Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
listened to the haring but I could not hear what the creditor committee had to say. did anyone hear it ?
hearing today at 10 am central time
From Isgur's page:
6. Telephonic Participation:
a. Dial in at least 5 minutes before your hearing is scheduled to begin.
b. Parties are always permitted to participate by dial-in without any permission or notification to the Court except:
i. Dial-in participation is not allowed for chapter 13 panel hearings.
ii. Witnessesmaynotbepresentedbydial-inandwitnessesmaynotbeexaminedby telephone, except in emergency situations if the Court determines to waive this prohibition for good cause.
iii. Parties may not participate by cell phone, but may listen to hearings from their cell phone..
c.
Parties participating by speakerphone must assure that no background noise is transmitted. Accordingly, no typing, intercom announcements, or other interruptions should occur. If such interruptions are unavoidable, then speakerphone usage is not permitted.
d. Do not place your telephone on hold. If you dial in to a hearing, you are participating in a court proceeding and are bound by the normal rules of courtesy and attention.
e. If a technological problem arises, the hearing will continue without the participation of dial- in participants. The Court will not delay hearings for signal problems or interference. Accordingly, persons choosing to attend a hearing by dial-in do so at their own risk of a technological failure.
f.
Starting January 1, 2012, the following procedures must be used for dial-in participation.
i. The dial-in number is 1-712-432-3100. You will be responsible for your own long-distance charges. This dial-in number should be used regardless of the location of the hearing (Houston, Brownsville, McAllen).
ii. You will be asked to key in the conference room number. The conference room number is 815978. Once this number is entered, you will be connected live to the courtroom.
iii. Once you are connected, you will be able to hear persons speaking in the courtroom and other persons on the call addressing the Court. You will not be able to address the Court until the Court addresses you or you request to speak and the Court grants the request.
iv. If you wish to address the Court, you must press 5*. Do not press 5* until you need to address the Court. Within 5 seconds, the Court will receive a signal that
Court Procedures (Judge Marvin Isgur) Revised December 23, 2011 Page 3you wish to speak. When the Court calls on you, you will hear a recorded message that your line has been unmated. At that time, you can be heard.
v. When you are done, the Court will again terminate your ability to speak. You may press 5* if an additional issue arises that you wish to address with the Court.
ABANDONMENT of gomez
http://www.kccllc.net/documents/1236187/1236187130522000000000017.pdf
Trouble in paradise?
From the agenda,
c. Status: Status conference; the Debtor has continued the evidentiary hearing on its Sale Motion to Tuesday, June 4, 2013 at 9:30 a.m.
use this for an example just change the words...
put instead that you do not think the assets should be sold for the benefit of one creditor etc etc speak from the heart :)
no emails use the address on the letter
here is the link
http://www.kccllc.net/documents/1236187/1236187121017000000000020.pdf
just read it thanks hopefully we get a update thursday
Read the agenda for the 23rd, maybe a new twist!
What format should I write it in? what should I include in the letter? and how should I address the judge? Also do I email?
Thanks
http://www.munsch.com/files/1610223_1.pdf
• The credit bidder should consider including enough extra cash in the transaction so that unsecured creditors get some recovery and/or the debtor can wind down the estate prior to becoming administratively insolvent. Otherwise, the debtor and the credit bidder should expect a hotly contested section 363 sale as they have left the unsecured creditors with no option but to accept a zero recovery.
no doubt in my mind if we had a lot of people send concerns to the judge via a letter it would help our case.
this is how the equity committee was formed people sent letters of concern.
I agree they have not even tried to put out a plan. very crooked management/lawyers
assets are appreciating in value this alone should stop the 363 sale. but I doubt it will be looked at.
please send word to the judge
Maybe you should sent a note to the judge!!!!!!!
Before it is to late!!!!!!
Total assets at $2,966,877,213?? Also, the net income seems positive "enough" to pay off the DIP lenders however long it takes. Approving the sale is allowing the DIP guys to steal the company.
I think the judge is going to strike down the sale and not let the DIP guys steal this when there might be a REAL chance that 2nd liens and below might also get paid. Why?
Reorganization is the only fair option with the DIP guys eventually getting what they want and the 2nd lien holders getting what they want (don't know about the preferred and commons). Not to mention the NOL and BP lawsuit settlement (however little it might be)
Something is very fishy. A reorganization has not been attempted and the company is in chapter 11?. Is this even lawful? Think of the multiple class action lawsuits by the equity and bond holders.
I thought reorganization was a priority before liquidation...
it wouldn't hurt if we all sent a letter to the judge with this in it voicing our concern! might make a diffrence
Hon. Marvin Isgur
United States Bankruptcy Court
Southern District of Texas, Houston Division
515 Rusk Avenue
Houston, TX 77002
In re ATP Oil & Gas Corporation, Case No. 12-36187
"A strong showing must be made in order to justify the sale of substantially all of the debtor's assets prior to confirmation of a plan of reorganization. Such a sale occurs without the disclosure, solicitation, voting, and confirmation process connected with confirmation of a plan of reorganization. The appeasement of major creditors is not a sufficient justification for the sale of substantially all assets of the estate outside of a plan of reorganization."
"Several courts have identified the following four requirements must exist in order to satisfy the "sound business purpose" test: (1) sound business reason; (2) accurate and reasonable notice; (3) adequate price; and (4) good faith."
By Jacqueline Palank A Wilmington, Del.,
ATP Oil & Gas Corp. (ATPAQ) will return to bankruptcy court Thursday after delaying a hearing on a sale that has drawn the concerns of federal authorities and creditors. Lenders led by Credit Suisse have offered about $690 million for ATP's deep-water drilling assets in the Gulf of Mexico as well as stakes in operations in the Netherlands and Israel. ATP delayed bringing the deal before the Houston bankruptcy court after unsecured creditors called for more cash in the deal, which largely consists of debt forgiveness. ATP must also address the U.S. Department of the Interior's concern over who will clean up the drilling assets that are left behind when the sale closes. ATP filed for Chapter 11 bankruptcy protection last year, loaded with debt and operational issues following a drilling moratorium ordered after the 2010 Deepwater Horizon catastrophe in the Gulf of Mexico.
Also Thursday, the Reno, Nev., bankruptcy court will consider approving $495 million in exit financing for Ahern Rentals Inc. The construction-equipment company has lined up a $350 million senior secured revolving loan and $145 million term loan to help pay its creditors and emerge from the Chapter 11 case it launched in December 2011. To secure the loans, Ahern is asking the court to let it pay the revolving lenders, including Bank of America, $3.045 million in fees, while the revolving lenders would receive $5.675 million. Ahern is hoping the exit financing and its restructuring plan will trump a competing plan put forth by its bondholders. Owner Don Ahern is trying to keep control of a business started by his father in the 1950s, and his plan would pay off the company's top lenders the full $111.5 million they are owed in cash. The bondholders' plan, meanwhile, would allow the group to take over control of the company, and, in exchange, they would forgive $267.7 million in debt. If he loses his ownership stake, Mr. Ahern has threatened to start a new company, which bondholders acknowledged is something that would pose a risk to their plan's viability. -Peg Brickley and Yogita Patel
contributed to this article.
bankruptcy judge on Thursday will consider confirming School Specialty Inc.'s (SCHSQ) restructuring plan. The seller of school supplies, classroom furniture and other education items is hoping to exit Chapter 11 protection under the ownership of its bondholders, who will trade their debt in for new stock in the restructured company. Specifically, the bondholder group that provided School Specialty with a $155 million bankruptcy loan will receive 87.5% of the new common shares and $88 million in cash. All bondholders, owed $170.75 million on bonds issued before School Specialty's bankruptcy filing, would share in the remaining 12.5% of new shares under the plan. General unsecured creditors owed $20.9 million and trade creditors owed $35.56 million are each expected to recover 20% of their claims, although trade creditors may increase their recoveries to 45%. The current shares in School Specialty would be canceled, and those holders aren't slated to receive any payment under the plan. Also at Thursday's hearing, the Greenville, Wis., company will seek approval of $300 million in bankruptcy-exit financing. The loans will help the company make the creditor payments required by its restructuring plan.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com) Write to Jacqueline Palank at jacqueline.palank@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires (END) Dow Jones Newswires May 17, 2013 13:31 ET (17:31 GMT) Copyright (c) 2013 Dow Jones & Company, Inc. 051713 17:31 -- GMT Story ID: MAY172013_DJB_02LI Keywords: BANKRUPTCY-RELATED FILINGS, CHAPTER 11 BANKRUPTCY FILINGS & CASES, CORPORATE ACTIONS, ALL COMPANY NEWS, CORPORATE RESTRUCTURINGS, ENERGY, INDUSTRIAL Symbols: ATPAQ, CFDAY, CS, CSGN.VX, SCHSQ
I don't think they sold the Subs which were not in bankruptcy..
Basically, debtor has given money to subs and subs issued notes to parent company(debtor) in return. So, it seems that DIPs purchased those intercompany notes in the auction. For eg. ATP Oil & Gas (UK) Limited has assets worth $918MM but intercompany $692MM. This is basically other way to take value out of non-filing subs.
This is what I understand but migth be wrong.
thanks ei I had no idea they could sell non filing subs in a 363 sale learn something new evey day ;)
see Section 2.03 Excluded Assets.
http://www.kccllc.net/documents/1236187/1236187130507000000000006.pdf
the most frustrating thing of this all was not the final price of the bonds or outcomes but the commons prices.
for example when I first bought bonds at 95 the commons where at 10 cents
then I rebought bonds at 5.00 and the commons where at 4 cents
after this the commons ran to 34 cents and the bonds recovered to 70
now the bonds are with no bid and the commons are at 8 cents
you could of maid a fortune in the commons and still had it today.
market is crazy!!!!
I had to get that out of my system :)
true if I would of know this I would of sold for 30 the day after the sale. I was thinking they had assets left the sub.
how did u finally figure out all the subs where included?
better luck next time I guess
The people bidding knew what was in the Sale... the problem for some of us was we didn't. Had we fully understood the Sale was for "all assets" some may have opted out back in January and salvaged some of their investment.
I don't see any changes to the Sale that would be enough to make a material difference for 2nd lien holders.
=================
The ATP BK sale has proven to me that there is a seismic shift underway for the entire O & G indsutry. I knew it was happening years ago when I went to a job in North Dakota and last year when I invested in a home builder and a bank in the Bakken..I just didn't know the emegence of shale activity would have this MUCH impact on off-shore companies.
The shift is away from off-shore E & P to on-shore E & P in a big big way.
Americas' heartland shale reserves and fracking technology changed everything. I'm not saying off-shore assets are "worthless"...but they are worth less and the dismal ATP bids reflected that.
Off-shore production costs are higher...the enviromental risks are higher...and I fully expect more off-shore O & G companies to go BK.
I don't like losing but I want to understand the REAL reasons it happened so I don't step on this rake again.
sure way to keep the bidding low
like selling a mustang cobra but listing it for sale as a plain v6 model
I had sent out an objection late on the bp assets being included and I will add on this
lol only cost me a stamp
I think alot of people were stunned to see what all went with the Sale.
I didn't expect them to list every wrench and desk but I would have thought the list would have detailed major components.
They were selling $600MM dollars worth of assets but most of those assets were described in very nebulous terms.
It would be like selling a house and not giving details as to number of bedrooms or bathrooms or lot size.
For Sale - Some dirt with some wood on it.
chevy56 what if someone wants a valuation hearings?
I know no one wanted to pay more then the dip people bided.
but a 363 sale is not suppose to benefit only 1 party.
this begs for a conversion to chapter 7 truste
they could of scraped the octabuy for millions instead of giving it away for **free** to the dip lenders :)
it almost seems like they added stuff to the auction that where not included in the sale notice that people got in the mail. foul to me it seems I wonder if bp lawsuit was in the sale notice or they added it also
check this old post
http://boards.fool.com/deepwater-asset-sales-30437501.aspx?sort=postdate
Received the flyer for the sale of all of ATP's deepwater GoM assets this morning. The sale does not include the Titan nor any North Sea assets but it does include all of their GoM fields and their half interest in the Innovator located at Gomez. The Titan is not included because it is subject to an essential lein by Beal Bank so any deal for the Titan has to be negotiated with them. It is a separate entity from ATP and since ATP is in default I suspect Beal Bank essentially owns it.
That went in the sale too.
I had thought at first it didn't because it was never mentioned in any document anywhere by name and I would have thought something that "major" would have been. Since it wasn't specifically mentioned by name I reasoned that it must be an asset of one of the non-filing subsidiaries...which would be untouchable to Creditors (outside of a 363 sale).
This is what threw me off back in January:
BANKRUPT US independent ATP Oil & Gas and Chinese shipyard Cosco are locked in talks over the potential sale of the nearly completed Octabuoy floating production semi-submersible hull
By 17 January 2013 06:38 GMT
http://www.upstreamonline.com/hardcopy/news/article1314348.ece
I am surprised they didn't try and take the procedes from the Octabuoy if they find a buyer for it down the road.
or did they.
Unfortunately it would be near impossible to do. It would take a very knowledgable O &G person to figure out what Gomez is actually worth shut-in.
You have to think of it this way - If the really "really good stuff" ATP had only went for fifteen cents on the dollar, what would the junk go for??...yikes....we may have to pay somebody to take it off the estates hands ":-0
Gomez was shut-in basically because the royalty & npi holders wouldn't re-negotiate their terms.
I'm thinking that if Gomez could of been made profittable the dip people wouldn' t have excluded it in the sale.
There will be several sticking points in the sale that will have to be addressed...Gomez, the enviromental issues and the BP wells are just 3 of them.
We'll know more after the sale hearing what we're looking at
Does anyone feel like helping me figure out what assets are left after the sale. Not sure what was sold or not sold
Octabuoy shelf assets, gomez etc
Name of Entity Subs
ATP Holdco,
ATP IP-GP,
ATP IP-LP,
ATP Infrastructure Partners, LP
ATP Titan Holdco,
ATP Titan,
ATP Oil & Gas (UK) Limited
ATP Oil & Gas (Netherlands)
ATP East Med, B.V. 100% 9
ATP East Med Number 1, B.V.2
ATP East Med Number 2, B.V.
Name of Entity
Estate
Interest
Net Book Value
11/30/2012
ATP Holdco, LLC 100% $ 88,408,774
ATP IP-GP, LLC 100% $ 3,064,699
ATP IP-LP, LLC 100% $ 85,350,953
ATP Infrastructure Partners, LP 51% $ 88,835,630
ATP Titan Holdco, LLC 100% $ 771,774,399
ATP Titan, LLC 100% $ 773,379,503
ATP Oil & Gas (UK) Limited 100% $ (92,466,279)
ATP Oil & Gas (Netherlands) B.V. 100% $ 3,947,314
ATP East Med, B.V. 100% $ 22,956
ATP East Med Number 1, B.V. 100% $ -
ATP East Med Number 2, B.V. 100% $ (2,120,091)
ATP East Med Number 3, B.V. 100% $ 23,270
ATP Energy, Inc. 100% $ 1,469,489
ATP Exploration, Inc. 100% $ -
Source: Debtor prepared
Valuation Estimates for Non-Debtor Entities
Exhibit A
DIP Lenders provided cash to pay other claims.
Expect the cash to pay mostly post-petition claims, pre-petition priority and administrative claims.
I would not expect any meaningful recovery for 2nd Lien Bondholders or anyone else.
Stock issuance would require some form of capital raise.
Expect a POL. Why? There has to a mechanism to fund Gomez liabilities.
BRK bought the ResCap Whole Loan Portfolio via a Section 363 sale.
I think what the Judge is looking for is a "POL" Plan of Liquidation as opposed to a "POR" Plan of Reorganization because there isn't anything left to "reorganize". Therefore any dreams of stocks being issued are just that - dreams.
The sale transaction was, in effect, a sub rosa plan that effectively bypassed the Bankruptcy Code’s important disclosure and voting requirements.
The Sale, if approved, leaves very little to liquidate. I don't know what it would cost to reverse the shut-in wells at Gomez but I'm guessing it's may be alot more than anyone is willing to put up.
The sale hasn't been blessed yet so we don't know what will remain if anything.
I expect a POL.
chevy do you have any ideas what a por might look like
the judge hinted he would like a plan to go with the asset sale at the same time
maybe they could issue stock to the 2nd liens or something lol
also if we could get gomez back online and profitable that could bring some money in
any thoughts? thanks
The ATP BK fooled alot of people..some were very sophisticated investors...so don't feel alone.
All BK's have their "gotcha" moments but anything involving Oil & Gas is extremely hard to value. The bulk of the assets are hidden deep underground (or under-sea) and can only be 'guesstimated'...and when you combine that with the ever-changing price of oil it can get dicey.
I also think the enormous discoveries and emergence of domestic crude from shale in places like the Bakken, Marcellus and Eagle Ford have played a huge role in the future value of all off-shore operations. Why buy an oil platform way out to sea subject to hurricane work stoppages or Gov't drilling restrictions that you have to haul men and equipment to by boat...when you can have a oil rig on land you can get to with a pick-up truck and the crew goes home at night?? The difference in costs to set-up and operate are huge ..but the price of the oil each rig fetches is about the same.
ATP had alot of problems from terrible management to just plain old bad luck but I think this auction should and will send a sobering signal to alot of off-shore companies that their sea iron operations may not be worth what they used to be :~O
Mr. Market says that the ATP 2nd Lien Bonds are WORTHLESS. Looking back on this Ponzi Scheme of an Oil Company - the outcome is not at all surprising. Shame on me !!!
Approval or denial of the sale wasn't set-up on a "vote" type system. The Court and the Debtor have the ultimate determining influence.
This was from the Order approving bid procedures etc as an example from Doc 1272.
15. Subject to the final determination of this Court, the Debtor (in consultation with counsel to the DIP Lenders, the DIP Agent, the Creditors’ Committee, the Equity Committee, the Prepetition Second Lien Trustee and the Ad Hoc Committee of Second Lien Notes) is authorized to determine, in its business judgment and pursuant to the Bidding Procedures, the highest or otherwise best Bid(s) and the Successful Bidder(s) or Backup Successful Bidder(s).
You'll find this language scattered throughout all the misc sale related docs. I know there was a specific doc that expanded the list of who would be included back in December because some of the other interested parties, beside the Debtor and the DIP lender, felt they needed a voice.
I am just hoping this would give the 2nd liens a bargaining chip to get a small bone at the least. If they threaten to deny the sale.
would you have the page number that this was on in the bid procedures? I was trying to find it but no luck.
Bidding Procedures, Exhibit 1 to Docket No. 1419.
http://www.kccllc.net/documents/1236187/1236187130214000000000064.pdf#page=17
A Section 363 sale is designed to lead to a quick sale.
The buyer ends up purchasing assets free and clear of any liens and encumbrances. The end result for the estate is a pile of cash to distribute to the stakeholders based on absolute priority subject to senior class "give ups".
In theory yes...but in the end money talks and bs walks. If someone wanted a different outcome then they had the option to outbid the DIP.
I'm having a tough time accepting that the entire company is only worth $600MM tops...I find that incredible...but evidently it is or we would have seen bids over $600MM.
56Chevy Member Profile 56Chevy Member Level Friday, May 10, 2013 11:54:04 AM
Re: romang post# 422 Post # of 441
The DIP, Debtor, 2nd Lien and the Ad Hoc are on the Yeah or Nay committee for the sale. Its in the Bid Procudures.
couldn't they stop the sale? if 2 voted no
I just keep thinking that u cant have a 363 sale if it is not in the best interest of all credtiors. im sure they will find a way around it :(
all atp has to do is refinance its debt and emerge a new company leaner
Thanks for both of your replies 56chevy and Enterprising Investor
I highly value them good luck to all
They could and they might be successful. I'm not against those ideas..but what I see is ATP is out of time.
The Judge is going to take into consideration that the debtor hasn't had exclusivity for 4 months now and yet no one came forth with a POR. Then he'll consider that there was an auction for the assets and no one even offered enough to cover the DIP loan. They didn't even announce a back-up bidder which tells me the next highest bidder wasn't even in the same area code as the DIP bid.
If there was genuine interest in reorganizing ATP he might consider giving more time...but the interest level has been DOA.
BP also has an objection filed in this case (doc # 1842) over some wells ATP bought from BP a few years ago that need to be decommissioned. The laws state that if ATP doesn't do it then the person who owned it before has to. The estimated cost is approx $250MM. I think the DIP lender wanted that BP claim as a bargaining chip to try and use in a trade for decommissioning those wells. I seriously doubt that claim would fetch any more than that...in fact if they could trade that claim for $250MM they'd be doing real well.
I'm all for alternatives..I just don't see any viable ones a Judge would accept. I could be wrong.
I think the Judge sees a company on life support with a high professional fee burn rate and the only thing to do is pull the plug and let it die.
It sucks ...but that's where this is at imo.
A $3B claim does not equal a $3B payment.
These things get settled.
Citigroup sued Wells Fargo for $60B for interfering it its takeover of Wachovia in 2008. Case settled for $100 million.
BP will never be able to pay the full amount. BP is already responsible for close to $40 billion in fines, cleanup costs, and settlements as a result of the oil spill in 2010, with an additional $16 billion due to the Clean Water Act. Personally, I am unsure why the company has not filed for reorganization much like Texaco did in the 1980's (Texaco, Inc. v. Pennzoil, Co.).
3 billion bp claim puts them at 100% paid in full
:) hehe
why not take a chance and file a chapter 7 motion at least they have a chance to get some money. as it stands now they see 0%
Followers
|
6
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
588
|
Created
|
09/28/12
|
Type
|
Free
|
Moderators |
For current price click on FINRA Link below
http://cxa.gtm.idmanagedsolutions.com/finra/BondCenter/BondDetail.aspx?ID=MDAyMDhKQUU4
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |