Hopefully this will pave way for negotiations with how debt will be restructured. Maybe this will give noteholders more confidence for the company as a going concern and therefore negotiate terms with equity to be included in a POR somehow.

Many of us are averaged in the .2's and .3's. Most of GTATs Ch.11 has seen GTATQ stock price around .2-.3. And even more are averaged in dollar land from pre-bk holdings. Majority are in GTAT for a positive POR recovery (Just and Fair recovery), not a flip from .06 to .22

I believe there was a mention to this contract back in a July 8-k as part of the DIP process.

#8 of the "Further Diligence for DIP Process - June 2015":

Who knows if this relates to cosmos. but yeah.

Here is another interesting tidbit from that 8-k





Seems that the 23 delivered in August did not go through or a delay happened. As of the 27th still only 2 furnaces had been sold according to the Creditors and GTAT counsel. (TBH I personally will take this as a grain of salt...)

But of course, since July 7th, Shareholders have gotten absolutely zero update from the company, besides its lawyers saying only two have been sold, when the 23 selling in August could have went through after the 27th.

Can't forget that the DIP lenders still lent out 100 mil in cash and seem to be buddy buddy with GTAT while knocking down any hope for equity..

LOL

I was thinking the exact same thing. my god.

Even the Ipad announcement was not "groundbreaking" per se, just a new upgrade. Apple pencil looks cool, but seems more like an upgraded stylus which has been around for 10+ years.

Yessir on the sapphire lens.

No sapphire in the new Iphones! Phew

It seems that their hopes for 2015Q3 Sapphire in their products has been either cancelled or delayed for another date.

Hold up. The remaining 350 mil is an unsecured claim though, and the 61 is a super priority claim. I THINK..need to do more research.

Was the 411 mil actually listed as a liability on the balance sheet before this settlement?

Holy. that was quick. Should be interesting to see how this plays out. thanks for the post!

The fact that shareholders feel compelled to participate in the BK process since we fear creditors are trying their hardest to keep us out. Shareholders are uniting. If that's not awesome relative to the bad news shareholders have seen so far then i don't know what is awesome

4 more statements of support for the appointment of an official equity committee. Awesome To see!

No it's just ordinary business practice to sign nda's and what not for information sharing with third parties

Solid point. Just wanted to mention ch.7 as a possibility if all else fails. Regardless of this equity, I think ANR will have to transition its business over time to something more energy friendly. Coal won't last forever, and in the short term it is belly up atm. Lotsa companies going ch.11. Peabody and arch are next. IMO the earlier these companies restructure the better for their long term viability

Could have to do with the fact that many buyers don't trust that GTAT will emerge as an on going concern. This factor is something GTAT counsel say has been a factor in ASF sales so maybe it's a factor for Merlin.

Possibly a dumb idea for now. BUT IMO coal as an industry will rebound in the short term, but will not sustain in the long term due to demand for cleaner energy. I'm not suggesting it now, but IMO a chapter 7 liquidation could bring back some value for shareholders if coal does NOT rebound in the short term. Balance sheet in the August quarterly report shows 2.5 billion or so in stock holders equity.

ANR has ~220 mil shares outstanding or so. That equates to about 11 dollars per share. NOW obviously some assets won't fetch for that much, especially if the coal industry continues to go down. However any value brought back to shareholders in a chapter 7 liquidation would beat a share price of zero if shares are cancelled in ch.11 reorganization (kinda likely if coal does not rebound in the short term)

I doubt we would lose ALL of our 2.5 billion shareholder equity in a chapter 7 liquidation. Even just a measly 100 mil equity ( compared to the 2.5 billion Shareholder equity reported a month ago) at the end of the day would bring ANR common to 50 cents a share at the end of the proceeding. That would be a huge win for ANR commons, and of course creditors would be made whole with the sale of substantially all of ANR's assets.

ANR is holding a shareholders meeting in 2016, maybe a ch.7 is something shareholders could propose.

Just some food for thought, any retorts?

Awesome post TJ, glad that low blow intimidation didn't get to you. Keep on trucking!

Some bk plays are just plain dumb ;) preiminarily, not with ANR. ANR of course has potential, while Walter energies already sold away its shareholders in a prepackaged POR.

More research will be done. Glty as well :)

The chapter 11 won't be dismissed, Bondholders however could accept reinstatement of their bonds and or new bonds, instead of debt to equity swaps in a POR. That's the goal IMO. Hopefully anr can restructure properly and with minimal dilution after discharging some debt, majority of debt (especially the bonds due in years from now) can continue as usual.

That's why I argue that the bottom line in every scenario is a coal industry reversal. anr has a massive footing in the coal industry. If coal prices go up then all debt can be satisfied over the next 5 years (duration of the bonds due)

Because remember, the BK filing did default "substantially all" of ANR's bond debt. The ones due in 2021? Nope they are due now due to the bk filing. But I stress again, these can always be negotiated.

It is common for debt holders to receive Equity and/or new bonds in a newly reorganize company via POR.

Once this case develops we will know more, I'll be watching + adding some perspective from time to time.

It's risky right now since the bankruptcy just started. There will be a right time to go in IMO if the cards stack up right. If the Bondholders are happy with the prospects of coal, then they could negotiate better terms for equity in a POR. But as of now ANR just has to get through the process of BK. they just had major first day motions passed

Initial thoughts about ANR. Solid company, huge bond debt though. If the coal industry has a reversal in the next 6 months - 1 year, then noteholders could be more willing to negotiate with equity in a POR.

That or ANR will have to sell portions of its business to pay off debts and or strengthen the balance sheet. More will be known over time, I'll be following closely before buying in. Coal reversal is crucial

Anyone wanna chime in on why ANR needs a huge dip loan when it has 500 mil in cash? My initial thoughts are that ANR expects the coal industry to stay at its current levels for the foreseeable future (aka a large chunk of its bankruptcy) and wants a large cash position to sustain during the downturn. More info can be seen in the motion.

Looks like the court docket for ANR has a few shareholders not understanding what a "substantial equity holder is" ?

In other news though ANR just recently saw court approval for some big preliminary bankruptcy motions.

Actually I got it, here's my conclusion. So we will lose NOL's outside of a POR if an "ownership change" occurrs (50% stock change from one shareholder)

WITH a POR, we will lose NOT NOLs in this scenario below..

Under Section 382(l)(5) of the Tax Code, a corporation is not subject to the annual limitation ordinarily imposed by section 382 with respect to an ownership change resulting from consummation of a plan of reorganization, so long as the debtor’s pre- change shareholders (i.e., persons or entities who owned the debtor’s stock immediately before the relevant ownership change) and/or Qualified Creditors (as defined below) emerge from the reorganization owning at least 50% of the total value and voting power of the debtor’s stock immediately after the ownership change (the “382(l)(5) Safe Harbor”

Qualified claims are defined below,

Under section 382(1)(5)(E) of the Tax Code and the United States Department of Treasury Regulations (the “Treasury Regulations”) promulgated thereunder, a creditor whose claim is exchanged for stock under a plan of reorganization is a “Qualified Creditor” for Section 382 purposes if such claim constitutes “qualified indebtedness.”5 Generally, a claim constitutes qualified indebtedness if it either (i) has been owned by such creditor for 18 or more months prior to the date of filing of the bankruptcy petition or (ii) arose in the ordinary course of the debtor’s business and was at all times beneficially owned by such creditor. Creditors also may be classified as “qualified,” despite not satisfying the continuous ownership requirements under either (i) or (ii) of the preceding sentence, if such creditors meet the criteria set forth in the de minimis rule described below.

SO It seems that only "trade payables" and the 2012 notes are "qualfiied claims" IF these parties have not sold their claim. That's about 350-400 mil in debt. If these debt holders get 50%+ of the company in a POR then NOL's will be fine. Same for equity, if we do not get diluted 50%+1 AND qualified creditors don't get 50% of the company, NOL's will be fine.

So you were right Xena, my apologies. However it still is not clear if qualified creditors could Save NOL's. it comes CLOSE. We will know for sure when a POR is filed.

Yeah, he was using the only info we have though. Same for the guy who said our equity was positive 310, (parentheses = negative). I believe the Ad Hocs value as opposed to negative 310 million equity. I think you would agree also since you are still long.

Go read Cal Dives (ch.11 on the same site as GTATs ch.11) and GTATs motion placing trading procedures on claims and equity transfers, I might be reading them wrong, I take back my conclusion for now. I think there are certain scenarios where NOL's are harmed in a ch.11 plan if ownership changes, but the motions by the 2 companies set up procedures to mitigate that since an "ownership change is likely" (quote from cal dives motion)

I'll read both today when I have time and get back to you in PM, for now I'm not sure

I've said it many times before, NOL's are not harmed in the context of a POR...

.

First of all, that fee statement had only to do with chapter 11 professional fees. Ropes and gray are special counsel to GTAT for the chapter 11 case. The only litigation inside the chapter 11 case include txt v GTAT, any any appeals (KEIP/KERP Appeal which concluded, and the most recent DIP appeal)

Ordinary course professionals are the ones dealing with outside litigation and in this case, the arc settlement. Solloway and Hollis represented GTAT for that. The ordinary course professional fees are not listed on MOR's.

R+G are the highest paid there due to finalizing dip+inter company settlement negotiations I would assume, not litigation. It's not shocking to see PH and R+G as the highest paid attorneys, check out R+G's application. They are heavily assisting PH in this bankruptcy.

haha (310,000,000) = negative 310 mil equity

Luckily most assets are extremely undervalued. Don't look at the mor balance sheet for complete accurate info.

I assure you we will be emerged from ch.11 early 2016

From that whole post, this is what the focus is? He answered to the best of his knowledge.

This is exactly why the ad hoc members are hesitant to post in the first place,

Solid post once again southbird.

Yeah that makes sense, I totally agree actually. IMO price will have to exceed 100mil MKT cap. AKA somewhere close to 90 cents - 1 dollar. Then we will have more fire on to play with.

In the meantime though, we have an Ad Hoc equity committee fighting for us and probably will release to Shareholders GTATs "new" business plan. They are getting more access to INFO as per the courts order on the 27th.

We also have the official committee of equity holders motion being heard in 2 weeks.

I think the main thing is an influx of buyers were reminded that GTAT still exists with the mass PR starting monday. So much of the business media headlined the "GTAT 40% reduction which will lead to 20 mil saving a year" along with the fact that GTAT will share its "new" business plan with the creditors and Ad Hoc shareholder committee.

GTAT has not had mainstream news since they announced a new sale was executed back in February, and even then only the company really PR'd it. Stock rose from 29 cents to 33 cents that PR. If we are counting REAL media release, we have to go all the way back to the Apple ordeal. The settlement brought us from 22 cents or so to 58 cents in one day, then it crashed back to the 40s.

This was the first major release in terms of media coverage, (btw the news itself is not equity saving news) at a time when GTATs stock price was 6 cents.

Basically the risk reward chance went up to the new people who have not been paying attention to GTAT the past few months. Thats the most plausible theory.

Maybe something leaked and a huge whale is buying now. But we can never draw from that conclusion, my theory is derived from what is given.

Hilarious thing is any "news" that came out THIS week about GTAT was actually known mmmmm maybe 5 minutes after the hearing LAST week (thursday was court date) when the price was 6 cents. Price didnt move for 2 trading days last week after the news. (Maybe 1-2 hours of trading left on Thursday after the hearing, and a full day Friday. Aug 27-28)

Huge spike on Monday (and continuing today) after many sites posted the "news"

There was no specific mention by GTAT when they will emerge from Ch.11, but according to court docs its safe to assume early 2016. (POR In october, Solicitation in December, Confirmation January/February)

L3 so much more interesting with actual volume hah, not that the price matters per se in terms of a to be confirmed POR

It just states that they intend to raise the money, through every translation iv'e ran the quotes through. Todays article says they are "starting" it, according to the translations as well.

Lens to continue its plans to raise cash for Sapphire Production

Might have snooped up on something golden. Seems like Lens (300433.SZ ticker. A simple google search of 300433.SZ will give you news of Lens) is continuing with their plans to raise cash for Sapphire.(1)

Here is the direct quote from the site I found posted 4 hours ago. So 6pm Pacific time, or 9 Am China time. (translated to english kinda poorly. Blue Synopsys is the hilariously wrong translation of Lens Technology)

DISCLAIMER:

It says June 2 in the translation, the original date they issued the PR stating that they were going to raise the capital needed, now the PR states they are starting "additional plans, plans to raise about 6 billion yuan. My whole speculation will be off if my prediction is wrong. However I feel that it is genuine because the Article/blog was written today.


BODY:

I'm usually against speculation of miracles for GTAT, but maybe this rumored article that Apple would broker a deal between GTAT and Lens could still be in the mix.(2)

I think I and a few of us had assumed that Lens did not go through with its plan to raise approx 940 mil USD (6 bil Yuan) because the chinese market crashed, and Lens was looking for 5 individual investors to front the money directly into the company for a certain amount of equity in Lens.

So with the crash I had really assumed that Lens had to put off its "new IPO" or whatever because the value of its stock essentially loss almost half of its value in June. Why would "the richest woman in china" (AKA the CEO/President and Majority Equity holder of Lens) give away more of its company for the cash injection during the heart of the crash? Maybe she held out on the offering and now feels its the right time to go ahead with the offering? Well obviously Lens feels this way if this PR is accurate.


CONCLUSION:

With global markets, especially China, possibly stabilizing in the past 2 weeks, (for the time being...) Lens feels it can continue its plans to invest in Sapphire furnaces + equipment to ramp up Sapphire production operations. With that said, this Apple rumor posted in early June (before the crash) could again be in the mix for both the benefit of GTAT and Lens, if Lens can secure its financing through its new equity offering.This could also time well with Apples I7 announcement.

SOURCES:

(1)Lens Announcement:

http://business.sohu.com/20150901/n420207086.shtml

(2)Apple brokering a deal with Lens and GTAT Rumor Article:

http://appledailyreport.com/lens-may-seek-to-acquire-gt-advanced-with-apples-help/

If knowledge that shares are surviving for sure came out we would see a +$1 stock price..

Outcome of equity awards is not determined yet, hopefully its positive in the end, but there is a lot of work to be done from now until then.

I see no reason why this jumped. We knew this stuff last week. Congrats to those who did/could buy around .06-.08

PM me, lemme know how I can help

Id'e be glad to help

Shareholders still hold rights in BK. As for deposing of the B.O.D, there is a stricter test for it and I think it needs court approval. Shareholders have to prove that some, or all B.O.D. members have clearly abused their position.

If GTAT had got the third payment, they would have been even more screwed. They would continue to lose cash to employee wages + boule production and other mesa ramping up fees. Unsecured creditor debt would be closer to 200 mil- 250 rather then the 150 mil it is right now. Let alone now a secured debt of 540+ million owed to Apple rather then the 439 mil due now...

The BK bomb clock started the second they started ramping up Mesa + hiring employees. The earlier they declared bankruptcy, the more value GTAT would have had. Not saying october 6th was to late to declare BK, just saying in retrospect, an earlier filing date would have brought more value back for everyone, hindsight 20/20 though.