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I meant in general. All I'm saying is why badger people for not talking when it's their red day!
Just like longs are mysteriously quiet on red days? its all the same hah
Yeah I stand corrected as to why the per share price is 12.66, however still part of a equity incentive plan dated in 2014.
No where have I expressed my opinion on the validity of this company or its share price, I only responded to your false claim that insiders where buying shares.
THESE ARE NOT INSIDER BUYING. READ CLOSER
"The RSUs were awarded on December 23, 2015 under the 2014 Second Amended and Restated Long-Term Incentive Plan."
THESE ARE PART OF AN EQUITY INCENTIVE PLAN DATED BACK IN 2014.
$12 a share, ouch.
The way I see it, once equity is "recalculated" the DIP lenders will always undervalue a company....
its just in their best interest..and they really can. They are in charge of this case once the DIP loan is signed. they have Alpha by the throat.
unless an equity committee is in place or a shareholder group can fight for value some way some how.
Merry Christmas btw
Such is life
No news yet from what I can tell..
Great post SC, i'm telling you riight now, there is a corruption in the bankruptcy system and its that of the senior secured lenders. Citibank...
Don't you think its funny how the top of the food chain citibank objected to an equity committee? It goes against their interests if an equity committee is formed. Makes it harder to steal the company.
they could have made their freaking debt payments
Sick and tired of seeing Lenders just steal companies from equity over and over. Need a good ruling here tomorrow
Moreover, the Form 10- Q discloses that on June 30, 2015 the Debtors borrowed an additional $445 million under the Citicorp loan facility. Id. at 12, 44. Either, the Debtors were solvent when management determined to cause them to take on half a billion in new debt within a month of undertaking bankruptcy filings en masse, or if the Debtors and Citibank are correct that the Debtors were hopelessly insolvent, then a potentially valuable derivative claim exists.
A very thought out reply in support for the equity committee motion was posted today by the moving shareholders, I urge any ANR holders to read it.
Here was my favorite line.
"
Interestingly, the Debtors go on to justify the sought after bonus
payments by reference to the book value of the Debtors on a consolidated basis. According to the Debtors, the millions in proposed payments to insiders are reasonable because the aggregate cost “represents 0.073% of the book value of the Debtors’ assets.” Id. at 13. If the Debtors view the book value of their assets as sufficient evidence of value to support the payment of millions to insiders, then certainty the same is sufficient evidence to justify the allowance of formal representation for thousands of public shareholders.
"
https://www.kccllc.net/alpharestructuring/document/1533896151216000000000002
I'm not saying they would, on the contrary I think the lenders / creditors are more toxic for shareholders. Specifically the DIP Lenders.
Honestly management is not making the decisions anymore that matter for shareholders. DIP lenders are going to run this show along with the major creditors such as the bondholders.
Hence why Shareholders believe an equity committee is necessary to represent the shareholder class.
Hearing for that is the 17th, of course the DIP Lenders objected to the motion, they don't want lawyers for shareholders interrupting their eventual plan (Whatever it may be) for the reorganization of ANR.
You realize every major coal company is going to be in bankruptcy with these current conditions right.
Interest payments are eating these companies alive.
No one expected coal prices to plummet after taking on massive debt in the 2010-2011 peak of coal era.
It's the 17th
I'm not really concerned about short term gains. So I don't think I can answer your question fully,
but there is a current motion to be heard in the court on the 17th, motion for the appointment of an equity committee in the bankruptcy case. If that is passed, long term hopes of recovery will be slightly stronger then if an equity committee was not in place.
Objections/responses to the motion are due today on the docket,
https://www.kccllc.net/alpharestructuring/document/list/4084
Here is the equity committee motion being heard the 17th in court.
https://www.kccllc.net/alpharestructuring/document/1533896151125000000000007
It's a march presentation, even I missed that on the first page of the presentation -.-
However, there is a mention of Waaree signing the exclusive agreement in June in that presentation. Surely it was updated around after Waaree signed the contract.
Surely this was actually made before GT decided to depose Merlin. I don't think it was "released" yesterday, more likely "leaked"
Do you think GTAT shareholders are being "bought out" for 33 cents per share or? Strange conclusion
You also said 50 mil shares outstanding? GTAT equity structure = 137.5 shares outstanding.
Also, NOL's carry over if Qualified Claimholders (Aka the bondholders) take over the company. So NOL's will carry over for reorganized GTAT. Existing shares or not.
Earlier this year GTAT had a disclosure to the potential DIP lenders (at the time, maybe back in February, for sure q1 2015) that scrap value of furnaces was 25k.
It does not make sense for anyone to pay more then what VAST payed for new furnaces, for used furnaces.
If furnaces are selling for scrap value..well.. :^)
I had/(Have) this hunch once Merlin was indicated being sold
How many shares of HEROQ did you pick up? Those warrants could play out before expiration (Future payday) Hercules at its top was at a 6 billion valuation
72 dollars @ 20 million shares
= 1.4 billion
Oh no, just look at the motions filed today. Many lawyers representing GT creditors filed motions to appear in court today (and for the rest of this chapter 11)
I'm not a creditor of GTAT, and even I am very scared from this line, for the sake of BK code!
" More troubling, the term sheet provides for the reorganized Debtors’ retention of all chapter 5 avoidance actions, as well as potential claims against the Debtors’ directors and officers. "
If I was an unsecured creditor, I would be super pissed.
Armada of lawyers showed up today for the unsecured creditors to fight against the proposal.
lol! Honestly what did the DIP do? Its intended purpose was to hit revenue oppertunities, yet revenue is almost non-existant still (also counting ACCTS RECIEVS)
Interest for sure ate up revenues. Shrug, guess its not over yet tho. I'll revisit this again once DIP is payed back
If any of the moving shareholders read this board, I can be contacted to provide some of my own perspective on the case so far. Maybe give a different viewpoint that will aid with the passing of your motion on the 17th.
Feel free to PM me.
Few things on my mind now though..
A) ANR shareholders will not have adequate representation without an official committee due to the fact that DIP lenders have placed numerous restrictions on the case including when the Debtors can propose a plan of reorganization. (Among the other restrictions mentioned in your motion)
B) It can be argued that the debtors were solvent on the eve of the filing due to the fact that debtors management have touted this bankruptcy as a "pro-active move"
How has Arch coal not declared Bankruptcy yet? their financials are worst then Alphas.
Arguably, Alpha made the right decision declaring bankruptcy to use the protections offered by BK code, but that does not mean Shareholders should be instantly forgotten.
Hell, just a few months ago Alpha released an investors presentation. (as mentioned in your motion of course)
I would be pretty excited if the court granted the motion directing the appointment for an official equity committee. The equity committee motion has some solid information that warrants the judge to AT LEAST consider an equity committee.
I expect the judge to either A) move the hearing to the next court date allowing more of an evidentiary type hearing, or B) pass the equity committee outright. Depends on if we see any objections from the debtors or from its creditors, and how much substance is in these objections.
The hearing is set for December 17. Objections will come in the next 2 weeks. Pay close attention to the objections (if there are any)
1.7 billion in Stockholders Equity alone warrants an equity committee. Does not mean that at the end of the day shareholders will walk away with 1.7 billion, but it does mean that an Equity Committee will fight to bring back equity to shareholders. IMO.
Past courts have granted an Equity Committee to represent shareholders in the bankruptcy case by factors such as:
A) # of Shareholders
B) Adequacy of current representation
C) Likelihood of shareholders receiving value in a Plan of Reorganization balanced with the cost of lawyer fees associated with the committee (Committees are paid by the Debtors) , and
D) Debtors' solvency
All of these can be argued one way or another, except A, 5000+ shareholders on petition date. the moving shareholders will have to orally argue their point across. Hence why I say to pay attention to any objections the Debtors or creditors put out in the next 2 weeks before the hearing (if they do) . The moving shareholders motion has some solid points / claims.
So if an Equity Committee is granted, I would be excited for the future of bankrupt ANR holders. This is short term aka in the next 2 weeks. If the motion is denied, then I won't be able to give you a clear answer until 6-8 months once we know more about the coal markets and how they are in 2016.
In either cases though, for it to look very promising, we will need a coal uptrend.
Yep as the previous poster said. Those ratings are nothing to look at, especially since ch.11 was declared.
This goes up and down in the 10% range almost everyday hah, just the nature of a 2 penny stock.
Meanwhile, shareholder's equity value continues to get revised downwards every other month.
You are assuming that $70m investment is basically cash
If the $70m was put into bonds
that cashflow is negligible in the current low rate environment
Meanwhile, shareholder's equity value continues to get revised downwards every other month.
You need to learn how to understand cash flow + income statements. They did not lose 65 million cash. They lost 65 million primarily due to depreciation. It is a paper loss. You can see this on the income statement. They lost 10-15 million in total cash on the income statement due to very low margins in the coal market atm. Coal revenues are lower the cost of coal sales. Then of course S+G+A expense of 7 million. and other small expenses. ANR received a 10 mil tax benefit it seems. So real cash loss on the income statement is closer to 5 million only.
Cost of coal sale works by accounting for all of the cash spent on getting coal ready for sale that month. Even if some coal did not sell, they will have it ready for next month etc. Also cost of coal sales is taken into account for accounts receivables. They might have lost 10-15 in cash this month on the income statement, but that could be offset in the next month etc etc.
Also, just read the cash flows statement if you want to see actual cash losses / gains. actual 77 million cash loss this month, due to primarily a 70 million purchase of investments. What bankrupt company is buying investments? I would not be surprised if that 70 million was used to purchase crystal perfect securities like treasury bonds or A++ Corporate bonds just to have some cash flows with there tremendous cash amount.
I would love to know where that 70 mil went..
This is a company using bankruptcy soley as a tactic of weathering the storm of the downturn. There are such things as strategic ch.11 bankruptcies, when all other options would fail stakeholders.
Page 15. If nothing changes, that cash would be all gone in 12 months.
Mine valuation is not coming into play until Plan of Reorganization negotiations begin. And that won't be for another 9-12 months at the LEAST.
If we had a Plan of Reorganization now, and mines were valued into the plan, equity would without a doubt be wiped out. HENCE the price per share right now. Most people do not want to sit on ANR until coal finally rebounds. I bet ALOT of people are planning to buy into this stock in 6-8 months.
Speculators can speculate an appreciation in coal mines + coal sales over the next year and get into ANR on the cheap right now, AND OR wait a bit until the hype comes back for ANR (if ever) closer to POR.
German is my native language sir
If you paid attention to the docs you would know why
Terrible news? Best news since the 2014 Apple settlement is the new Apple settlement. (given the current circumstances)
Clarification, it is not unheard of for a BK company to attain DIP Financing, the wording in my post made it sound like I said that.
it is not going to put shareholders at the front of the line when it is time to divvy up the remains.
THIS GUY RIGHT HERE!
Yep, lots of breathing room added for buyers to remove the furnaces as well.
So glad he's gonna be ok for this!