Linda is biotch...! LOLz JayKay
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DEBTORS’ THIRD MOTION FOR AN ORDER EXTENDING DEBTORS’ EXCLUSIVE PERIODS WITHIN WHICH TO FILE A PLAN OF REORGANIZATION AND SOLICIT VOTES
Hearing scheduled 8/20/2013 at 10:00 AM
Great another LONG delay. Debtors cant come to an agreement. Money being drained every day as this drags on ...
Debtors are already negative equity... how much of the creditors' money do they want to flush down the toilet? Looks like the hedge funds are going to steal this carcass...
imo
I agree, seems one sided. eom
According to the court/judge/patriot coal, if they were not "key" personnel , they aren't worth retaining, therefore replaceable.
"Key" personnel likely have some degree or skill worth retaining, however, like I said, pawns and grunt worker are easily replaceable and likely uneducated/no degree.
Coal industry is in a slump, lowered demand and in heavy competition with natural gas.
Mines are closing and miners are getting laid off. They are a dime a dozen.
Imo
Hostess vs. Patriot Coal
You can almost replace "Hostess" with "Patriot Coal" in the below article as this pretty much sums up what Patriot Coal is facing.
Apples and oranges. There is no money for Lehman. Lehman is dead and in liquidation. They are not compareable.
WMIH, on the other hand, has a very good chance to prosper.
IMO
Keep in mind, Patriot has been "buying" votes in the form of settlements for the POR to pass. (i.e., non-Union settled, certain large creditor who were formerly against the Debtors are now aligned with the debtors as evidenced during the last trial when the certain large creditors withdrew their objection to the Union receiving 35% of NEW equity in the reorganized patriot Coal, the list goes on...)
It seems that everyone is on board except the Union. If the Union and Patriot can settle that $35 to $40 million, then the POR is as good as confirmed, just needs to be official. (Yes, factor in the time to POR/DS filing, voting, amendments, confirmation hears, etc, it will take months).
I gotta get back to work, good luck.
imo
I commend you on what you are doing (however, ECs are based on EQUITY if there is any), but keep in mind, Patriot will enact the modification of the wages/benefits, etc on the Union on July 1st, and the Hedge Funds are going to provide exit financing to Patriot to finish the POR/DS.
Patriot and the Union are only in disagreement in the amount of $35 to $40 million. Once that is settled, and I do believe they can get this settled soon, I expect the Hedge Funds exit financing details to finalize.
June 30 is the Union vote as whether to strike or accept the wage/benefits modification that will be implemented on July 1.
That said, your time line is very short.
Either the Union strikes and Patriot goes into liquidation with the Hedge funds picking up everything on the cheap ...
OR...
Everything is settled between the Union and Patriot and a POR/DS comes within the first 2 weeks of July.
NOTE: a substantial amount of the Union employee/retirees, etc did mass mailings as you are suggesting. The result was no effect on the LAW. The Judge acknowledged she read some 900 letters, however, stated something to the effect: the law is the law, although sympathetic the retirees, the LAW cannot be changed.
IMO of course
I assume you called and spoke to the attorney to confirm the equity committee being denied/rejected 3 times.
Shareholder's Equity (Deficit) ($373,266)
MOR of May 31, 2013 (Amounts in thousands)
Assets $3,675,232
Liabilities $4,048,498
Being at work prevents me from reading the whole thing.
http://www.patriotcaseinfo.com/pdflib/4204_51502.pdf
Call them back and ask if the trustee denied an equity committee in New York and Missouri.
I guarantee they will agree with me.
Equity committee was Rejected/denied 3 times.
Trustee in New York.
Trustee in Missouri.
The current acting bankruptcy judge.
http://www.jdsupra.com/legalnews/bill-on-bankruptcy-lawyers-must-disclos-56121/
Patriot Coal starts at 2:50 minutes (or you start from the beginning).
If the Union is smart, they will NOT want to end up like Hostess who was forced into liquidation by a Union strike.
Pretty interesting timing in that Hedge funds may provide exit financing and Patriot won approval for bonuses to be paid retention/performance bonuses to KEY EMPLOYEES (no longer needing the over priced Union workers who are a dime a dozen).
If the Union strikes, I am sure the hedge funds will get Patriot Coal on the cheap and hire more NON-Union workers (just like they did in Hostess).
imo
Because equity is going to get wiped out. imo eom
It is too late in this stage of game for one, especially since the Trustee denied an EC 3 times and the court denied direction for a Trustee to appoint an EC.
The best bet was that last attempt that was heard in court.
Patriot offering new shares and more financing pretty much sums up that Patriot has no equity/liquidity.
I'd say zero chance of EC at this point. Lower tiered bonds and general creditors are in jeopardy.
imo of course.
Don't expect too much from her, she is only a "common" person, not anyone with any "pull".
I don't have PM, but I agree. Eom
We won't know until the POR/DS is filed, however, 35% to the Union was described as worth "hundreds of million" and the hedge funds involvment was also described as "hundreds of million". So to me, hedge funds portion will be similar to Union's PLUS the hedge funds distress debt purchased, which may push their ownership above 50% of the NEW Patriot in favor of hedge funds.
All we know is that OLD equity is gone, the question is if they will be allocating a small portion to OLD equity if OLD equity makes a big stink of it, but without an EC... I doubt it.
The way it is going, I don't see anything going to OLD equity if Patriot has to raise new money and more financing from hedge funds.
Don't hold me to the numbers as I am just using it as an example.
I have to get back to work, good luck.
imo
Ok, I think I have found it: $4.161464836
So what kind of PF shock is this? No conversion/no divy (I know, no divy during BK). Cant find a value. Traded in the $3'ish range, fluctuated, and continued to drop...
Any comments would be appreciated, thanks.
It in not up to the judge, it is up to the debtors who will present a proposed POR and "votes" from qualified parties, for or against it, then the Judge to confirm it.
That is the American way.
imo
A strike would force Patriot Coal into Liquidation which is bad for EVERYONE (all stake holders), not good.
The problem is that the Union has not learned from Hostess' Union strike. The Union were on strike and Hostess went into liquidation, everyone lost, except the hedge funds.
imo
Last $49.50 ask $50.xx
Sorry, can't help you there. Eom
You don't see the millions of bonds that traded on both issues and the ask moving up. Eom
Both, eom
Bond prices are firming up. eom
No BID and lowered ASK means Bond holders are not confident in their recovery (amount) = Bad news. There was always a BID until today (after the entering of yesterday's Order). My speculation is that "they" want to see if the Union strikes and force Patriot into liquidation or not.
Bonds holders come before shareholders.
Bond Maturity means nothing while in BK, just noticed that they mature tomorrow.
imo
8.25 Bonds has no BID and lowered ASK. 3.25 Bonds mature tomorrow, May 31, 2013. eom