All’s forgiven…

July 6, 2006

The proxy that Coinmach (DRY) filed late Friday had some pretty interesting disclosures about loan forgiveness. All told, the company has forgiven over $600K in loans and interest over the past three years to the company’s top executives. The largest bulk of that went to Chairman and CEO Stephen Kerrigan. And, if the pattern continues, there’s likely to be much more where that came from since the proxy notes that the five top executives still owe about $1.2 million. What’s behind the forgiveness? Various things, including relocation costs and stock, though the filings are a bit short on details. Also interesting is that while most of the loans carry an interest rate of 7%, those given to President and COO Mitchell Blatt carry an 8% rate.

One other interesting thing about Coinmach’s proxy. While the stock has done well, it hasn’t done quite as well as the chart in the proxy statement would lead you to believe. Here at footnoted.org, we’ve seen that pattern before and it hasn’t been pretty.

P.S.: Thanks to everyone who helped me mark the big four-oh 39B yesterday! Your thoughtful words and donations were much appreciated!

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