Russo Park name OK'd, with conditions

[cajunhawk]

Superior aquired Stabil Drill long before these other companies were established. This has only been going on for about 8 years.

Makes even more sense, that they created it after the sale to Superior. Boy howdy...that does not look good. It even sets up motive for the scheme...standard of living. That one time sale made life pretty fun. I've never been rich, but I would think taking a step down money wise would suck something fierce. This sucks...on so many levels.

[VObserver]

http://www.theadvertiser.com/story/n...raud/83509842/

Scott says we don't "anticipate" any problems. I hope he is right.

I am sure he doesn't. That statement does not reassure me, however; since he also did not foresee conference realignment [3 times], problems with the proposed CST contract, problems with the last time we were ready to upgrade Moore or problems when he told Lotief to take a hike.

[CajunEXPRESS]

To be kind to Farmer he's a lightweight and not up to his Job in the 21st century. He may have been OK in 1976, but the job since musical conferences is so much bigger.

[CajunStros]

I am sure he doesn't. That statement does not reassure me, however; since he also did not foresee conference realignment [3 times], problems with the proposed CST contract, problems with the last time we were ready to upgrade Moore or problems when he told Lotief to take a hike.

Yeah, time will tell. I was being a bit facetious as well.

I'll feel better when the heavy equipment moves in.

[ZoomZoom]

http://www.theadvertiser.com/story/n...raud/83509842/

Scott says we don't "anticipate" any problems. I hope he is right.

Not a Farmer fanatic, but what else could he say, material ordered for the stadium, team in the middle of the season? I'm with you, hope he is correct.

[Rebel02]

Everyone needs to go and read post 50 in this thread. Seems it got lost in the shuffle by those who still think this thing won't happen.

[CajunEXPRESS]

If this stadium were a lead lock Farmer wouldn't use cautionary language like 'confident'.

Robe has been in the dark before. Remember the day he tearfully acknowledged the original redo wouldn't happen.

[VObserver]

Everyone needs to go and read post 50 in this thread. Seems it got lost in the shuffle by those who still think this thing won't happen.

There are far worse problems than 'this thing not happening'... Like this thing happening and the University having to come up with 10 mil it doesn't have. And that's without getting into the 'why' we don't have it in hand already.

[wcd35]

There are far worse problems than 'this thing not happening'... Like this thing happening and the University having to come up with 10 mil it doesn't have. And that's without getting into the 'why' we don't have it in hand already.

$5 million unless that has changed as the price went up

[Cajunfanatico]

After reading the article with more in depth info, I wonder if Stabil Drill has a controller set up under the CFO? ____ like this usually happens when the CFO's reach extends too far into the bowels of the company, where they should not be. CFO's are usually sharp financial minds who, when left to their own devices can get themselves in hot water. Idle hands are the devil's playthings.

I would also like to know if Superior had a full bore Financial Statement Audit done on Stabil Drill before Consolidation? An extra set of eyes would have caught this. I know for a fact that audit statutes call for a vendor list showing concentrations of where the company is spending there money. Again this may have all been lost in Consolidation. Don't skimp on accounting...it can save your ___.

When I sold my company to a NYSE-traded firm, all final number crunching was transferred to the parent. That's to say, my accounting department became a simple conduit for monthly income and expense numbers, nothing more. Final monthly numbers including depreciation, employee withholding, state and federal tax liabilities etc were all calcuated by the parent and presented to me at monthly meetings held in Houston. And for the record, before the sale took place I paid to have my previous 3 years of financial statements audited by a major firm out of Houston. This was, of course, to give any potential buyer more confidence that they were getting what they paid for.

I also recall the day of the sale signing non-compete, non-disclosure, patent protection and a myriad of other forms I don't recall protecting the parent and tying my hands. I'm sure that's pretty much standard procedure, especially for companies operating under SEC guidelines.

[HelmutVII]

There are far worse problems than 'this thing not happening'... Like this thing happening and the University having to come up with 10 mil it doesn't have. And that's without getting into the 'why' we don't have it in hand already.

Yes sir that is indeed the problem. I can see where we might have steel (or other materials) etc ordered and delivered and then have to be stored someplace while they have to raise $5 million to finish the job. In a perverse way it is probably good that this hit the fan BEFORE the job got started because we could find ourselves with a demolished stadium and no money to rebuild. This is pure speculation on my part because, according to my understanding, the Russo donation was 5 million over five years. Because of this, it would appear that the university would have had to have a bridge loan or some other form a financing to cover the remaining construction costs over a five year period. Problem being the financing was set up with the $5million on the come.

[Cajun90]

There are far worse problems than 'this thing not happening'... Like this thing happening and the University having to come up with 10 mil it doesn't have. And that's without getting into the 'why' we don't have it in hand already.

Well I wasn't going to go there...however charitable donations can be subject to clawback laws regarding "bad actors" and they usually have a 2-6 year timetable. I'll guarantee you there are some attorney's for UL checking on the potential exposure and if not shame on them. IF the money were in hand then I'd say there would be potential protection from insurance coverage. For money not in hand it could get tricky because there is an expectation that you "should have known" the monies were subject to legal proceedings.

I'm not an attorney but as a business person I understand the allegations being made and potential consequences. Based on what is in the suit I think there is something there but that does not mean people acted in bad faith. It just means people didn't act in accordance with established accounting practices which can happen for a number of reasons. However we all know the courts really don't care about excuses. I suspect there will be fallout however I would be shocked if the numbers approach anything close to what is being alleged in the lawsuit. It is typical and a really a responsibility for the plaintiff's to throw the kitchen sink at the whole mess. Lawsuit payouts rarely go up from what is being asked but almost always go down from what is being asked. In this case they seem to have said every single dime of money that went to any of the secondary companies was completely fraudulent. The more likely scenario is that transactions were not "at arms length" and as such discounts/profits were moved between corporations in an illegal manner. That leaves exposure to a percentage of the transaction and not the whole transaction.

With all that said the money to defend this lawsuit along with probable SEC investigations is going to be in the 100's of thousands at a minimum.