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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 thinks that when the subordinated debt can be purchased at a discount, then the remaining subordinated debt should be marked to the same level and the equity impaired.",
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      "text": "It appears that Allied bought senior debt of MVL Group and subordinated debt in United Pet Group and Polaris Pool Systems at a discount. In all of these cases, it appears that Allied continued to hold its existing investments at cost.",
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      "text": "Wilmar Industries's Term Loan tranche B was quoted 86%-90%... Allied at year-end carried its $36 million investment in subordinated debt securities and warrants at cost.",
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      "text": "The company did find interesting opportunities to invest within its own portfolio by providing senior and subordinated capital to existing portfolio companies...",
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      "text": "There's been a couple of portfolios where people have chosen to go out of the business and as we've said repeatedly, our business is that of mezzanine investments...",
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      "text": "\"The company did find interesting opportunities to invest within its own portfolio by providing senior and subordinated capital to existing portfolio companies. The availability of senior debt capital from traditional sources, such as banks, continues to be scarce, and the company had several opportunities to purchase senior or subordinated notes at a discount from lending institutions looking to liquidate or reduce middle market portfolios.\" — Allied Capital April 23, 2002 earnings press release. \"There’s been a couple of portfolios where people have chosen to go out of the business and as we’ve said repeatedly, our business is that of mezzanine investments with a long term illiquid asset class and when people need to engage in a fire sale of assets, those are typically traded at a discount and last quarter we purchased some sub-debt at a discount. And that was simply because of the fire sale phenomenon. It had nothing to do with the credit quality of the companies whose debt we were buying. In fact, it was a huge opportunity for us and very good for the shareholders. Now in cases where we were buying down senior debt where we have a subordinated debt investment, we recapitalize the business and write down the subordinated debt appropriately to reflect the overall value of the business. So it’s not a question of us buying down senior debt at a discount and leaving the sub-debt in place at its previous structure and value. That simply does not happen.\" — Mr. Walton, May 16th conference call.",
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      "text": "Point 6—Purchases of Additional Debt at a Discount",
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