package over very carefully, and then looked up at Steve.
"Okay, I looked at it, now, my partner, please described this. I am all ears" Ross said.
Steve sighed. "The net value of the company is fifty million. There is, which would not surprise you, "Some potential debt" I had an energy evaluator examine this. He said. "Twenty five million, and maybe not worth it" However, This company;'s financial situation, makes it such that we can assume their bank debt, make a deal with the bank, and a deal with them, Lets say the company is "worth fifty million, and they owe twenty five. We all know that we would not have to pay either them twenty five million, or the bank twenty five million. Maybe, just maybe, we can talk both down to twenty million each. " Steve said.
"Okay, so a forty million dollar layout, to get a fifty million company Ten million profit. Where is our upside?"? Ross asked.
Steve smiled.
"Simple, those are only wells in Oklahoma and Texas. They have capped wells in both Canada and Alaska, which they could not afford to uncap or drill. According to our geologists, that is another twenty five to fifty million. Not a "bonanza, but a nice little deal, to snare a company, put some investors in it, and replenish our product" Steve said.
Ross sighed, and looked at Fritz. "Mister P, you own one third of RFS, what say you?" Ross said.
Fritz shook his head. "I say that its a piece of shit deal and we should pass, but, if we do our show, and Steven wants to have one conference call, and one meeting about this, and we would come out only benefiting us, I will take the time" Fritz said.
Ross sighed. "Okay, Steve. Sometime tomorrow. Conference call, then in person meeting, with no promises since both Mister P and I are hesitant, agreed?" Ross said./
"Agreed" Steve said.
Steve called the party, made a brief conference call for Tuesday morning, and then dinner that night. They would do only one show on Tuesday instead of two.
"Ross, are you up to doing a show today if I can get together twenty five to fifty people? I know you had a long flight?" " Steve asked.
"Call them, call the field, and then into the SUV. I am fine" Ross said.
Steve called the field, and they got together fifty people, for a show in two hours. Then it was into the SUV and to the field/.
When they got there, Steve lectured to fifty investors.
The people who listened were impressed. Steve gave out contracts to all fifty, with a "possibility of a conference call with another fifty the next week.
As the men went back to OKC Steve said. "I told you it would be worth your while. "
The men went to dinner, then Ross went back to the hotel, and called Kayley.
"Hi, Vice Principal, how was your day?" Ross greeted.
"I'm fine. Are you okay?" She asked.
"Oh, fine a show that might turn out okay. A shaky company that I told Steve we would take one meeting on before we decide anything. It has potential because it has uncapped wells and possibility, but it also has bank debt. I'm concerned, but will be open minded, and listen" Ross said.
"Good, have a good night, R" Kayley said.
"You too , Vice Principal, talk tomorrow night" Ross said as Kayley blew Ross a kiss through the phone.
Ross showered, popped his meds, and kept waking up and falling back to sleep.
The next day, Tuesday, Ross, Fritz and Steve had breakfast.
"Screw the conference call, and we will do the show after. This is more important than any routine show. I was able to schedule a ten am meeting with them, at their office. . Our dress code is fine. I will talk, and please both of you listen. I promise that I will not commit to anything until we have examined it. I know that Ross and Mister P both have your doubts. I completely respect that, and will not even think of moving forward with anything, until we all agree,. Both of you and our company as a whole, are far more important to me than this or any deal" Steve said.
"Thank You, Steven, much obliged" Fritz said.
The men got to the other's party's office. All of the men bumped fists in greeting, and then went into a private office to talk. Everyone sat down, and Steve said.
"Okay, we are here. Please talk, we will listen" Steve said.
The CEO of the company, John, said.
"Gentlemen, thanks for taking the time to have this meeting. You all have seen the story. The company has been appraised at fifty million. We have currently twenty five million in bank debt, which we think can be talked dswn a total of at least one quarter of that. Thus, eighteen million would have to be paid. Would there be a chance we could do a ten million us, eight million you, deal?" John said.
"You all know that we will never pay fifty million. If that is a firm price, the meeting will end now. I was thinking, we knock off twenty five percent off the top, which is forty million price, then, we pay the eight million. Thus, it becomes thity two million for us expense wise, and you walk away with twenty two million after it is all worked out. Its knocking off about sixty percent." Steve said.
"Would you be willing to give us ten percent of the cut if we were silent partners?" John said.
Steve sighed. "I dont like that. Let me consult my financial people, and my attorney . As you know, our partner Ross iives in New York, and is just here for a few days. We will call the attorney, and do a call either later this week or early next week" Steve said.
"Okay, it sounds like its possible" John said, as the men bumped fists, parted, and then Ross, Steve and Fritz headed to the field for one show.
The men were silent, until Fritz said. "I told you,. Steven. piece of shit waste of time deal"
"Mister P, there may be a way to work this out" Steve said.
"Ross?" Mister P asked.
Ross sighed. "Guys, we all know that we need to do a deal or should do a deal to replenish product, but. this deal almost sounds like it does not make sense" Ross said.
"Would you have found a "special way" and done it if this was RossShell before you turned the company over to Vic?" Steve asked.
Ross sighed. "Partner, that is not a fair question. Both of you know that I took unwise chances with RossShell which cost me dearly. I would never do any of those things with RFS, because I value both of your friendships, and our company too much" Ross said.
"I say there is a way to pull this off. Let;'s not be fast on the trigger, and talk when Ross gets home. Lets just do this show, and then Ross can go home. Two shows is enough, and we all have other things on our minds, like, how to get new product" Steve said.
"Agreed" both Ross and Fritz said.
When the men got to the field, another fifty investors were there. Steve again lectured. Twenty signed, not great, but not bad.
Clearly, none of the three partners were bothered by the show. The meeting about the company, was on all of their minds.
Steve drove Ross back to the hotel. Ross called Kayley, checked out, and hopped on a six pm flight to JFK which, with changeover in Dallas, landed at midnight, and Ross was home at 1230.
Kayley was dozing on the bed, soles covered, but she heard him.
"No playing around with the Vice Principal's feet, or the student is in big, big trouble. The Vice Principal is tired" Kayley mumbled.
"Did not even think about that" Ross said, gently kissing Kayley on the lips, as he got undressed, and joined Kayley in bed.
The couple dozed off.
Ross slept until 5 am, and downed a bagel.
Ross was uptight, and antsy,about the less than good OKC trip.
In the "old days" before Vic took over RossShell, Ross would drag himself into the office and "jerk around" as Ross's father liked to say.
Now with Vic running RossShell, there was no such thing as Ross jerking around.
Ross looked at his cell phone, to a text from Steve.
"Dont worry about yesterday. Screw that. Someone emailed me overnight , and I will send to you. Tundra oil deal way up north, maybe Canada, where we could not get hurt by anything which happened with Mister Fish. I will send it to you, and we will discuss later today or tomorrow" John said.
Ross sighed. After a less than good trip to OKC trip, where hardly any signups happened, and there was a waste of time meeting about a company that was weak, what was this "tundra deal "possibly about?"
That would be seen.
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then he would never travel there to look at it.
