https://ir.brileyfin.com/2025-07-01...ximately-15-Million-via-Private-Bond-Exchange Geez I would have loved to be a fly on the wall during the negoatiations for this LOL
A few thoughts... Who is this "institutional investor" and why have they waited so long to write down?? It reminds me of commercial real estate...Kicking the can down the road. My other thought goes to auto finance companies. They take back the car. They then send it to auction with a minimum price. The car doesn't sell, so they keep resubmitting to auction. They won't write it off until they absolutely have to... PS Ever wonder why credit unions are not making car loans now...
About five years ago, Tupperware got into deep financial trouble, and there was lots of talk of a bankruptcy. The company ultimately did file bankruptcy in September 2024. But it did not happen in 2020, when people were talking about it. In 2020, Tupperware had lots of bonds outstanding, and like the Riley bonds, the price tanked on speculation about bankruptcy. The bonds had a maturity in 2021 or 2022 or something. Tupperware did a tender offer on the bonds, allowing any bondholder to surrender them for about 60 cents on the dollar. These were $1000 OTC bonds (not $25 baby bonds). The tender was optional, and bondholders could tender some, or all, or none of their bonds. It was an example of the tragedy of the commons. If no one had tendered their bonds, the company may very well have had to declare bankruptcy, and all of the bondholders probably would have gotten less than 60 cents on the dollar. And the most equitable outcome would have been for all bondholders to tender all of their bonds. Of course that is not what happened. Some bondholders tendered all their bonds; others did not. Some bondholders tendered only some of what they were holding. Some bondholders decided to hold out, and tendered none of their bonds. Some months after the tender off was completed, the company called the remaining bonds, redeeming them at the full face value. Bankruptcy was avoided. At least for a few years. So those who chose to take the tender off effectively bailed out the company. This greatly benefitted those who held out and did not tender their bonds. Something very similar may well happen with Riley. Riley is not doing a public tender offer at this time. But the private debt exchanges may well allow the company to avoid a bankruptcy. At least for a while. At least long enough for some bondholders to get paid in full.