Skip to main content

Exact terms of the deal could not be learned, but people involved in the talks said the transaction was worth about $200 million. Bank of America led the financing..

Blackwater/Xe Services, LLC Acquired by USTC Holdings, LLC

NEW YORK--(EON: Enhanced Online News)--USTC Holdings, LLC, an investor consortium led by private equity firms Forté Capital Advisors (“Forté”) and Manhattan Partners (“Manhattan”), announced today that it has acquired Xe Services

Jason DeYonker, Managing Partner of Forté...advised PRINCE through development of his early BLACKWATER business plan and expansion of the Moyock training facility, as well as supporting negotiations of its first training contracts with U.S. government agencies. (some paraphrasing)

Bingham McCutchen acted as legal counsel to USTC Holdings and the Chertoff Group in collaboration with Avascent Group performed strategic due diligence on USTC Holdings’ behalf.
The Chertoff Group!  Give us a freakin break!

Bank of America, the slimiest home forecloser in the country has no problem handing over $200,000,000 to Eric Prince for his Xe and millions to help private equity firm, Cerberus (Dan Quayle) to purchase DynCorp.  

Talk about blatant Oligarchiness.

But God Forbid,  BoA would help a family who, through no fault of their own because banks refuse to finance businesses was laid off, STAY IN THEIR DAMN HOMES!!!!

Is any average American still doing business with these people?  If so, why?

Ok, breathe, breathe, Auuuuuummmmmmm   Auuuummmmmmm, back to the point of the diary.

Well, you are probably thinking "Prince sold that for peanuts".  Not to worry, Erik's doing well.  Xe sells aviation unit to AAR for $200 million. That division has a fleet of 58 aircraft, many of which are used under U.S. government contract in Afghanistan.  I wonder if Bank of American backed that sale, too.

Who the hell is running things like XE, while using our tax dollars to pay for their (mis)adventures?  And if the owners are private and/or secret, how can we know we are safe from their influence?

Michael Chertoff, et al?

Maybe knowing who is a waste of time, time better spent building forts and motes to protect us from the US working for all these spooky private equity firms!  As it is our dollars being used to enrich a few, who then use that money to buy up more and more of our so-called national security apparatus, we become more vulnerable.  Are we frackin nuts?

I SMELL A MILLION RATS.  Don't you?

Who now controls the Large XE Mercenary Army and all of its holdings?

I am sorry to report that I came up blank.  Knowing a tad of CIA history, is it possible that the CIA, operating under cover of private, opaque holding/equity companies now owns XE?  Many of it's staff are former CIA staffers, so it's not a totally stupid question, is it?

And if so, what would that mean?

I tried to track down some background on USTC, Forte, and the Manhattan Partners.

The results for USTC Holdings, LLC

"0" hits, no company recognized
However, USTC Holdings, LTD shows:
, China

No information

About USTC Holdings, LLC
USTC Holdings, LLC is an investment holding company led by Forte Capital
Advisors and Manhattan Partners formed for the sole purpose of facilitating
the acquisition of Xe
and its core operating subsidiaries.
Thanks to Catte Nappe for finding this information.

The results for Forte' Capital Advisors

"0" hits, no company recognized
The results for Manhattan Partners
"0" hits, no company recognized
If it hadn't been for the great reporting of eonbusinesswire, we would have no names regarding the huge news of XE/Blackwater being sold on December 17, 2010.

The NYTimes also caught the story:

A team of New York Times reporters has identified the investors who are set to take over Erik Prince’s enormous mercenary business in a $200 million deal financed by Bank of America.
Bank of America:  $200 Million to finance the purchase of Xe by DeYonkers, who managed the Prince Family  $100 million holdings, and coached Eric on starting the business AND who helped get contracts.

MERRY CHRISTMAS and Happy New Year to Erik Prince and his Dubai Family.

Oh, and to you, too, Mr. Chertoff.

ATTENTION RESEARCH WONKS:   THIS IS THE MOST POWERFUL TOOL I HAVE FOUND TO FIND OUT WHOSE WHO IN BUSINESS, BOTH PUBLIC AND PRIVATE:
http://investing.businessweek.com

If there is a company you want to trace, the 'investingbusinessweek' link found in the intro above will thrill you.  I share this because I watched our friends over at Democratic Underground struggle to find this information.

For some crazy reason that I can't figure out, I will never be able to contribute at DU.  After trying many times, and I am no slouch at figuring things out, the DU system is hell bent on blocking me out.  Shared to explain why this isn't offered at DU.

You will find CEOs, Board Members, recent acquisitions, and a host of other information.  There's an interactive feature I particularly enjoy:  You can find the other relationships a CEO or Board member might have.

I learned about this site and its powers when researching the sale of Dyncorp by Veritas toCerberus, both private equity firms.

I wrote a diary about how our national security has not only been privatized, even though it has been paid for with our tax dollars, but it is now mostly held by opaque, perhaps secretive private equity firms.  

It galls me that our tax dollars, and soon our Social Security and Medicare dollars, pay for the creation of companies like Blackwater.  Our government uses our money, funnels our $$ into the coffers of privately owned, secretive companies, enriching the Eric Prince's, while we slip further and further into a third world status.  There is something really wrong with this.

While there, I also learned that James "Dan"forth Quayle JD was not only the Senior Advisor of the Board of Directors of Cerberus, but that he had 59 "other relationships".  Veeeeeery interesting, and a very powerful rich man is Dan. But that's another whole story.

And it must pay to have a Former High Ranking Man like Dan on the Board, because the Banks fully financed the Cerberus Dyncorp purchase:

Cerberus plans to use as much as $1.17 billion in bank debt to finance its buyout of DynCorp.

Bank of America Corp.

Citigroup Inc.,

Barclays Plc; and

Deutsche Bank AG

committed to provide a senior secured credit facility consisting of a $565 million term loan and a $150 million revolving credit line, DynCorp said today in a regulatory filing.

The banks also agreed to back $455 million in senior unsecured term loans

We are watching the slow takeover of national security, but refuse to admit it, imo.

Without accountable, government operated national security what will we become?

Originally posted to War on Error on Fri Dec 31, 2010 at 01:35 PM PST.

Tags

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site