Final distribution posted

"On May 4, 2012, the Bankruptcy Court entered an order disallowing and expunging the last two remaining disputed claims that were subject to the Disputed Claims Reserve, and that
order is now a final order no longer subject to appeal. As a result, pursuant to the Plan, the Company is authorized to release the remaining distributable value from the Disputed Claims
Reserve in the aggregate amount of $1,535,634.00, which is being distributed to holders of Class 13a Interests as the “Final Distribution” under the Plan. The Final Distribution will be made on or about May 30, 2012 in the form of Cash and New Common Stock, as defined in the Plan. The aggregate value of the New Common Stock to be included in the Final Distribution is
approximately $1,456,166.00 (valuing the New Common Stock at the Plan valuation per share of $13.45), and the aggregate value of Cash is approximately $79,468.00. The Final Distribution
will result in approximately .0004453 shares of New Common Stock and $.0003268 in Cash being distributed for every one share of common stock previously held in the Company before its chapter 11 filing. There will be no more distributions to holders of Class 13a Interests under the Plan."

http://www.kccllc.net/documents/0911233/0911233120530000000000001.pdf

All claims have now been settled. If we get another distribution it will be on 5-7-12.

New shareholder letter. Distribution should be within ten days

"The Third Supplemental Distribution will result in approximately .0061892 shares of New Common Stock and $.0135773 in Cash being distributed for every one share of common stock previously held in the Company before its chapter 11 filing."

http://www.kccllc.net/documents/0911233/0911233120309000000000002.pdf

looks like they asked the judge to delay till March 9th. They plan to add the 8.9 million from the NPC settlement to this distribution.


"Specifically, the Order will extend the outside date for the Reorganized Debtors to begin making the Supplemental Distribution from March 2, 2012 to March 9, 2012."

http://www.kccllc.net/documents/0911233/0911233120301000000000002.pdf

NPC settlement proposed gives CEMJQ shareholders another 8.9 million


"Upon NPC’s receipt of the Distribution, the Reorganized Debtors shall be authorized, and are directed, to release from the DCR $8,905,931 in distributable value (representing the remaining balance of the total $12,855,931 in value in the DCR on account of
the NPC Claim after payment of the Allowed Claim of $3,950,000), which shall be distributed to Class 13a Interest Holders (the “NPC Surplus Distribution”). The Reorganized Debtors shall
make the NPC Surplus Distribution as soon as practicable after NPC’s receipt of the Distribution, but in no event more than fourteen (14) days after NPC’s receipt of the Distribution."

The stock is overvalued when you can buy a 100 dollars of their bonds for a dollar. If you want to make a bet buy the bond

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=MzcwMjkwQUY1

New distribution to CEMJQ shareholders of 13.653 million.
That will leave 15.8 million in the disputed reserve fund. Only 44 claims remain of which only eight are likely to be pais from the reserve.

http://www.kccllc.net/documents/0911233/0911233120105000000000002.pdf

They have screwed with the old shareholders from day one. The first distribution I got they shorted me one share on each the two accounts holding CEMJQ. They were supposed to round up each fraction share above a half share. They were both above 0.7 shares and they rounded down. I had to contact the Debtors’ claims agent at (866) 967-0261.

Has anyone else noticed how they seem to keep drawing out the claims process so that they avoid paying out the leftover funds from the creditors reserve. I have not been following it closely but I believe that the final payout will be more than 14 million. Every claim they have settled is for less than listed.

Link to bankruptcy documents.

http://www.kccllc.net/pmi

Has anyone looked at PPMIQ? They have a negative worth of ~500 million.


http://phx.corporate-ir.net/phoenix.zhtml?c=63356&p=irol-newsArticle&ID=1633433&highlight=

We will have to wait a few more weeks to get the distribution.

"At the hearing on July 14, 2011, the Court granted the relief requested in the Oildale Reserve Distribution Motion. The Reorganized Debtors anticipate making a supplemental distribution to holders of Interests in Class 13a in the coming weeks with respect to the amounts authorized for distribution in the Oildale Reserve Distribution Motion and one-half of any excess amounts that may exist in segregated reserves following the consensual reduction of the segregated reserve for the Oildale Claim and settlement of the claims subject to such reserves (all in accordance with the Reserve Order)."

REORGANIZED DEBTORS’ THIRD POST-CONFIRMATION STATUS
REPORT FOR THE PERIOD FROM APRIL 1, 2011 THROUGH JUNE 30, 2011

Non-Objecting Creditors’ Reserve was approximately $44 million.
Total Segregated Reserves $7,435,066

http://www.kccllc.net/documents/0911233/0911233110715000000000002.pdf

There are at least two bidders. Dish and a group of bondholders. They have hinted at additional bidders but they have not identified them. I like the fact that Echo Star who is backing dish owns 30 million shares.

"Dish had been competing with a group of distressed-debt investors holding TerreStar's bonds to be the so-called "stalking-horse bidder" in the auction that would set an opening bid others must top. These bondholders, including Solus Alternative Asset Management, Stark Investments and MSD Capital, had recently offered $1.35 billion for TerreStar, according to people familiar with the matter."

Read more: http://online.wsj.com/article/SB10001424052702304186404576387550291090690.html#ixzz1Prj9brWF

Shares short 83,400, prior 108,700

http://shortsqueeze.com/?symbol=tstrq&submit=Short+Quote%99

April 2011 monthly report shows a positive shareholder equity of 247 million for Terrestar corporation.

Monthly report

http://terrestarcorprestructuring.com/pdflib/97_10612.pdf

Terrestar corp. restructuring site.

http://www.terrestarcorprestructuring.com/

Terrestar network restructuring site.

http://www.terrestarinfo.com/

Monthly operating report for April 2011 shows total liabilities only 1.514 billion. Any significant action at all in the auction and the stock is in the money.

http://terrestarinfo.com/pdflib/599_15446.pdf

Any thoughts on TSTRQ? Dish has made an opening bid of 1.4 billion in the stalking horse auction. Which is 90 million more than secured debt. A poster on yahoo said there is approximately 200 million in unsecured debt.

"Dish Network chairman Charlie Ergen has renewed efforts to acquire TerreStar Networks, agreeing to submit a "stalking horse" bid of $1.375 billion for the bankrupt hybrid- satellite-technology firm.

TerreStar's assets are slated to be auctioned June 30, with Dish's offer to serve as the opening bid, according to bankruptcy-court filings.

Analysts say Douglas County-based Dish, the nation's No. 2 satellite-TV company, is interested in TerreStar's satellite spectrum. The spectrum can be used for both wire-line and wireless services, Wells Fargo analyst Marci Ryvicker wrote in a research note Wednesday.

"While Dish has still not provided a clear plan for the spectrum, we note that this spectrum is 'already in handsets' and ready to deploy," Ryvicker wrote.

TerreStar offers wholesale wireless voice and Internet services through ground-based and satellite communications systems. The company currently partners with AT&T on a cellphone service.

TerreStar says its satellite allows "service to be added to mainstream cellphones with little or no penalty in size and weight."

In February, a deal to give ownership of TerreStar to Dish sister company EchoStar, also chaired by Ergen, was mutually withdrawn for undisclosed reasons. EchoStar is a TerreStar debt holder, with its stake valued at $647 million at the end of the first quarter, according to a regulatory filing.

Dish's agreement to serve as the stalking-horse bidder was revealed in a bankruptcy-court filing made public Wednesday.

TerreStar wrote in the filing that the deal will allow the company "to further test the purchase price against the market and maximize value through the auction process."

Dish is in the process of acquiring another bankrupt hybrid-satellite-technology company called DBSD.

Ergen has said Dish would likely need to partner with an established cellphone company if it were to launch mobile broadband and voice service.

Andy Vuong: 303-954-1209, avuong@denverpost.com or twitter.com/andyvuong"

New Court documents today

POST-CONFIRMATION QUARTERLY OPERATING REPORT
FOR THE PERIOD FROM JANUARY 1, 2011 TO MARCH 31, 2011

Schedule of Cash Receipts and Disbursements (Unaudited)
Cash Basis (in millions)
January 1, 2011 to March 31, 2011
CASH (Beginning of Period) $ 81
Income or Receipts 491
Disbursements
Operating Disbursements 494
CASH (End of Period) $ 23

http://www.kccllc.net/documents/0911233/0911233110418000000000001.pdf

Under the Plan, the next Periodic Distribution Date is scheduled to occur on or about July 8, 2011.

http://www.kccllc.net/documents/0911233/0911233110418000000000002.pdf

Good chance CHMT returns to BK within three years.

From the 4th quarter report pension liabilities jumped to 498 million (2010) from 151 million (2009). They exited bankruptcy with total debt of 1942 million. They have not shown a profit for the last six years. If they violate any of their covenants around their loans because of another economic slowdown they could be forced back into BK.

For CEMJQ holders the following is from a letter you should receive, soon. Do the math and check for rounding errors.

"The First Supplemental Distribution to holders of Class 13a Interests will be made on or about March 7, 2011 in the form of Cash and New Common Stock, as defined in the Plan. The
aggregate value of the New Common Stock to be included in the First Supplemental Distribution is approximately $2,814,972 (valuing the New Common Stock at the Plan valuation per share of
$13.45), and the aggregate value of Cash is approximately $459,218. The First Supplemental Distribution will result in approximately 0.000861 shares of New Common Stock and $0.001888
in Cash being distributed for every one share of common stock previously held in the Company prior to its chapter 11 filing.
Pursuant to section 7.7(b) of the Plan, whenever any payment of a fraction of a share of New Common Stock would otherwise be required, the actual distribution will reflect a rounding
of such fraction to the nearest whole share (up or down), with half or less being rounded down. As a result of rounding, certain holders of Class 13a Interests will receive only Cash on account
of their interests and will not receive the shareholder statement described herein. Whenever any payment of less than $1 of Cash would otherwise be required, the actual distribution shall reflect
a rounding of such Cash to the nearest whole dollar (up or down), with $0.50 or less being rounded down. Accordingly, if a holder of Class 13a Interests were entitled to a payment of one
half or less of a share of New Common Stock or $0.50 or less in Cash, such holder will receive nothing on account of his or her Class 13a Interests. To the extent applicable, a shareholder statement indicating the number of shares of New Common Stock that have been issued on account of your Class 13a Interests as part of the First Supplemental Distribution is enclosed with this letter. You may also receive a check payable in the amount of Cash to which you are entitled, if any, in a separate mailing. Please allow at least 10 days from receipt of this letter to receive the Cash portion of the First Supplemental Distribution. If you believe you are entitled to a Cash distribution and it is not received after 10 days, please contact the Debtors’ claims agent at (866) 967-0261."

http://www.kccllc.net/documents/0911233/0911233110307000000000005.pdf

NEW SC 13D/A: As of February 4, 2011, Tengelmann Warenhandelsgesellschaft KG still owns 54.3% of the stock (35,785,764 shares).

http://www.sec.gov/Archives/edgar/data/43300/000095015711000132/sc13da.htm

We are at a disadvantage since we can only track the three bonds listed. There are two additional bonds (2015 and 2039) which the author may be referring to. The 2015 bondholders were the ones who objected to the DIP. The bonds and amounts are as follows:

5.125% bond due 6-15-2011 amount 165 million
9.125% bond due 12-15-2011 amount 12.8 million
6.75% bond due 12-15-2012 amount 255 million
11.375 % bond due 8-4-2015 amount 254.4 million
9.375% bond due 8-1-2039 amount 200 million

With the bond trading at a discount it would be easy for the major shareholders to slowly buy up the debt at less than 40 cents on the dollar. If you look at the trading on the bonds in the days after 12-9-10 someone bought a lot of bonds. The bonds for PPC and CEM both traded at larger discounts than GAPTQ during there bankruptcy. It took several months before their value increased.

From 1-4-11

"A few weeks ago, we introduced The Great Atlantic & Pacific Tea Company's Bankruptcy. Bonds are currently up from our recommended price and are trading in the low 90s context"

http://www.distressed-debt-investing.com/2011/01/great-atlantic-bankruptcy-and-adequate.html

"Under the Plan, the next Distribution Date is March 10, 2011." On March 10 CEMJQ holders will receive at least 3.2 million and hopefully some of the 76 million from the disputed claims.

REORGANIZED DEBTORS’ FIRST POST-CONFIRMATION STATUS REPORT

• Pursued the estimation of the claims of Oildale Energy, LLC at a contested hearing before the Court on November 10, 2010. The matter has been taken under submission by the Court, but as a result of the estimation hearing, the Reorganized Debtors entered into an Amended Consent Order Establishing A Revised Segregated
Distribution Reserve Amount with Respect to Disputed Claim of Oildale Energy LLC in Connection with Confirmation of the Joint Chapter 11 Plan Of Chemtura Corporation, et al. [Dkt. No. 4735], which reduced the value of the Segregated Reserve with respect to Oildale Energy LLC to $14,487,386. As a result, $1,776,378
of value was released from the Segregated Reserve with respect to Oildale Energy LLC for distribution pursuant to the terms of the Disputed Claims Reserve Order and
the Plan;
• Obtained Court approval to settle the claims of Spartech Polycom, Inc. for an aggregate amount of $4,188,000, which resulted in the release of $3,812,000 from the Segregated Reserve with respect to Spartech Polycom, Inc. for distribution pursuant
to the terms of the Disputed Claims Reserve Order and the Plan;
8 The Pentair Order is currently under appeal [Dkt. No. 4610]. On December 10, 2010, the Reorganized Debtors filed their designations of additional items to be included in the record relating to this appeal [Dkt. No. 4708]. The Reorganized Debtors are prepared to further address the appeal as necessary.

• Obtained Court approval to settle the claims of FLABEG Technical Glass US Corporation for an aggregate amount of $30,000, which resulted in the release of $30,000 from the Segregated Reserve with respect to FLABEG for distribution
pursuant to the terms of the Disputed Claims Reserve Order and the Plan;
• Entered into a stipulation to settle the claim of The Dow Chemical Company for an aggregate amount of $145,000 which is scheduled to be presented to the Court on January 18, 2011. If approved by the Court, the stipulation will result in the release
of $830,000 from the Segregated Reserve with respect to The Dow Chemical Company for distribution pursuant to the terms of the Disputed Claims Reserve Order
and the Plan;
• Obtained 11 Court orders at a hearing on December 7, 2010 granting the Debtors’ Tier I Objections to Claims and expunging over 570 Disputed Claims asserted in an aggregate total amount of approximately $76,100,000;



http://www.kccllc.net/documents/0911233/0911233110121000000000011.pdf

Same peer group as ALB which was downgraded yesterday from buy to neutral

When you have a large shareholder like bo pilgrim at pilgrims pride they are going to push management to find a solution that returns value to the shareholders. Lets hope they act like bo and find a buyer.

If they had written their shares off then they would have unloaded them and taken a tax loss.

Tengelmann filed a document on 1-14-11 showing they still own 44 % of the commons and 35 % of the preferred shares.

"PLEASE TAKE FURTHER NOTICE that, as of December 31, 2010 Tengelmann
Warenhandelsgesellschaft KG has Beneficial Ownership of 23,785,764 shares of Common Stock and 60,000 shares of Preferred Stock."

http://www.kccllc.net/documents/1024549/1024549110114000000000010.pdf

The release of distributable value from the disputed claims will done per the procedure in paragraph 4.

The Spartech claim was 8 million. It has been settled for 4.188 million (order signed by gerber, document 4736). CEMJQ gets 3.812 million (50% to be paid ASARP)

The dow claim has been submitted for signature. (document 4857)
When approved CEMJQ gets 830,000 (50% to be paid ASARP)

Added these to the Oidale claim CEMJQ gets 1.78 million (50% to be paid ASARP)

ASARP "as soon as reasonably practicable"

4. To the extent that a release of distributable value from the Spartech Reserve or any Objecting Creditor Reserve is authorized by a later order of this Court, including an order wholly or partially disallowing the claim of any Objecting Creditor or an order estimating any such claim at less than the value originally reserved (but, for the avoidance of doubt, not to the extent such order solely directs distribution of value to the creditor for whom the reserve is maintained as a result of an allowance or partial allowance of such creditor’s Disputed Claim), the distributable value so released shall be treated as follows:
(i) 50% of released distributable value from the Spartech Reserve and 50% of released distributable value from any Objecting Creditor Reserve shall be transferred to the Non-Objecting Creditor Reserve, until such time as an aggregate of $15 million (the “Additional Reserve Amount”) has been transferred to the Non-Objecting Creditor Reserve, and the remaining 50% of distributable value from the Spartech Reserve and any other Objecting Creditor Reserve shall be distributed as soon as reasonably practicable pursuant to section 8.5(b)(iv) of the Plan; and (ii) after the Additional Reserve Amount has been funded, 100% of all released distributable value from the Spartech Reserve or any Objecting Creditor Reserve shall be distributed as soon as reasonably practicable pursuant to section 8.5(b)(iv) of the Plan.

http://www.kccllc.net/documents/0911233/0911233101029000000000007.pdf

The only hope to reach $50 is a buyout or a board of directors who brings in new management.

The minimum opening bid from the auction document was 3 million. So we have a bid of 11 million which is 3.66 times the minimum. The note holders are owed 19 million (plus interest). They have the option to credit bid using what they are owed. Lets hope they do which will push the bid above 20 million. Then the true bidding can start.

New doc posted, Oidale claim settled. Holders of the old stock will share $1,776,378

3. The amount of $1,776,378 released from the Oildale Segregated Reserve shall be distributed in accordance with the terms of the Disputed Claims Reserve Order

http://www.kccllc.net/documents/0911233/0911233101129000000000012.pdf

How truthful is the CFO (per Judge Gerber)when he does not appear to be able to follow the Law. On 11/10/2010 his form 4 shows an amount of old stock (415,454) which does not appear to match up with his last form 4 on 11/11/2008 (488,272.28 shares). If the difference is due to restricted stock not vesting he should have included a footnote stating that. Regardless, he will be getting a letter from the SEC to explain why the numbers do not add up.


http://www.sec.gov/Archives/edgar/data/1091862/000118143110055731/xslF345X03/rrd291213.xml

http://www.sec.gov/Archives/edgar/data/1091862/000114420408063088/xslF345X03/form418329_111308075711-.xml

The trading in the new Chemtura security is valid only if issued. If it is not issued all trades are null and void.

"When issued and when distributed cleared transactions shall be settled andpayment therefor made at such time, in such manner and by the delivery of securities and/or other property as the Corporation may determine, or shall be canceled and thereafter shall be null and void if the Corporation determines that the plan or proposal pursuant to which the securities were to be issued or distributed has been abandoned or materially changed."


http://www.dtcc.com/legal/rules_proc/nscc_rules.pdf

From page 21 of gerber's bench decision, He makes the following statement.

"If I were required to find a specific valuation for the Chemtura Debtors here, I think that, based on the foregoing and the additional factual analysis discussed below, any valuation would
be at the low end of the Lazard range. But for the purposes of this controversy, I don’t need to find an exact valuation. To determine that the Plan does not violate section 1129(b)’s “fair and equitable” requirement by paying creditors more than in full, I need only find that the Debtors’ TEV doesn’t exceed the TEV underlying the Settlement."

The debtor's TEV assumes the new stock has a value of $15/share. I have assumed that is based on a midpoint value of 2.05 billion. Since someone was smart enough or dumb enough to apply to trade the new stock before issued we get a real number for its value. For each one dollar it trades above $15 adds 100 million to the TEV. Lazard's TEV range is 1.9 to 2.2 million. At the current price of $16.3 that gives a TEL of 2.23 billion (the average closing price for the 5 days it has traded is $15.82, TEV 2.13, 20 million shares traded). If the price continues to go up the plan may well violate section 1129(b)'s "fair and equitable" requirement. But regardless, the price of the new stock shows that the TEV is on the upper range of Lazard's TEV.

It appears that two groups are drawbridge (14.59 million shares) and fortress (6.27 million shares)are combining forces. Hopefully to work on an appeal.

"This JOINT FILING AGREEMENT, dated as of November 1, 2010, is entered into by and among FIG LLC, Fortress Operating Entity I LP, FIG Corp., Fortress Investment Group LLC, Fortress Principal Investment Holdings IV LLC and Drawbridge Special Opportunities Advisors LLC (collectively referred to herein as the “Parties” and each individually as a “Party”)"

http://www.sec.gov/Archives/edgar/data/1091862/000134100410001799/ex2.htm

Bond prices hit new highs

2009 bond 130
2016 bond 138
2026 bond 141.5

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=MTYzODkzQUE4

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=OTc3Mzg1QUs5

http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=MzkwNTY4QUEx

"Gerber said that his conclusion on value was bolstered by how holders of 78 percent of the bonds elected to receive cash rather than stock, even though stock would give them a 20 percent or greater return if the equity committee were correct in its valuation"

what twisted logic
we write the plan that gives us stock and cash, then vote to say we want cash, the judge believes our vote and not our actions, if we really wanted cash we would just sell the bonds.

http://www.businessweek.com/news/2010-10-22/scotia-palco-chemtura-ggp-tousa-bankruptcy.html

The jump in the bond prices shows that Gerber got it wrong on the valuation. The EC should be able to use this in the appeal.

GLK.GA 2009 bond 126 +12.1
CEMJ.AD 2016 bond 128 +9.5
CEMJ.AA 2026 bond 129 +17

1)Those 19 investors were asked to invest in a company that had not yet settled the environmental or the diacetyl lawsuits.
2) Never show what you are willing to pay until you know what the opening bid is. The judge has set the opening bid at 2.05 billion. If anyone is interested we should find out in the next few weeks.
3) No one else can solicit support for a plan till the end of November.

What leak?? If any news it will be announced before the market opens.

Are they loaning people the stock to short? They may be setting up a short squeeze so that they can make a bundle.
Here is how it could work
1. loan large amounts of stock to people who want to short the stock
2. Buy the shorted stock at a low price(3-4 cents)
3. Tell your broker you don't want anyone to use your stock to short (call your loan)
4. The shorts then have to buy on the open market and you have all the shares (you can name your price).

Shares Outstanding: 8.41M (from last quarterly report)

Form 4 filed by Raymond P Warrell JR who owns 45,744,297 after conversion (since we do not have a form 13HF we do not know the actual share count that was issued). This should be a red flag to anyone who shorted. Without the share count you may be caught in a short squeeze if Warrell owns the majority of stock (He could own as much as 80 %).

http://www.sec.gov/Archives/edgar/data/880643/000114036110041102/xslF345X03/doc1.xml