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  "documentTitle": "Allied Capital (ALD)",
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  "authorName": "David Einhorn",
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  "presentationDate": "2002-06-17 00:00:00",
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      "text": "Greenlight believes both anecdotal evidence and methodological valuation flaws suggest that Allied’s portfolio investments have not been marked to current “fair value” according to Allied’s own standards or as required by the Investment Company Act of 1940.",
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      "text": "Point 1—Velocita, Inc. Velocita, Inc. (formerly P.F. Net) is an investment that was sponsored by Cisco. On the May 16th conference call, Mr. Walton said, “We do understand that Cisco has written down its investment. But Cisco is in the equity, which of course is the first thing to go in a troubled telecom situation. We’re in with a fairly sophisticated group of bondholders here and we think there are some interesting recovery possibilities.” Mr. Walton’s statement is misleading. In fact, in addition to its $200 million equity investment, Cisco also holds $50 million of Velocita’s vendor financing facility. This facility is senior to Velocita’s publicly traded bonds and equity warrants that Allied owns.",
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      "text": "Greenlight suspects that Allied has not taken certain losses on its financial statements that it should have taken. Greenlight believes both anecdotal evidence and methodological valuation flaws suggest that Allied's portfolio investments have not been marked to current “fair value” according to Allied's own standards or as required by the Investment Company Act of 1940.",
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      "text": "“We do understand that Cisco has written down its investment. But Cisco is in the equity, which of course is the first thing to go in a troubled telecom situation. We’re in with a fairly sophisticated group of bondholders here and we think there are some interesting recovery possibilities.” — Mr. Walton",
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      "text": "13 Velocita, Inc. Form 10-K, December 31, 2001, Note 6. Credit Facility, p. F-15.",
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