Thanks for the reply much appreciated makes sense now

I assumed so.

It's done.

well it hasnt traded today after 19 million shares friday on 227 trades and I do not see it on any daily list but it is Nasdaq so I am guessing it had final distribution and fully belly up.

Remember it is not a stock. It is a payable of some sort on CYH on NYSE - I forget details - they are on here somehwhere - Lawsuite remnants or something - beleived to be nil so CYHHZ worrthless - it was a lotto play that there might be a payout
https://investorshub.advfn.com/FROGGERS-HIDEOUT-26301/
searched CYHHZ on IHUB and found this
CYHHZ is a contingent value right (CVR). This security was issued by Community Health (CYH) when they merged with Health Management Associates (HMA). For each share of HMA, CYH paid $10.5 per share of cash + 0.06842 shares of CYH ad 1 share of CYHHZ. The value of CYHHZ depends on the an out of investigation of HMA medicaid practice by DOJ and HHS. Here is the full proxy of the CYHHZ:

http://www.secinfo.com/d14D5a.x9F9v.b.htm

This security was discovered by one of my msg board-mate. Did I mentioned that we need a good msg board to share ideas?

There are a few sections that is relevant to the discussion of why I am interested in CYHHZ:

“CVR Payment Amount” means $1.00 in cash per CVR; provided, however, that if the aggregate amount of Losses as of the Payment Event Date exceeds $18,000,000 (the “Deductible”), the CVR Payment Amount shall be reduced by an amount equal to the quotient obtained by dividing: (a) the product of (i) all Losses in excess of the Deductible and (ii) 90%; by (b) the number of Outstanding Securities on the Payment Event Date; provided, that the CVR Payment Amount shall not be reduced to an amount below zero. All payments of the CVR Payment Amount shall be made without interest thereon and less any applicable withholding of Taxes. In no event shall the Company be obligated to pay the CVR Payment Amount on more than one occasion.


“Existing Litigation” means any litigation, investigation (whether formal or informal, including subpoenas), or other action or proceeding involving the HHS-OIG, the DOJ, the Commission or any other Governmental Entity, relating to whether HMA or any of its Affiliates violated any Law, and any civil litigation or other action or proceeding, including any shareholder or derivative action or proceeding, arising out of or relating to the foregoing, in eachcase existing on or prior to the date of the Merger Agreement; provided that Existing Litigation shall not include any such litigation, investigation or other action or proceeding involving only individuals or entities other than HMA unless HMA is required to indemnify Losses incurred by such individuals or entities. For the avoidance of doubt, for purposes of this definition, the Company and its Subsidiaries shall not be considered Affiliates of HMA.


“Final Resolution” means (i) receipt of written confirmation from each applicable Governmental Entity that it has closed its investigation into HMA with respect to the Existing Litigation; or (ii) resolution of the Existing Litigation pursuant to a written settlement agreement, consent decree or other final non-appealable judgment by a court of competent jurisdiction.

So the payout of CYHHZ can range from 0 to $1 depending on how much CYH eventually need to spend in settling or pay the fine for HMA transgression. The formular to the payout is

$1 - (settlement cost-18M)*0.9/total number of CYHHZ outstanding

And the timing for the resolution can be 1 to 4-5 years. There are 261.927M shares of diluted HMA shares outstanding in the latest 10Q (November 2013) before the merger. So the reserve for this particular settlement is in the 262M range. And the 0.9 factor there is to give CYH incentive to try it's best to negotiate a good deal. CYH will have to pay 10% of whatever settlement/cost that they negotiated. The 18M is probably what the HMA folk believe the lawyer cost will be and they want to make sure that CYH won't skim on the lawyers.

Currently the share trade between $0.06 to $0.07 per shares. It was trading as low as $0.04xx per shares for a few days a couple weeks ago. The interesting part of this CVR compare to options is that it never expire. If the settlement / trial drag on for 10 years, the CVR will still be in effect. And I don't have to hit home run with this CVR to make it worthwhile. If the CVR pay back 10 cents and my average cost is in the 6-7 cents range, I make a pretty decent profit. And it is not a particular big case. HMA and CYH management already estimate that the cost of this investigation/potential litigation will be between 0 and $262M.

What’s going on with this one ?

Looks dead.

https://www.sec.gov/Archives/edgar/data/1108109/000119312519007350/d634071d8k.htm

It is not on the daily list (YET)
http://otce.finra.org/DailyList

Heavy volume today, 17.5 million already, what’s up? Is today the last day before we get delisted?

No SEC filing at the 30 day mark and no CVR Agreement termination certificate to the trustee per the last 8K on December 7, 2018.
http://secfilings.nasdaq.com/filingFrameset.asp?FilingID=13099041&RcvdDate=12/7/2018&CoName=COMMUNITY%20HEALTH%20SYSTEMS%20INC&FormType=8-K&View=html

Maybe there will be a payout after all.
Very good, especially for those that bought at the current .001s level.

1.67M+ shares average per day plus those few massive volume days when it dropped from .003s to .001s would be 130M CVRs reduction of the 264.544M CVRs, if there is a payout, so CYH is getting to pay less by buying up as much as the market would allow them. (October to December 2018)

If they did the above, then they saved $7.7M if the payout is $.0589 per my previous calculations.

Win/Win for all if this happens.

This thing "should" be de-listed by Monday. That would be the 30 day mark.

Whoa, we are up 50% today on 1.5 million volume!

heer on a lot of others

Yeah, lots of silly stuff going on.

hummmm look at the trades 10 min ago

looks like 2 market buy orders to .006 from .0007 in a few minutes in 2 trades

last at .006 or ,0008 depending on two different feeds i have LOL

ask is now .0008 again but last at .006

I guess 30 days from that posting.

Thank you. Any idea about exact date of delisting?

Possibly a complete ruse since the company can buy back all the CVRs at anytime so of course they want to make it look like there's a zero payout, buyback as much as possible, and the final payout would be dramatically reduced.

Or they just cook the books and there is no payout regardless.

Zero to .195 range
The higher number is if the legal fees are grouped into the total settlement. If separate, then .0589 in my previous post.

"The CVR agreement permits the Company to acquire all or some of the CVRs, whether in open market transactions, private transactions or otherwise. As of September 30, 2018, the Company had acquired no CVRs."
Page 38
October 30, 2018 10-Q
https://www.sec.gov/Archives/edgar/data/1108109/000119312518312254/d617152d10q.htm


Question is....does the $318M reserve factor in the 10% payable by CYH and the $18M deductible.

If that number is in addition to those, then there may be a payout after all.

$318M - $264M for the $1.00 = $54M unaccounted for

That's where any money will be coming from folks.

Since there's still interest in the shares, the ruse might be in play, otherwise this would already be worthless.

All the SEC filings said zero payout from the beginning and yet it traded to .04 a few months ago.

Is zero really likely? That's what you have to be able to live with.
Good Luck to All.

https://www.sec.gov/Archives/edgar/data/1108109/000119312518344944/d663930d8k.htm

Did you write this 3 years ago?

Update: 8/14/2015

CYH announced the 2Q15 earning and they had this to say about CYHHZ.. The company effective put the value of CYH at zero. However, if I look at the accounting of the value of CYH according to the company, the big $ jump out is the "Estimated liability of unresolved contingency at fair value" at $271M. So far the spending to date is Legal 26M + Settlement 19 + 2 estimated liability for probabale contingency or a total of 47M - 18m (deductible) - 2.5 (10% coinsurance)= $26.5M. The value of CYHHZ lie in what the company know about "estimated liability" vs "probable liability"? CYHHZ is set up to pay for the liability for 7 specific lawsuits. And we already has some settlement (a indicated in the 19M in settlement charge) and others that is going forward to settlement ("probable contingency). And the interesting part of the discussion is that there are 2 classes of estimations: "probable liability" vs "estimated liability". In my thinking "probable liability" is payment that is under discussion and company has clear indication of how much it will be (or at least an upperbound of the payment). "Estimated liability" is just a bucket that CYH set up for the remaining of lawsuits. The value of "estimated liability" is chosen so that it does not raise expectation of HMA owners who own this CVR and also not too high to make CYH owner upset as they are on the hook for any amount over the CVR value. To me, it is a number set up to not offending any group.

It is somewhat encouraging that after 1 1/2 years+, the case is still going on. That means (to me anyway), that government does not have a slam dunk case and CYH did not sell out HMA owner and just went for a quick settlement. CYH has settled some of it's cases for 98.5M. So CYH is not avert to a settlement if they choose.

I guess I am going to wait patiently to see how this one is going to resolve. The fact that majority of the money for the CVR is still unspent about a year and a half is a decent sign that the shareholders may get something at the end (figure cross and say "pretty please" 3 times quick 8-))..

CYH 2Q15 earning

As ofJune 30,2015
Legal and other related costs incurred to date $26
Settlements 19
Estimated liability for probable contingencies 2
Estimated liability for unresolved contingencies at fair value 271
Costs incurred plus certain estimated liabilities for CVR-related matters
318

Less:
CHS deductible of $18 million(18)
CHS co-insurance at 10% (30)

Impact of recorded amounts under CVR agreement after giving effect to deductible and co-insurance
$270

CVRs outstanding 265

WATCH******

There must have been some flow of news to explain such a move. But I don't see any. I would appreciate if someone is able to report the reason.And what is the expiring date for CYHHZ? I can't see any. Even Bloomberg is not helping

Thanks a lot Andrew

I see no new information.

is tomorrow a drop dead date of some sort? a lot of trading down 50% assuming its 100% worthless

Thanks for the reply ARuss.

If there is any payout, it should occur within 60 days of "final resolution", or so says the original CVR documentation.

Strong recitend on .007's...founed bottom...let see

server error disregard

server error disregard

Based on the 8K from 10/29/2018
https://www.sec.gov/Archives/edgar/data/1108109/000119312518310632/d640688dex991.htm

As of
September 30,
2018
Legal and other related costs incurred to date

$ 36
Settlements paid

30
Settlements accrued based on final amounts

266
Estimated liability for unresolved contingencies

—






Costs incurred plus certain estimated liabilities for CVR-related matters

332
Allocated to:


CHS deductible of $18 million

(18 )
CHS co-insurance at 10%

(29 )






Recorded amounts that reduce CVR value after giving effect to deductible and co-insurance

$ 285






CVRs outstanding

265


========
So 318M reserve
https://www.nasdaqtrader.com/content/newsalerts/2014/infocircular/CYHHZCircular.pdf
$296M settlements ($266M + $30M paid already)
$36M Legal Fees
-$29.6 (CHS co-insurance 10%)

$296M-$29.6M = $266.4M Total Settlement

FINAL
$318M -$266.4M -$36M Legal Fees
= 15.6M Left Over / 264.544053 CVRs
= .0589

Good Luck to All

Small but at least it's something.
If it's zero then the RESERVE was overlooked and was not factored in because that's what's missing in the 8K!

It's a $318M starting point, not just -$18M and -$29M which makes the difference of $285M appear more than the $265M, thus it seems to be a zero payout.

"There are 264,544,053 CVRs outstanding as of the date hereof.
July 27, 2018
10-Q
https://www.sec.gov/Archives/edgar/data/1108109/000119312518229648/d497838d10q.htm


I'm holding for the .0589
Let the good times rollll.

Please do your own math and due diligence to come to an investment decision.

Looks like we will be waiting awhile if not indefinitely. ;)

Still here. Still waiting for a payout.

is anyone still using this? did i miss something?

CHS has an "official" number of 262 Million.. View their 8-K filling here http://chsnet.gcs-web.com/node/19401/html[url][/url][tag]insert-text-here[/tag]

CHS has an "official" number of 262 Million.. View their 8-K filling here http://chsnet.gcs-web.com/node/19401/html[url][/url][tag]insert-text-here[/tag]

Payout?? If at the end of all of this there is a payout, and there very well could be anyone know how it would be distributed Any thoughts on this johnhancoque?

What are the implications of the two parties that went their separate ways on this lawsuit? Will their possible verdicts simply be added to the global resolution when it comes to calculating the amount deducted from CVR value?

Thanks

I believe DEAD or DYING? A possible 200% spike was anticipated after last news announcement, but that time has come and gone. I came in late on this so I don’t know all the specifics.

Anyone here know the scoop?

Does anyone know if CYHHZ could hit a 10¢ price per share anytime soon? The stock's record high is .7¢ in the past 5 years.

Now there’s that big bid we’ve been waiting on!! I’m telling ya, if buys pour in, buckle up!

I'm not sure if there's 40mil leftover but I hear ya that there is a possibility there is a few mil leftover. Otherwise this would be at zero. They need to finalize this already.

Stayed up late last night researching and running every analysis possible. Everyday you cut it, there is still 10-40 million left over ( big spread I know but I’m figuring best to worst). You have to believe that is going to CVr holders! They know if they used the language they did, it would plummet the price and cost them much leas$$. If you bought .004s yesterday, I believe you make 100-300% return!

When this first started trading years ago, it was issued on the market at .04 per share. Where did that money come from? And won't they have to close it out at .04 per share in order for cvr to break even with no payout? Anyone know how that works?

Great summary, thanks. Explains it perfectly, because if there is to be zero payout why is this trading still at such high volumes and different prices? Because there still may be a CVR payout, although they do not “anticipate” it, as the press release says.

If you read the press release from yesterday, it says CHS anticipates that no distribution will be owed to existing shareholders... key word.. Anticipate!! This is still a play, if you bought in the last few days, there sure as bell isn’t any benefit in selling now..I think they know how to use language to create mass fear and lower what they would have paid out before.. pretty smart actually. Wrong, crooked, and unethical, but smart

Buys after hours could make this move 200%!!! Fair value with no payout is well over 2.5-3 cents! Company has assets and cash

I like it!

F it I'm back in for 500K shares, I just wiped out the .0039's. Made $50K so far whats another $2K to reinvest!