ROFR question

[lionqueen]

Hi everyone. I had a quick question about ROFR. I put an offer on a resale and it was sent to disney on August 26 for ROFR. I believe they have 30 days? Would that be 30 business days or 30 calendar days? Just trying to estimate when we should find out our fate I wasn't nervous since it was an OKW contract and OKW hasn't been refused in quite a while BUT I just saw a thread saying that 3 OKW contracts were refused in August! Now i'm a little nervous. thanks for your help!!

 

[JWG]

Calendar days. Average time to decision is 21 days or so.

 

[juncker]

... and if they don't reply in 30 calendar days, then by default you pass.

 

[Foobus]

There does seem to be an increase in ROFR activity over at OKW (of course when the baseline was virtually no activity - any ROFR'd contracts is a major increase), and one does has to wonder what is up with that.

I'm with you waiting on an OKW contract ($52/pt went to ROFR 8/29). In the same time period that they grabbed the recent OKW contracts, it's been about 14-17 days wait time as well, for whatever that means.

Trying to understand the workings of the dread and mysterious ROFR will only give you a headache. Let's hope that soon both of us will be passed that and heading for home...

 

[lionqueen]

Our's was sent in on August 26 so we should hear about the same time. keeping my fingers crossed!!

 

[Foobus]

Might I ask what your contract looks like? As our contract has some banked points from 2010 and really fit what we wanted to do - I didn't try to negotiate below the $52 - as the $700 or so we might save (on a contract in which we will pay something over $30,000 MFs over 30 years) just didn't seem worth it to entice the ROFR beast. As I'm sure you saw, several larger OKW contracts contracts in the low $40s and some smaller ones up to $50 a point have been grabbed by DVD in the last few weeks. I'm feeling reasonably safe at $52, but you never can tell what the ROFR might do. Good luck!

 

[lionqueen]

our's is 160 point contract. we offered $45 per point. it has all 2011 and 2012 points. hope we didn't offer too low!

 

[Foobus]

Traditionally you'd be fine - and even with a bit of activity in that range you'll probably be closing a pretty nice deal in a week or so.

Let us know how you fare, and good luck!

 

[Dean]

Actually as I read the legal language, they have up until the date of closing or 30 days which ever is longer. In practice it has been 30 days though.

 

[JWG]

Actually as I read the legal language, they have up until the date of closing or 30 days which ever is longer. In practice it has been 30 days though.

Umm... isn't that a bit counter intuitive? up until closing or 30 days, which ever is longer.

So, I could close before ROFR and then rescind the contract from me?
Would Disney then have to pay me instead of the original owner?

 

[Dean]

Umm... isn't that a bit counter intuitive? up until closing or 30 days, which ever is longer.

So, I could close before ROFR and then rescind the contract from me?
Would Disney then have to pay me instead of the original owner?

IIRC the wording is that you have to submit for ROFR at least 30 days before closing. No restriction on 30 days and as written, I interpret that they could take it after 30 days if they chose.