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Chemtura to Issue $450 Million of Eight-Year Notes That Yield 8%
Chemtura to Issue $450 Million of Eight-Year Notes That Yield 8%
Because the Ad Hoc committwee is done with their hedge
Im sure that noone has an answer to this but, Is it a foregone conclusion that a decision will be rendered in September one way or the other? I am becoming increasingly comfortable that the longer we get real data from this company the better shape they are in. I feel like the company is trying to shot gun wedding this POR through in order to rub out all virtually all equity recovery. Is there anything that individuals can do (besides vote) to derail//delay this event?
stockboy, stick to your role
some people have. Vote is in sept so there is time. I believe you can call your broker and request it
Why do you think the CHinese care what this guy has to say? Why do you think they would respect him more than any of us?
By the way. Someone tell Natasha to shove my carrot where the sun doesnt shine.
How do you think I am voting?
Looks like the PPS was "managed "into the close. Size traded at 3:53 at .4775 and if I read it right about a 100k later to drive it down to .45 into the close.
I doubt Rogerson is in bed with these guys. Particularly if they have been on the offer of the stock. CEMJQ cannot short its own stock even if the DBAG at the helm would like to. Someone had brought up the issue about the annual meeting where shareholders get to vote Rigerson's flunkies out of the seats, apparently there is precedence in BK compnaies to get these? WS or any of the seasoned veterans know anything bout this?
New highs on good volume on very decent earnings (BTW I didnt scour the report but was there a reserve in Q2 for the 7mm handout to the ad hoc committee? Does that make Q2 look even better?
This thing is trading at 2x the vlaue of the Debtor POR, we have ridden it this far what would be the point of bailing before the final curtain now?
What do you think the reason is?
I welcome any/all responses to the view I have submitted. OR anohter plausible explanation for the PPS
There are alot of things going on here as I see it. I agree whole heartedly about justavoices summary of the banks and their willingness to lend to anything not a high probability payback or reasonably salient assets.
Initially, I havce to say I was a bit freaked out that a deal could close this quickly because my impression was that it all but sealed the debtors POR. I have siunce learned this is not the case. The other thing which has confused me is to whom is the judge (Gerber in this case obligated to) Is this some altruistic venture aimed at reviving a company and saving jobs? Or as many have suggested will he do the due dilligence necessary to uncover a truer value of this company which EVERYONE, I mean every stake holder knows to be true of this company. Those Q2 numbers showed undesputable evidence of an improving company regardless of the picture Rogerson (undesputably a self serving parasite) and the debtors and creditors who are posturing for the best deal they can get.
That leaves us with the following hopefuls: Gerber gets the game and will act appropriately at the right time. Goffman, our attourney has a plan that is yet to be rolled out. But neither of these two factors explains the bid to the equity to my satisfaction.
I have stated in the past that I think the probability of either a new deal presented by the big holders of the equity OR a takeout by one of the companies who had expresseed interest in 2008 OR even a new acquirer are higher than anyone thinks. There are a number of other banks not in the B Of A syndicate whose interests will get piqued seeing the commitment in place. Paraphrased from the movie scarface. "dont underestimate the other guy's greed"
VOTE NO, they cannot treat no voters differently than yes voters
Thankyou. Jax
Chemtura filed an S-1, I belive that is the necessary filing for new stock (came out about 6:30) Where the f is or representation?
no idea, never seen anything like this. ususally (almost always) high volume dictates directionality.
3rd day in a row of serious volume in a very tight range.
I have been asking the same question. The short interest is non exisitent, there is a very real bid below. I believe there is a very real suitor for this company who is content to wait out all of the nonsense that is going on now in the bankruptcy court. I believe that it is extremely possible/likely that large equity derivative exposure is being bough on this company and that the depth of the bid is reflective of this. Lets just say you are one n outright buyer of this company, wouldnt you just leave a bid out there that allowed you to accumulate as many shares at the lowest price that you can?
Is anyone familiar enough with the bankrupcty process to know if Gerber would be able to thwart a cash buyer late in the game?
Do we even know that he is for a fact, present at these negotiations? Its sure hard to tell by the sorts of results/news we are getting.
What a monster share day with just a .01 cent change.
sorry my computer is ill
It took a pretty good frontal assault and hung in there. They have been in court all day, I wish Scadden had someone posting (they never would , lawyers never sign anything) If anyone has any clarity out there ...thanks in advance
There is a headline, with no story "Chemtura Creditors Resolve Dispute Over Plan Support Agreement"
Not ure what this means, anyone?
I just put in a size bid at .37, I hope someone hits me, I really do
what the heck just happened?
seems like I too double/triple posted accidentally
If I a right about derivative buying in the stock, its likely that the street participants that sold the exposure will be on the bid for a while an if the sellers dry up we could see some really interesting pops.
So Natasha's arguement that the EC POR relied on too much leverage and here go the parasites essentially driving down the same path. Someone help me understand why the Ad Hoc bond committee is entitled to 7mm dollars (I missed the explanation for that)
Meanwhile, did some digging. It was discussed on the board last week that there was a requirement to notify the bankruptcy judge on accumulations above 5 pct. It looks like the number may be higher than this. Additionally, it is possible to buy derivative (long equity exposure) which exceeds these limits. The investor buys the derivative and then the counterparty has to cover that exposure in the cash (equity in this case) market. This would offer an explanation as to why so many shares traded last week at .40
Geez I hope Gerber gets what is going on here.
Fern, I think you are spot on here. Its the logical explanation for the volume on the bid when short interest has fallen to close to zero. Arguably there are still some longs content to exit at/around these levels, but really beside the manipulation of management and debtors and a disappointing Gerber decision. Everything fundamental has been better than expectations on this company for a while now.
Claims have been settled at well below worst expected outcome. Chemical industry earnings have been stellar. Revenues for Cemjq are reasonably solid, they will be better as the company emerges removing uncertainty about business continuity. Lastly as we get a new management team, focused on shareholder profitability, all of the right things will fall into place.
THAT IS WAY MORE THAN A 1MM DOLLAR QUESTION MY BROTHER
THANKS FOR THE INFO. THIS IS MY FIRST FORAY INTO THE MAGICAL WORLD OF Q'S WHO THEN IS CONSISTENTLY ON THE BID? THIS THING TRADES 1MM + /DAY
If you were already involved and planned to take out a company how would you do it? Maybe let all the weak hands get flushed out at the lows and accumulate as much as you can before making your move? If I was running a fund, a competing chemical company or other, thats what I would do. The underlying value is there, this stock is stupid cheap away from the political posturing. Legal proceedings always scare the ^%$# out of me. If you have the capital and are comfortable you can circumvent the legal proceedings this is the right trade.
Have a good weekend and congrats on a better day
IMHO this settlement issue is potentially huge for a number of reasons. Firstly, potential suitors or even investment banks (UBS in the case of the EC proposal) faced a hurdle in the unknown downside of these various claims. To the extent that unknowns are layed to rest, CEMJQ can be evaluated on the strength of the business .
Just kidding on the CMM thing, no offence intended, just trying to interject some humor.
WR
he's just CM now :)
boy, sure is a reasonable amount of volume going through at unchanged prices. That .40 bid has been rock solid for days now
Pardon me Marmaro, didnt mean to be offensive
So what can we do that would be constructive (if anything) Are we simply limited to watching and crossingour fingers?
Any ideas out there?
P.S. Wall you are one smart f...er
just thought I had to say that after reading all your posts
Wall, whats involved with your suggestion below? particularly as it pertains to the Delaware courts? Is there a way that comes to mind about launching a collective effort?
I think the big decline in short interest prior to July 15th means that some fresh money came in on the long side
Me too. 200k + Maybe old news but.
CEMJQ US: Short Positions on 2010/07/15 122,801 -540,591
2010-07-27 00:52:58.669 GMT
Chemtura Corp. ("CEMJQ-0")
- Short Positions on 2010/07/15 122,801 -540,591
//st
Net Total Last Total Price
Date Change Shorted Price Volume Range
----------------------------------------------------------------------------
2010/07/15 -540,591 122,801 - - - - -
2010/06/30 -2,925,138 663,392 - - - - -
2010/06/15 -43,214 3,588,530 - - - - -
2010/05/31 1,273,228 3,631,744 - - - - -
2010/05/15 246,000 2,358,516 - - - - -
2010/04/30 -162,357 2,112,516 - - - - -
2010/04/15 139,654 2,274,873 - - - - -
2010/03/31 -466,045 2,135,219 - - - - -
//et
Most Influential Lawyers of the Decade: Jay Goffman of Skadden, Arps, Slate, Meagher & Flom.
This isnt over