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They are doing this because they believe they will have their POR approved before then. It avoids a public fight in which private details could be made discussed in open court.
Short Interest (Shares Short) 42,700
http://shortsqueeze.com/?symbol=cemjq&submit=Short+Quote%99
"HOUSTON (ICIS)--US specialty chemicals producer Chemtura was still waiting as of Friday morning for confirmation of its reorganisation plan, a key step for its emergence from bankruptcy protection.
Confirmation hearings had started on 16 September, and they concluded last week, according to Chemtura.
"We are waiting, along with everyone else, for the court's ruling," according to a statement by John Gustavsen, Chemtura spokesman.
The company has not given any timeline as to when the court could decide on whether it would confirm the plan. Nor has the company said how the court may rule."
http://www.icis.com/Articles/2010/10/01/9397853/Court-decision-still-pending-on-Chemturas-reorganisation-plan.html
They paid 3.9 million for a claim that was estimated at 1 billion. The settlement was good news.
"Chemtura, which filed for bankruptcy protection in March 2009, sued the U.S. and several states, saying it should be able to cancel some environmental claims because of its bankruptcy. The U.S. won its bid to have the case moved to district court from bankruptcy court.
197 Sites
As many as 197 sites may be involved, the U.S. said in court papers. The Environmental Protection Agency is seeking about $2 billion in cleanup costs for at least 19 sites where it claims Chemtura is partly responsible. The largest estimated cost, $1 billion, is for a cleanup of the Gowanus Canal in Brooklyn, New York."
http://www.bloomberg.com/news/2010-07-09/chemtura-files-bankruptcy-reorganization-plan-that-includes-canadian-unit.html
From airline forum. can you say illegal retention bonus.
------ " the minimum amount of New Common Stock to be issued to Jonathan G. Ornstein and Michael J. Lotz shall be 3.75% and 2.25%, respectively.
and this ---- " The terms and conditions of the notes and the Management Note Agreement shall be substantially similar to the terms and conditions of the New 8% Notes, New 8% Notes Indenture and U.S. Airways Note, except that the Management Notes shall be subordinated to the New 8% Notes and U.S. Airways Note. At least $2 million and $1.5 million of the Management Notes shall be allocated to Jonathan G. Ornstein and Michael J. Lotz, respectively.
These are "incentives" to retain the outstanding talent of MAG's top two guys. With the talent displayed over the last four years by these two guys, and their effective leadership at getting MAG into its present dilemma, maybe some NEW talent would be welcomed.
http://www.airlinepilotforums.com/regional/47058-mesa-air-group-chapter-11-info-123.html
This should get the attention of the IRS. Lets cancel the shares and claim that we can still keep our NOL's because we have not changed ownership.
12. Restrictions on Resale of Securities to Protect Net Operating Losses
To avoid adverse federal income tax consequences resulting from an ownership change (as defined in Section 382 of the Internal Revenue Code), the articles of incorporation of
Reorganized Mesa Air Group shall restrict the transfer of Restructured Equity without the consent of the Reorganized Board for two (2) years after the Effective Date, subject to extension
for up to 3 additional years if the Reorganized Board determines in its reasonable discretion that such restrictions are necessary to preserve the value of the Reorganized Debtors’ NOLs, such
that (a) no holder of 5% or more of the equity of Reorganized Mesa Air Group may transfer any securities, (b) no transfer will be permitted if it would cause the transferee to hold 4.75% or more of the equity of Reorganized Mesa Air Group and (c) no transfer will be permitted if it would increase the percentage equity ownership of any person who already holds 4.75% or more of the equity of Reorganized Mesa Air Group, except as may be otherwise agreed to by Reorganized Board.
Looks just like CEMJQ's greed management (100 million new shares, 11 million to themselves).
Is this the Christopher Cerimele whose testimony they want to remain secret?
http://www.tradingmarkets.com/news/press-release/avd_gy_lnxsf_maruy_houlihan-lokey-boosts-chemicals-practice-and-hires-chris-cerimele-to-lead-the-charge-874750.html
From Judge Gerber
Parties should understand that the court may not (and is likely not to) rule immediately from the bench on confirmation.
(whether or not the parties establish deadlines which they would like to impose on the court).
http://www.kccllc.net/documents/0911233/0911233100915000000000001.pdf
The UCC has filed a document in support of an employee incentve plan.
"STATEMENT OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS IN
SUPPORT OF THE DEBTORS’ MOTION FOR AUTHORIZATION TO IMPLEMENT
AN EMPLOYEE INCENTIVE PLAN AND MAKE PAYMENTS THEREUNDER"
Currently scheduled for three days
Time and Date of Hearing:
September 16, 2010 at 9:45 a.m. (Eastern Daylight Time)
September 20, 2010 at 9:45 a.m. (Eastern Daylight Time)
September 21, 2010 at 9:45 a.m. (Eastern Daylight Time
http://www.kccllc.net/documents/0911233/0911233100915000000000057.pdf
"The Equity Committee’s objection to the Reorganization Plan (filed under seal), however, does not challenge the PBGC Settlement and focuses instead on enterprise valuation."
From footnote on page 4
RESPONSE OF THE PENSION BENEFIT GUARANTY CORPORATION TO THE OBJECTION OF INVESTCORP INTERLACHEN MULTISTRATEGY MASTER FUND LIMITED TO CONFIRMATION OF DEBTORS’ REORGANIZATION PLAN UNDER 11 U.S.C. § 1129(b)
http://www.kccllc.net/documents/0911233/0911233100914000000000039.pdf
They changed the symbols for the bonds. I found the 2016 and 2026. If someone can find the 2009 please post.
2026 bond CEMJ.AA
2016 bond CEMJ.AD
http://cxa.marketwatch.com/finra/BondCenter/Watchlist.aspx
Has anyone seen the EC objection? If so could you post the Enterprise Value in their objection.
"OBJECTION OF FIDUCIARY COUNSELORS INC. AND JOINDER TO THE EQUITY COMMITTEE’S OBJECTION TO THE DEBTORS’ REVISED JOINT CHAPTER 11 PLAN"
"3. To address these impediments to confirmation, the Plan should be
modified (i) to reflect the true enterprise value of the Debtors, which, as demonstrated by the Equity Committee Objection, is substantially higher than the Debtors’ stated Enterprise Value;
"Fiduciary Counselors Inc. (“FCI”), located at 700 12th Street, NW, Suite 700, Washington, D.C. 20005, is the independent fiduciary for the Chemtura Corporation Employee Savings Plan with respect to the Company Stock Fund (“Company Stock
Fund”), and a member of the Official Committee of Equity Security Holders (“Equity Committee”). FCI (i) objects to Debtors’ Revised Joint Chapter 11 Plan (“Plan”); and (ii) joins the objection of the Equity Committee to the Plan (“Equity Committee Objection”).
http://www.kccllc.net/documents/0911233 0911233100909000000000021.pdf
Nice a new investor with 10 million shares of stock
"1. Interlachen is an exempt company organized and existing under the laws of the Cayman Islands, with its registered office at Boundary Hall, Cricket Square, P O Box 1111, Grand Cayman, KY1-1102, Cayman Islands. Interlachen holds (a) Class 7 Claims (2009 Notes Claims) in the principal amount of $4,000,000,2 (b) Class 8 Claims (2026 Notes Claims) in the principal of $6,000,000, and (c) 10,009,000 Class 13a Interests (shares of Chemtura corporation(“Chemtura” or the “Debtor”) common stock)."
Airplanes used in the US air code share agreement. Leases are at lower rates and better terms. When does the US air agreement expire? The new leases expire March 31 2013.
Look who is listed as owing stock, Trian partners.
From the AFFIDAVIT OF SERVICE OF SOLICITATION DOCUMENTS TO
HOLDERS OF DEBT AND EQUITY SECURITIES
"The Confirmation Hearing Notice, Cover Letter, Disclosure Statement CD-ROM, Class 13a Registered Holder Ballot and a Return Envelope were served on the Class 13a registered holders listed on Exhibit 15 attached hereto"
From page 107 of Exhibit 15.
TRIAN PARTNERS LP 280 PARK AVE 41F NEW YORK NY 10017-1216
http://www.kccllc.net/documents/0911233/0911233100825000000000002.pdf
Has anyone looked at buys vs. sells on mesa? Is someone slowly accumulating?
Parametric Portfolio Associates still owns 1,090,279 shares as of june 30, 2010.
http://www.sec.gov/Archives/edgar/data/932859/000119312510179645/d13fhr.txt
As of June 30, 2010 ICC Capital Management Inc. is still holding 21,749,232 shares.
http://www.sec.gov/Archives/edgar/data/1002342/000108514610000758/icc2q10.txt
Monthly operating report up.
net earning 9 million
http://www.kccllc.net/documents/0911233/0911233100816000000000008.pdf
From the latest US geological survey (2010) US production is 1/3 of world production (~200,000 metric tons). World production is ~600,000 metric tons. Jordon is 85,000 metric tons. The total of the three is less than 50 %. Of course the data from the next report (2011) will show that the chinese production has dropped by 30-40 %. Both the chinese and alb need the bromine. Lets hope they make a bid.
http://minerals.usgs.gov/minerals/pubs/commodity/bromine/mcs-2010-bromi.pdf
The combined company would only have 30 % of world wide bromine production. No reason for the FTC to object.
They said they filed the new disclosure statement on july 28 but it is not on the kccllc site.
"12. Following conditional approval at a hearing on July 21, 2010, the Debtors submitted a revised version of the Disclosure Statement, together with a proposed order seeking
to approve the Disclosure Statement on July 28, 2010."
http://www.kccllc.net/documents/0911233/0911233100730000000000010.pdf
EC asking for documents and depositions????
"I hereby certify that on July 27, 2010, I caused true and correct copies of the Request of the Official Committee of Equity Security Holders for Production of Documents from Debtors
and the Notice of Depositions to be served via email and/or Federal Express (overnight delivery)on the persons on the service lists attached hereto as Exhibit A and Exhibit B:"
http://www.kccllc.net/documents/0911233/0911233100730000000000007.pdf
They generated an income tax benefit of 162.4 million as a result of the 448.9 million write-off.
Here are some sources for the EC to Ask.
Chemtura receives bids from at least two buyers for whole company; discourages interest for parts for time being - sources
By Michael Ross and Soma Biswas in New York
Published: February 19 2008 22:17 | Last updated: February 19 2008 22:17
This article is provided to FT.com readers by dealReporter—a news service focused on providing insightful intelligence on event driven situations to investors. www.dealreporter.com
--------------------------------------------------------------------------------------------------------
Chemtura, the specialty chemicals company, recently received at least two bids from sponsors interested in acquiring it in its entirety, a person claiming knowledge of the situation told dealReporter. If bids for the entire business are unsatisfactory, however, the company could look at divesting its pool chemicals and crop protection businesses separately, according to two other people claiming knowledge.
Chemtura has seen significant interest in parts of the business, including crop protection and pool chemicals, but discouraged bids for parts for now, the first person said.
Ripplewood and a consortium including Blackstone and Apollo are both thought to have submitted bids, the first person said. A source close to Ripplewood said the firm had been looking at Chemtura for a year, but did not offer further details. Additionally, Goldman Sachs Capital Partners is also thought to be involved in the process, said two of the people claiming knowledge of the process, although neither person said specifically that Goldman had put in a bid last week.
The Blackstone/Apollo consortium is working with Bill Joyce, former CEO of Nalco, the first person said. In September 2003, Nalco was sold to a consortium including Blackstone, Apollo and Goldman Sachs Capital Partners for USD 4.35bn.
Goldman Sachs has a deal pending to buy out another listed chemical company Myers Industries, but that deal has been clouded by a significant delay.
On 18 December 2007, Chemtura retained Merrill Lynch to explore strategic alternatives. The announcement came after the company had informally marketed itself to buyers for about a year, as previously reported by this news service.
Chemtura did not return calls seeking comment. It has a market cap of USD 1.74bn. Officials at Blackstone, Apollo, GSC and Ripplewood didn’t return calls either.
http://www.ft.com/cms/s/2/9ca2f194-df31-11dc-91d4-0000779fd2ac,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html
One battle at the confirmation hearing will be valuation.
We know that Apollo Blackstone (and others) were interested in acquiring the chemtura in 2008. Did they make a bid? We do'nt know, but Andre Danesh wrote a letter to the court mentioning the $9 a share
http://www.kccllc.net/documents/0911233/0911233090601000000000024.pdf
What we do know is that a Keyblanc research report valued the break-up value of chemtura at $5.65 on Jan-2008. The bondholders and creditors are saying the company is now insolvent and they are just giving a gift to the shareholders by offering them 5 % of the new stock. It is up to the EC to show the true value.
http://www.streetinsider.com/Downgrades/KeyBanc+Downgrades+Chemtura+%28CEM%29+to+Hold/3284740.html
Did the Judge not catch that if everyone is threating to file their own PORs that the current POR probably under represents true value.
"And he took it one step further than Natasha, he stated that if the Judge granted the motion, that his committee was going to file their own POR and the court could expect all the committees to do the same. ( Smart again.)
The lawyer for the Bond Holders was next and I'll have to admit I could not hear much of what he said, but what I did hear was the threat of their own POR if the motion was granted"
You do not want to be short when the possibilty exists that any of the following could happen
1. UBS files the paperwork showing they have the money to support the ECs POR
2. An unknown player enters the game now thet the POR has been filed (We known that several players were willing to buy the company when the economy was better).
3.Settlement of the NAFTA lawsuit vs. Canada. If the stockholders vote for the 5% and Chemtura gets any money it goes into Chemtura's pocket not the stockholders.
Yes saving money does benfit people working at the company as they have restricted stock options which they continue to report the amortization of (page 9).
The MOR shows revenues of 73.955 million and a operating income of 13.7 million. The next step for mesa is to negotiate with the owners of the rejected aircraft to reduce the debt by arranging a debt for equity swap.
"Chemtura Corp., a bankrupt plastic- additives maker, won court approval of the rough terms of its plan to reorganize, as a judge said shareholders could raise objections again at a hearing to confirm the plan in September."
This fight has just started. The stock tanked today but the bonds did not respond by jumping back to 110-112 range they were trading in before the EC started talking about their POR.
2009 bond 104.25 +.05
2016 bond 108.75 +3.75
2026 bond 106.25 -0.25
TRIAN PARTNERS GENERAL PARTNERS LLC PETER W MAY 280 PARK AVE 41ST FL
Document 3080, Exibit B page 2; Date 7-2-2010
Notice of service for Docket # 322: Final order establishing notification and hearing procedures for transfer of certain common stock.
This at least the fourth time the debtors have sent this order to the service list. Docket 1185, 1679 and 2346 and now 3080.
The only time Trian partners is on the service list is docket 3080.
EC files to shorten exclusive period in which only debtors can file POR
http://www.kccllc.net/documents/0911233/0911233100709000000000015.pdf
The creditors committee is exploring the sale of the company. From the bottom of page 9 (document 871)
"Additionally, Macquarie has undertaken discussions with other parties that may be interested in investing in or acquiring the Debtors."
FIRST INTERIM APPLICATION OF MACQUARIE CAPITAL (USA) INC.,
FINANCIAL ADVISOR AND INVESTMENT BANKER TO THE OFFICIAL
COMMITTEE OF UNSECURED CREDITORS, FOR INTERIM ALLOWANCE OF
COMPENSATION FOR PROFESSIONAL SERVICES RENDERED AND
REIMBURSEMENT OF ACTUAL AND NECESSARY EXPENSES INCURRED
FROM JANUARY 21, 2010 THROUGH APRIL 30, 2010.
Calls/Meetings with Creditors, Professionals and Other Parties-in-Interest. 398 hours billed.
From Airline pilot forum on United deal
MAG will present the "Settlement Agreement and Release" for the the Judge to sign on July 13th.
The settlement basically includes MAG waiving it's rights to add 20 additional CRJ-700's (under option) to the United Express service and preserves MAG's right to assume the United Express Agreement under Chapter 11.
MAG presently has 20 CRJ-700's under contract with United that gradually phases out through 2018.
winglet
http://www.airlinepilotforums.com/regional/47058-mesa-air-group-chapter-11-info-delta-lawsuit-102.html
They are also continuing to amoritize restricted stock awards (253K Filing to date) and contract incentive payments (136K). They must believe that the stock will survive.
I would think the board is not too pleased with the POR since they would likely be replaced. The debtors get to choose two directors and the bondholders/creditors get to choose six.
Good numbers. For May they list 96 aircraft with 575 daily departures (5.98 departure per aircraft). Compare to April 113 aircraft with 650 daily departures (5.75 departure per aircraft).
Loss 2.833 million which would be a profit if the following two items were removed.
reorganizatio items 2.563 million
flight operations nonoperating aircraft 5.79 million
(notice of rejection on 58 planes)
Shareholder equity 99.966 million ($0.57 share)
Cash 60.8 million an increase of 3.4 million.