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.
But
7. Class 7 - Equity Stock Interests.
(a) Classification: Class 7 consists of all Equity Stock Interests.
(b) Treatment: On the Effective Date, in full and final satisfaction, settlement, release, and
discharge of and in exchange for each Allowed Equity Stock Interest, Holders of Allowed
Equity Stock Interests as of the Distribution Record Date will receive on account of such
Allowed Equity Stock Interests the following consideration:
(i) Holders of Allowed Equity Stock Interests will receive their Pro Rata share of
the New Warrants;
(ii) Holders of Allowed Equity Stock Interests that are Eligible Holders will receive
their Pro Rata share of Rights to purchase New Common Stock, to the extent of
the Equity Offering Amount, pursuant to the terms of the Rights Offering; and
(iii) The Equity Committee and the Plan Equity Sponsors reserve the right to adjust
the treatment provided to Allowed Holders of Equity Stock Interests in order to
ensure fair and equitable treatment of all Holders of Class 7 Interests pursuant to
the Bankruptcy Code.
(c) Voting: Class 7 is Impaired by the Plan. Holders of an Equity Stock Interests are entitled
to vote to accept or reject the Plan.
Where as
60. “Equity Stock Interests” means any and all issued and outstanding shares of capital stock of
Tronox Incorporated.
What document are you reading. Can you post the link?
IT IS HEREBY ORDERED THAT:
1. A hearing on the EC Disclosure Statement Motion is scheduled for
September 23, 2010 at 11:00 a.m. (ET); and
2. The deadline for the service and filing of objections with respect to the EC
Disclosure Statement Motion is September 17, 2010, 2010 at 4:00 p.m. (ET).
It seems kinda shaddy that the debtors would "allow" them to file a plan. Think about it. How does the EC gain from submitting their plan in this recent window vs Sept. 13th? Nothing. They loose in fact because if the debtors see the ECs plan b4 then can then go back and offer better deals to cut out the shareholders.
Maybe I'm just a crazy conspiracy theorist but the debtors have been less than forthcoming with some of the information. Why not play some games with the ECs plan. Mgmt hasn't been out there representing the true owners during basically the entire process.
I suggest you read the proposal.
3 days isnt much. EC better have their shit together.
Everyone still has to be onboard.
Its a little legal maneuvering. If i'm right "the Debtors will not object to the Equity Committee filing the Proposed
Equity Committee Plan and the Proposed Equity Committee Disclosure Statement prior to the termination of the Debtors’ Solicitation Exclusivity(September 13, 2010)."
1. Limited Termination of Plan and Solicitation Exclusivity. The Debtors’
Plan Exclusivity(July 12, 2010) and Solicitation Exclusivity(September 13, 2010) shall be terminated for the sole purpose of
permitting the Equity Committee to file the Proposed Equity Committee Plan and the Proposed
Equity Committee Disclosure Statement on or after August 27, 2010, but by no later than
September 2, 2010.
4. No Termination of Exclusivity for Any Other Plan. Nothing contained in
this Stipulation will operate to terminate the Debtors’ Solicitation Exclusivity with regard to the
filing of a plan of reorganization by any party other than the Equity Committee.
Eclipse,
You sure nothing has changed? I haven't had a chance to compare it against July's.....work gets in the way of these things.
Think we'll see the ECs POR this week?
Things just escalated.
That's what we are waiting for Jax. I did like to see that bolded out though...kinda makes my heart skip a beat.
FTFY: These were the numbers we were waiting to see, now we know the equity committee is trying to preserve full value for shareholders, which would be a floor $5.50 PPS.
From madclown: http://tronoxequity.blogspot.com/2010/08/debtwire-article-outlines-tronox-equity.html
Debtwire Article Outlines Tronox Equity Committee Plan Framework
According to a Debtwire article dated August 11, 2010:
Tronox share holders make rights offering backstop commitment for alternative POR
Story: Tronox’s official equity committee is putting money where its mouth is. The group has agreed to finance a USD 120m-USD 130m rights offering in support of an alternative POR that preserves share holder value, said three sources familiar with the matter.
The committee, led by Ahab Capital and RLR Capital, plans to present its agreement to the debtor by next week, setting the stage for a valuation battle with holders of Tronox’s USD 350m 9.5% unsecured notes due 2012.
The plot thickens at yet another pivotal point in the Titanium Dioxide producer’s Chapter 11 stay. Although the debtor maintains exclusivity though 13 September and has a POR on file with the court, none of the major case constituents – including bond holders, share holders and Tronox’s largest creditor, the EPA – are on board.
Plans from all sides
Tronox’s POR calls for the full equitization of the 9.5% notes and the extinguishment of common stock. Environmental creditors represented by the EPA would get USD 150m in cash, preferred stock, warrants, and interest in a litigation trust against Anadarko Petroleum. Anadarko is the owner of Tronox’s former parent, Kerr McGee, and is the defendent in a related fraudulent conveyance case.
By contrast, broad strokes of the share holder proposal would pay off the EPA with a USD 275m cash settlement of remediation claims, funded with the rights offering and company cash, the sources said. Meanwhile, note holders would get a par plus accrued recovery through equitization and the option to participate in the rights offering. Share holders would endure some dilution, but stay in the money.
Conceptually, the share holder alternative tracks a similar plan put forth by note holders last month but with two notable exceptions. That deal aims to give the EPA around USD 275m in cash, funded instead by a backstopped bond holder rights offering worth up to USD 125m. Share holders would then get wiped out under a lower valuation and bond holders would be fully
equitized, as reported previously.
“The EPA wants a cash recovery, so the question is who has the right to do a backstop: share holders who could be in the money, or bond holders?” said one of the sources. “Bond holders want to settle this quickly to preserve trading value of their note, but share holders have leverage --- they have little to lose challenging the legitimacy of the EPAs claims in discovery. The equity can drag out the question: Why should Tronox owe the EPA anything? Why doesn’t it all fall onto Kerr McGee/Anadarko?” Tronox’s 9.5% notes last traded at 90 on 5 August, up from 83 on 16 July, according to MarketAxess. The debtor’s common shares traded at USD 0.30 today for a USD 12.5m market cap.
Value gap
Setting aside the EPA and rights offering dramas, advancing a share holder friendly alternative also rests on the enterprise value exceeding the company’s USD 1.1bn claims pool, the sources said.
Tronox’s POR set a mid point EV of USD 1.06bn based on USD 190m of 2010 EBITDA, implying a 5.5x multiple. Shareholders are planning to assert Tronox will generate around USD 220m-USD 250m of EBITDA over the next two years on the back of improving TiO2 industry fundamentals, the closure of unprofitable plants and the expansion this year of its Australian footprint, the sources said.
Assuming the USD 220m of EBITDA and a higher 6x multiple – a full turn discount to the 7x trading multiple on publicly traded competitors Huntsman and Rockwood Holdings – gets to a USD 1.32bn EV. That would preserve around USD 220m of value for shareholders, a premium to today’s USD 12.5m market cap.
Making a counterpoint, one bond holder dismissed the equity scenario as too aggressive considering Tronox lacks the diverse product offering of higher multiple competitors and averaged USD 190m of EBITDA in the three years before it filed for bankruptcy in 2009.
Calls to Ahab Capital, RLR Capital, equity committee legal counsel Pillsbury Winthrop and financial advisor Eureka Capital were not returned. Calls to officials with debtor counsel Kirkland & Ellis were also not returned.
www.debtwire.com
by Andrew Ragsly
Source: Debtwire, Court document(s)
Intel. Grade: Strong evidence
Intelligence
ID: 1023671
You guys got the newswire on the price increase, right?
http://www.prnewswire.com/news-releases/tronox-announces-tio2-price-increase-100349434.html
naw. I was just reading the documents.
25th Omni has 25 claims - Undetermined values.
24th Omni has 484 claims - mostly half a mill but there are a number of undetermined
23rd Omni has 377 claims
22nd Omni has 376 claims
21st Omni has 580 claims -skimmed through...a lot of undetermined.
20th Omni has 750 claims
19th Omni has 750 claims
18th Omni has 750 claims -skimmed through...a lot of undetermined.
17th Omni has 750 claims
16th Omni has 750 claims.
That still leaves 5909claims.
Weren't there a bunch of duplications to the tort claims filed on the 6th?
Heres the quote i get from my broker. Sorry bout the crappy pasting. 13 Messages remaining. What paid plan do you all have?
Security: '897053AB0' (Quantity priced: 10 Bond) - 1 Results, Retrieved: 9:45:18 PM ET, 07/08/2010
Description
Coupon
Maturity
Price
YTM
YTW
Callable
Accrued
Interest
Estimated
Total Cost
N/R --- TRONOX WRLDWIDE *IN DEFAULT* 897053AB0
12/01/2009 @ 104.75000 Continuously-Callable
9.500
Dec 01, 2012
99.10000
0.000
0.000
Yes
$0.00
$9,910.00
Come on guys harden up a bit. Volume on B is so small of course its going to have extreme volatility. .25% of outstanding shares trade on a "high" volume day. There are hours that pass where no shares trade. If someone puts in an order for 10k they will move the price 10% or more...about a couple of pennies. Never mind if someone wants to blow out 10k.
We are waiting for news on a new POR, We'd like to see more about the subs regarding Rule 2015, Go over your notes. Remember why you hold this. Everything else is noise. If something substantial changes then reevaluate...price movements are not substantial unless there is a good reason.
Let Mr. Market be your servant not your guide.
patience. Its a marathon not a sprint.
This really only goes one of two ways here in the next 20 days. Either to 0/near zero or to whatever the EC can reasonably get. It's gonna be independent of any ta patterns.
Sorry...still a newbie here. What are some of the key court dates coming up? Anyone?
Not that it matters but is there anywhere to see what the historical charts look like pre bk?
It just says periodically. I would assume we would see something soon.
Rule 2015.3. Reports of Financial Information on Entities in Which a Chapter 11 Estate Holds a Controlling or Substantial Interest
(a) Reporting requirement.
In a chapter 11 case, the trustee or debtor in possession shall file periodic financial reports of the value, operations, and profitability of each entity that is not a publicly traded corporation or a debtor in a case under title 11, and in which the estate holds a substantial or controlling interest. The reports shall be prepared as prescribed by the appropriate Official Form, and shall be based upon the most recent information reasonably available to the trustee or debtor in possession.
(b) Time for filing; service.
The first report required by this rule shall be filed no later than five days before the first date set for the meeting of creditors under § 341 of the Code. Subsequent reports shall be filed no less frequently than every six months thereafter, until the effective date of a plan or the case is dismissed or converted. Copies of the report shall be served on the United States trustee, any committee appointed under § 1102 of the Code, and any other party in interest that has filed a request therefor.
(c) Presumption of substantial or controlling interest; judicial determination.
For purposes of this rule, an entity of which the estate controls or owns at least a 20 percent interest, shall be presumed to be an entity in which the estate has a substantial or controlling interest. An entity in which the estate controls or owns less than a 20 percent interest shall be presumed not to be an entity in which the estate has a substantial or controlling interest. Upon motion, the entity, any holder of an interest therein, the United States trustee, or any other party in interest may seek to rebut either presumption, and the court shall, after notice and a hearing, determine whether the estate's interest in the entity is substantial or controlling.
(d) Modification of reporting requirement.
The court may, after notice and a hearing, vary the reporting requirement established by subdivision (a) of this rule for cause, including that the trustee or debtor in possession is not able, after a good faith effort, to comply with those reporting requirements, or that the information required by subdivision (a) is publicly available.
(e) Notice and protective orders.
No later than 14 days before filing the first report required by this rule, the trustee or debtor in possession shall send notice to the entity in which the estate has a substantial or controlling interest, and to all holders – known to the trustee or debtor in possession – of an interest in that entity, that the trustee or debtor in possession expects to file and serve financial information relating to the entity in accordance with this rule. The entity in which the estate has a substantial or controlling interest, or a person holding an interest in that entity, may request protection of the information under § 107 of the Code.
(f) Effect of request.
Unless the court orders otherwise, the pendency of a request under subdivisions (c), (d), or (e) of this rule shall not alter or stay the requirements of subdivision (a).
Notes
Hey can anyone refer me to the letter that Greenstone sent to the court regarding Rule 2015?