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.
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.
They already own BioAmber Inc... they bought everything except for the St. Paul office, which I can’t blame them. They have everything they need at the plant.
Also, it’s not a matter of “wanting” anything. In order to have access to the NOLS they have no choice but to register under the current shell with a similar business (producing product through the Sarnia facility).
Sounds like you need to familiarize yourself with how this all works.
Yes they absolutely have to maintain the same business operation for at least 2 years. That won’t be a problem here.
Exactly. Visolis is going to be LCY/KKR lab rats with a plant that has its own R and D facility.
I agree with this point of view. Visolis is actually the perfect company to r/m into this. They’ve already registered themselves in Quebec. They also have to be merged into the company to utilize the NOLS. An IPO isn’t necessary when you ultimately have the backing of two of the largest chemical companies in the world. LCY/KKR.
The higher the uplist price the lower the cash flow requirement (weird I know)
https://www.colonialstock.com/nasdaq-listings.htm.
Here’s a guide for those unfamiliar.
Minimum uplist price is $2 if other terms are met (cash flow etc) It’s also a requirement to have a minimum of 450 shareholders on record to uplist.
Dugar deepak is the president of visolis, Société par actions” means a joint stock company
$BIOAQ For those of you who still think shares will be wiped out. The is from the business registry of Revenue Québec pic.twitter.com/MlCMtORIGw
— Keep It Real (@Keepitrealtj) September 18, 2018
Have a look at this one shall we? Visolis isn’t wasting any time.
$BIOAQ For those of you who still think shares will be wiped out. The is from the business registry of Revenue Québec pic.twitter.com/MlCMtORIGw
— Keep It Real (@Keepitrealtj) September 18, 2018
In chapter 15 the lead entity controls the entire process. Here’s the pacer link for those that have conveniently forgot this is chapter 15.
Canada controls the proceedings, not the US.
https://www.pacermonitor.com/public/case/24653251/BioAmber_Inc_and_BioAmber_Inc
I replaced my old dd post with this
For the millionth time it’s a CCAA not a BK. Canada controls this transaction, not the US.
I didn’t notice this, I’d care to wager it’s because he still owns his $260k worth of shares though.
Sounds right to me. I’d wager the market shares the same sentiment since were not in “trips” as some said we would be from this weekend.
Excellent post Sorhay, thank you.
“No judge can circumvent the law”
So no judge will break the law by allowing the cancellation of the commons when equity exists for them through BioAmber Inc.
Thanks for that breakdown, we appreciate it!
You do realize this is CCAA and not bankruptcy right? Lol.
Yes sir. Secured creditors are only able to collect on BioAmber Sarnia’s assets as that’s the company the lending agreement was executed for, NOT bioamber INC.
This was part of the bid proposals for the two highest bidders but the creditors didn’t want to wait to collect further payment for whatever reason. It probably has something to do with their books and being able to claim the write offs for the current tax year.
Or in other words the creditors had a chance to collect more money through payments than being paid a lump sum up front. Comerica chose the lump sum though.
It’s not a question of if, it’s clearly written in the reports, especially the redacted bid document. “Newco” is exactly that, forming a new company under the existing ticker.
Visolis is a private “company” that couldn’t afford the electric bill on this plant let alone buy the company. LCY is fronting the entire bill, with the backing of their new owner KKR I’m sure.
This is going to be a r/m into bioamber to not only retain all the NOLS since the company is in the same sector, but to eventually go public just like bioamber did.
Exactly, because an impairment charge was assigned to the plant due to not running at full capacity. Once they address the uptime of the plant that impairment charge can be reversed.
Creditors have no entitlements to anything other than the asset that the loan was utilized for. The loan was used to finish the building of the plant.
This would be a different story had the loan been taken out under BioAmber Inc but thankfully it wasn’t.
Whatever entity is responsible for the losses holds the NOLS.
Thank you for this, further confirmation for all that we’re golden here
Well lookie there.. looks like a difference of 37m to me.. which equates to .28 per share.
Makes sense why eno averaged down to .26 then now doesn’t it?
I never bothered to look into the details of the comerica loan until today. Comerica deserves everything they’re (not) getting for issuing such a predatory loan and the old management lost their damn mind even accepting such terms.
8% interest on 20m over 6.5 years. First payment was due 3 months after the plant was commissioned. That’s 330k a month
Was the old ceo too proud to hold an equity offering or did he really just suck at his job that badly?
Not sure but could begin as soon as the ink is dried on this deal. Without knowing the details of this JV it’s hard to guess what their game plan might be though
Regardless, the clean reporting shell itself is worth at a minimum 20% of it’s NOLs.
Here’s some further insight into Eno. He was brought in here either make this company work or get a fair offer if it didn’t.
From the article linked below;
He then entered management consulting where he specialized in addressing critical strategic and operational issues facing company leadership in the chemical and energy industries.
https://ilbioeconomista.com/2017/09/15/richard-p-eno-is-the-new-chief-executive-officer-of-bioamber/
To simplify this all visolis would have to do is roll their company into the shell and go public. Because it’s the same type of company the NOLs stay intact.
Ticker/name change and they’re ahead of the curve with the NOLS kept intact.
Given Enos track record this guy knows what he’s doing. If he shares the same concerns as others he could of kept averaging down or sold out at a huge loss but he hasn’t.
The rich don’t stay rich by giving away money, would you throw away 260k?
Of course, I can’t touch on everything or I’d write a short novel. Some people need to think for themselves just a little bit lol
I need to dig on pwcs past CCAA reports to find a correlation. Kinda hard though because every case is unique. I don’t really understand why we would have to wait once the judge approves this deal on Tuesday. At that point it’s case closed since the us courts follow suit with Canada’s decision.
As far as the lawyer thing there was a stay placed on this lawsuit because of them filing for CCAA. After that I’m unsure. I’m no lawyer so I couldn’t tell you what/If the ramifications would be in this situation.
Gotta convert from TA to USD. Multiply by .032 for the usd conversion.
While I won’t disagree with you if you reference some other CCAAs everything was approved the same day. I obviously can’t say that’s the case here but it’s 50/50. Gotta love rolling the dice lol.
If you look up LCY’s cash flow it’s around 5b TA$, the conversion is .032. So around 160m usd.
With the consideration in mind that KKR purchased LCY with the intent of just expanding their portfolio and keeping existing LCY management it’s clear to see they aren’t going to let their new $1.56b usd investment run into financial hardship. I’m sure there’s some help from KKR in acquiring bioamber.
I’m still thinking we see a minimum of 100m, and that’s partially because of inventory, receivables, etc listed under BIoamber that the creditors can’t go after since it’s a completely separate entity.
Guess we’ll find out Tuesday.
Appreciate everyone’s work on this. It’s totally plausible that this is in fact the case. While we can’t be sure on their formatting it’s usually a requirement to submit this sort of documentation with a standard in place. PWC does follow the $us or $ca format. That said we won’t know until Tuesday at the earliest.
Digging around on PWC’s previous cases it appears that once the judge approves we should know what the buyout amount actually is.
Good to know, thanks for clarifying.
Id imagine after the 18th this transfers into receivership. Could be the case number to follow for that.
Pretax bid amount, bid wouldn’t show any taxes.
What size font did this turn out to be?