Tomorrow is the Deadline for the Grubb & Ellis (GBE) Consent Solicitation

Tomorrow, March 21st at 5:00 pm New York City time, is the deadline for the Grubb & Ellis Company's (GBE) solicitation of consents from the holders of its 7.95% Senior Convertible Notes Due 2015.

It will be very revealing to see what fraction of the noteholders grant their consent in exchange for the company's first consent fee offer. In my opinion, the noteholders have a great deal of leverage and should hold out for more compensation (or just not consent at all).

If this first offer is rejected, that will be very bearish because it can be expected that the company would probably raise its offer, which would mean even more dilution for shareholders if paid in shares of stock.