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Lol the national college football championship game is playing in town the night before the proposed hearing date so they are concerned about availability of flights and hotel rooms so they are moving the hearing to January 23rd.
The first round investors are footing the bill for certain distributions that are needed per the plan in exchange for stock.
Confirmation hearing is delayed to 1/14/20. They received first round investors (“FRI”) and need the time to walk the lead investor through due diligence which they feel can be accomplished within 60 days.
Not sure that it matters. They offered to withdraw their modified objection based on a few contingencies but they still have their original objection. 11/13 is the next hearing so we will just have to wait to see how it shakes out.
If the objection gets resolved by this time .... next date for potential confirmation is 11/13/19.
Confirmation hearing has been cancelled. There is now a status hearing scheduled for 10/1.
Looks like the treasury and debtor are trying to resolve their dispute. Per the order, if they come to an agreement then confirmation hearing will proceed on 9/6. If they don’t come to an agreement the hearing will be postponed to 10/1.
Just guessing but a delay of only two days seems like they may have a deal already or be close to a deal. At the very least they’re really trying to resolve it.
Per the disclosure statement, preferred and equity remain unaltered after plan confirmation. You’re thinking of it as a liquidation where priority classes have to be paid off first in order for commons to receive a payout. Yes it is rare for commons to get paid out in a liquidation but it does happen. This is not a liquidation though. I think the real question is what will happen to the company post confirmation.
The description might be longer than the order itself. Confirmation hearing moved to 9/4.
I read the order. Nothing interesting... says exactly what the description says. 8/28 hearing is now a status hearing instead of a confirmation hearing.
This is between the federal government and an individual so good news is that this should not slow down the BK proceeding.
Nah I wasn’t following wamuq. I could read back on it but honestly it’s a lot of work and cost money to get all the docs. Also payouts are not typically posted unless someone volunteers the info so even if you read through it all, you may not know what happened. I’m content to see how it plays out here. The plan currently preserves commons so hopefully that doesn’t change but we’ll see how the judge rules on the objection.
Doc 669 - This one looks to be a little more serious. The US treasury is indicating the plan should not be confirmed because it violates the absolute priority rule. Apparently they are the beneficiaries of the series D preferred equity. Basically they are saying equity should not receive anything until it’s paid out and debtor doesn’t have the funds to pay them out.
Doc 672 - IRS is asking the court not to make any determination that would bind the IRS re the 365m net operating loss.
The court is delaying confirmation of the plan to the next hearing on August 28.
Wow, I’m a little surprised the judge denied the request but I guess that’s good for us since it minimizes the delay. Now we just need to wait to see what happens in the next hearing.
I copy and pasted an excerpt from the motion (doc 675). They essentially said plan is largely intact but needs a few changes. They are asking for a delay until about 8/22.
Doc 676 - it looks like the classes who could vote, voted to accept the Plan.
From Doc 675:
While the general structure of the Plan remains intact and the treatment of claims and
interests will not change, certain issues have recently been presented to the Debtor which now require some changes to the details of the underlying deal structure of the Joint Plan. The Debtor is working through those details with all parties in interest; however, additional time is needed to finalize the changes and secure final approval from those parties. The Plan Proponents maintain that a brief continuance of the Confirmation Hearing is thus needed in order to obtain the approvals necessary to demonstrate feasibility of the Joint Plan.
4.
The Plan Proponents aver that the brief continuance requested will not result in prejudice
to any party, and will instead facilitate plan confirmation and distribution to creditors. 5.
Through counsel, both the FDIC-R and the Office of the United States Trustee have advised the Debtor that they have no objection to the relief sought herein.
WHEREFORE, the Debtor and Committee pray that this Court continue hearing on confirmation of the Joint Plan for a time convenient to this Court, but no less than 15 days from the current hearing date of August 7, 2019; and, for any such other relief deemed equitable and just.
It’s just a waiting game at this point.
Thanks for the heads up. I looked at one of the motions and it didn’t seem like it was a big deal. Debtor appears to be asking the court to make a determination regarding how to classify a claim.
If the plan is accepted the company is going to reorganize. Our shares will be reissued to all of the same common holders. Not sure on timing but first we need the plan to be confirmed.
They are now soliciting votes for the plan this month. They set 8/7 as the date for the hearing. Next step is for the plan to be confirmed hopefully on 8/7.
I pulled those numbers from the disclosure statement/plan that was filed today. Not sure why the discrepancy but maybe b/c they disposed of some of those assets via the litigation or settlements. But... not sure we will need to worry about monetizing the NOLs or tax credits if the plan is confirmed. If things play out the way I am hoping we will not be disappointed.
$365M in NOLs
$147M in tax credits
New disclosure statement will be filed by 7/1. This is very fast since it’s less than one business day. Sounds like it will get approved shortly.
Two objections came in this past Tuesday. Fnbcq responded to one objection indicating it already addressed the issue and proposed to add language to address the other objection. Hopefully the judge will accept and approve the disclosure statement today but, if not, then we will just have to wait for the next hearing.
Yes I saw that. Thank you. I skimmed it when it came out and took a little time this morning to read through it. Looks like 6/28 is the next hearing date and they will hopefully approve it then. These proceedings always take longer than you think though so you need to be very patient and hope that the payoff is insane.
The disclosure statement as currently written indicates that a failure to vote by a class on approval is deemed acceptance. The US Trustee objected to this language. This is known as a “Ruti Sweetwater” provision. The Judge agreed and asked that this provision be removed from the disclosure statement. In other words, under the revised doc a failure to vote is deemed to be a vote against for classes eligible to vote.
New disclosure statement with the revisions is required to be filed by 6/21. The hearing is scheduled for 6/28.
Nothing going on in that BK
What makes you think the plan will be thrown out in favor of liquidation? I haven’t read anything on the docket to indicate that is the case. Provide some backup please.
Next short term date/event to look out for is 6/12. That is the current date for the hearing on approval of the amended disclosure statement.
That would be fantastic but need to temper expectations without proof. If you’re interested you can read the latest motion on the docket for some background (link below). It looks like they set aside about .005 per share for equity (probably less when everything is settled). Also, equity gets share of litigation proceeds after unsecured and loans are paid off. Litigation can take years to resolve and no guarantee that there will be something left for equity but the fact that they already carved out some money for equity is a good sign.
https://cases.primeclerk.com/Synergy/Home-DownloadPDF?id1=MTEwNzcwNA==&id2=0
Another small distribution will be coming up in a few months. They decided to drop the last lawsuit so they will be distributing the remainder of the assets.
Agreed! Investing in public partnerships can get complicated come tax time. Not to mention that they send you the k-1 form after you’ve already probably prepared your tax return. Your standard accountant may not have the expertise to handle.
It may be due to the settlement regarding the plan changes between various parties including the equity committee, debtor, creditors committee etc. Check out page 8 of the doc. Seems to indicate they carved out a little money for equity.
https://cases.primeclerk.com/Synergy/Home-DownloadPDF?id1=MTA5Mjc3Ng==&id2=0
#1. Partnerships are pass-throughs. They don’t pay corporate income tax. Instead, they pass through profits and losses to you the partner. Your share of the taxable income flows onto your 1040 whether or not you get any cash income from the company.
https://www.google.com/amp/s/www.forbes.com/sites/baldwin/2018/02/14/2018-tax-guide-to-mlps/amp/
The K-1 form is issued for limited partnerships. LPs pass along their income/loss to their shareholders. This is not your loss or your gain on the stock trade itself. The loss is the the LPs loss.
Yes looks like they shut down the common stock. Common stock is now relying on the equity committee to find value for commons. There was mention of there being potential value in one of their recent motions or replies, but it will take a very long time for them to settle everything.
Mercuria is the stalking horse bidder. All secured debt is being taken care of with their bid. $40m cash additional for unsecured and the litigation proceeds go to unsecured. Equity gets the remainder as long as debt is paid off.
Is interest in this stock dying down? I saw that they just appointed an official committee of equity security holders.
https://cases.primeclerk.com/Synergy/Home-DownloadPDF?id1=MTA1MjkyNQ==&id2=0