Topic: [GLBSE] BDK.BND (1%/week) *IN DEFAULT* - page 6. (Read 17514 times)

Dividends paid.

Issued: 10873 bonds (1087.3BTC FV)
Interest Payment: (1087.3*.01)=10.873BTC

Next Payment Date: July 9th

Dividends paid.

Issued: 10773 bonds (1077.3BTC FV)
Interest Payment: (1077.3*.01)=10.773BTC

Next Payment Date: July 2nd

In case anyone was wondering, it was I who sold a small quantity of bonds ~6h ago. 460 additional bonds were sold. 10773 bonds are now out in the wild. The sale does not reflect a change of my intention to buy back the bonds within a week (still waiting on large repayment), but I needed ~45BTC to finish covering a 250BTC loan to someone.

Dividends tomorrow (Monday). Cheers!

Fwiw, the end goal is to re-release BDK.BND @ .65%/wk (roughly 2.625% monthly, little over 40% per year - assuming you reinvest dividends -- without reinvestment, ~2.6% monthly, 33.8% annually). I intend for this to be the one and only reduction in rates, and in the contract, 6 months will be required to elapse before I recall the bond. 1%/wk is doable for now, but I'd prefer to allow allow investors to "set it and forget it," and this rate should be acceptable for many months, perhaps years. Some extra breathing room makes me happy, too.

The future BTC CD rate is intended to be 3%/32D, 6.75%/63D. The future USD CD rate is intended to be 1.25%/32D, 3%/63D. Bonds and CDs will, in some way, be allowed to convert to each other once everything's sorted out for the re-launch, which probably won't be until early August (+- a month) -- buyback will occur as soon as I get the funds I've requested back, which should have been nearly a week ago....

The BTC prime rate (minimum lending rate, reflects only BDK's opinion) is expected to be set at 3.55% per month, ~0.1267%/day. The USD prime rate (minimum lending rate, reflects only BDK's opinion) is expected to be set at 1.6% per month, ~.057633%/day.

Thus, for USD loans, a most creditworthy business can expect to pay ~51.985% annually for BTC loans. For USD loans, that rate will be ~20.983% annually. For comparison, SMB loans in the US are typically made with the business paying ~6-10% annually in interest. Meanwhile, US credit cards, which are more in line with what BDK-BLoC seeks to compete with, charge ~11-23% annually (avg is 14% or so for business cards). We'll get there eventually.

I agree with cytokine that there was no harm, as the holder of a few BDK.BND shares myself, and I'm not opposed to private or partial buybacks. However, I don't see how you can read the contract that way. Clearly bonds were sold back to the bond-holder, without meeting the conditions listed under "buyback"; namely, that (a) all the bonds will be bought back, (b) at a price of 0.101 BTC each, (c) using the forced buyback feature. Perhaps the intent was merely to reserve the option of a forced buyback, while leaving open the possibility of other, voluntary buybacks, but in that case the contract should probably have said so explicitly.

For what it's worth, I think I would have worded the quoted clause more along the lines of "No guarantee is made that bonds can be sold back to the bond-holder, except in the case of a buyback."

wording seems 100% to me

"... Bonds cannot be sold back to the bond-holder except in case of a buyback. ..."

I read that as you cannot bitch to Kluge asking for him to buy your bond back at any time. He is free to do a buyback/part buyback whenever he feels like it. At least that's how I read it. and yes I do hold some BDK,BND

So personally I don't see any breach or contract.

Right. I was trying to make two points -- I won't change the contract (particularly, the rate) unless every bond is bought back, and bond-holders can't sell bonds back to me whenever they want (that is, it isn't a demand deposit).

Sorry about wording it poorly. If anyone has a reasonable claim to reparations as a result of the breach of contract and can prove actual damages, I'd be willing to hear it out (keeping in mind that I still wouldn't buy back all bonds any earlier if I didn't do this deal with cyto). I'll be more mindful of what I write in the future. (thanks, Cytokine)

For the record, I was the one that sold these bonds back to Kluge @ .1 each. He had shares of COGNITIVE that I really wanted so I did a swap.

The BDK.BND contract was most likely intended to mean that bond-holders should not expect or demand a buyback without a change of contract. However, there is some truth in what you say since there is some ambiguity simply due to wording ( it is very difficult to properly word an investment contract ).

However - and this is the bigger point - clearly my selling these back to Kluge in no way harms other holders of BDK debt; if anything, it helps them because having Kluge get a better deal makes it that much more likely that he will be able to honor the rest of his outstanding debt. If there's no victim, then no harm is done. Kluge is an honest guy and he wouldn't go against his word to harm his investors.

The contract listed on GLBSE (https://glbse.com/asset/view/BDK.BND) would seem to prohibit private and/or partial buybacks:

6054 BDK.BND units were just bought back privately, leaving 10313 bonds in the wild.


Cheers,

Ben

I'm expecting to receive quite a few coins within a week. If so, I will buyback all bonds @ .101/unit as soon as I get it, as specified by the contract. If I don't get the coins within a week, I should get them "soon." If I get the coins and initiate a buyback on a Sunday or Monday, I'll pay .102/unit (if on a Monday, I will not pay dividends that day).

BDK.BND will likely be reissued at a later time at a reduced rate. In the meantime, if I need funds, I will begin selling CDs again. I am not currently selling CDs, though I'm renewing existing CDs. Upon BDK-BLoC launching, CD sales should be handled automatically on the site, and sales will definitely resume at that time, though at a reduced rate. BDK.BND will likely relaunch a couple weeks prior to BDK-BLoC launching, which could be as soon as in two weeks, though likely in a month or two.


Cheers!

Dividends paid.

Issued: 16367 bonds (1636.7BTC FV)
Interest Payment: (1636.7*.01)=16.367BTC

Next Payment Date: June 25th

You favor the theory, I practice it. I have very low amounts of BTC available, so placing a bid on something which won't get fulfilled for a month and even then only net me a few bitcents is less profitable than simply putting the money in BDK.BND

Dividends paid.

Issued: 16367 bonds (1636.7BTC FV)
Interest Payment: (1636.7*.01)=16.367BTC

Next Payment Date: June 18th

Fair warning -- It's probable I'll be initiating a forced buyback @ .101 in 45-120 days. CD rates will also be reduced at that time, though CDs are currently not for sale (I'm also not issuing BDK.BND, though that's also because the security's still restricted by GLBSE). I have too much OPM and interest rates have been dropping in the Bitcoiniverse far faster than I anticipated.

Dividends paid.

Issued: 26367 bonds (2636.7BTC FV)
Interest Payment: (2636.7*.01)=26.367BTC

Next Payment Date: June 11th

Alright. Let me update my position. I understand and apologize both for being unclear, and lazy.

Even if there is only one bond left on GLBSE, I will always pay bond-holders on GLBSE. They'll have the ability to switch if they please, and I'd certainly prefer it, but it will not be necessary.

ETA: Further clarification. While actions such as issuance of new shares (assuming contractually valid) will occur on the "primary" exchange, in the event of something like a buyback, I will pay holders of the security on BOTH exchanges the appropriate amount.

ETA2: I am not speaking for JRO, however. How he decides to go forward is his decision - so I'm only speaking for BDK & BDK.BND.

Yes, I am talking about the "hard deadline."
No, it doesn't. To clarify, I've perceived this as the upcoming sequence of events:

• Hermes opens
• Dividends continue to be payed on GLBSE
• "Shift" period from GLBSE to Hermes
• Final "hard deadline" at which point dividends are no longer paid on GLBSE. Investors who did not move their bonds to HERMES are left with nothing.

#4 violates the contract, specifically:
I ask mainly because I foresee a vacation (I have no problem with moving to Hermes), and hell if I'm selling out of the bond at 0.08.

As I've stated multiple times, I will still be paying dividends to GLBSE bond-holders, at least until the "hard deadline" hits which'll likely be at least 2 months out, and I'll provide lots of updates, probably still pay dividends to bond-holders after the deadline if there's more than a few bonds out. However, we're now in talks with GLBSE again to keep things listed there with all our restrictions lifted. When we transfer, then, if GLBSE, Icehill (Kronos/Hermes), and I come to an agreement, however, there will be no need for a manual transfer scheme and it can be done fairly easy, where GLBSE bond-holders get a code, enter it on Hermes, and their bonds on GLBSE will disappear, reappear on Hermes.

I don't believe the contract states which exchange the bond must be listed on. While this may inconvenience bond-holders, if significant volume remains on GLBSE, I'll always pay dividends to bond-holders on GLBSE.

There goes all of the value (highest bid is .08) of what I thought to be my most stable asset
So to get this straight, you will stop paying dividends on GLBSE, and we will not continue to receive them unless we go through the manual transfer to Hermes?
If so, I believe that's a violation of the contract. I'm specifically interested in the last part:
But it sounds like you are not going to place a buyback