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NATURE OF CLAIMS HELD BY THE AD HOC COMMITTEE
2. As noted above, the members of the Ad Hoc Committee collectively hold more than $770 million of the Debtors’ outstanding debt obligations. Most of this debt arises from
(i) those certain 7% senior unsecured notes due July 15, 2009 issued by Great Lakes Chemical Corp. (the “2009 Notes”), (ii) those certain 6.875% senior unsecured notes due June 1, 2016
issued by Chemtura Corporation (the “2016 Notes”), and (iii) those certain 6.875% senior unsecured notes due February 1, 2026 issued by Chemtura Corporation (the “2026 Notes,” and
collectively with the 2009 Notes and the 2016 Notes, the “Notes”). As of the date of this Statement, members of the Ad Hoc Committee collectively hold or represent approximately 67% of the obligations owing under the 2016 Notes, approximately 62%
of the obligations owing under the 2009 Notes, and approximately 62% of the obligations owing under the 2026 Notes. The amount and circumstances of the holdings of each member of the Ad
Hoc Committee are set forth on Schedules A to BB attached hereto, respectively.
http://www.kccllc.net/documents/0911233/0911233100611000000000007.pdf
Ad Hoc Bondholders report they own 3,497120 shares of stock and are short 566,000 shares.
1798 Global Partners (USA) Corp.$ 6,000,000 + short positions
Brencourt Credit Opportunities Master, Ltd. $ 3,500,000
The Catalyst Credit Opportunity Master Fund, Ltd.$4,000,000
Chimney Rock Value Fund, L.P. $5,000,000
Citigroup Distressed Trading Desk1Citigroup Global Markets Inc.
Total Member Holdings: $62,972,222 + 340,200 common shares
Credit Distressed Blue Line Master Fund, Ltd. $54,760,000
Cyrus Capital Partners, L.P. $72,000,000 + short positions
Gruss Global Investors Master Fund: $30,598,000
Jefferies High Yield Trading, LLC $19,095,633
Knighthead Master Fund, LP $43,949,400 + Short Positions
KS Capital Partners, L.P $2,550,000
KS International, Inc. $2,450,000
Latigo Partners, L.P. $9,000,000
Longacre Fund Management, LLC $12,864,847.64 + 34,420 shares
LMA SPC for and on behalf of MAP84 Segregated Portfolio c/o Knighthead Capital Management, LLC$3,079,600 + Short Positions
Marathon Asset Management $28,855,000
OCP Investment Trust: $6,638,414
Onex Debt Opportunity Fund, Ltd. $13,334,830
Par-Four Investment Management LLC: $21,125,000 + 210,000 shares
Redwood Master Fund $52,024,322
Scoggin Capital: $29,150,000
Senator Investment Group LP: $39,000,000
Seneca Capital Investments, LP (on behalf of affiliated funds) Total Member Holdings: $28,000,000 + 912,500 shares
Silver Lake Credit Fund, L.P. $15,000,000
TPG Opportunity Fund I, LP $29,500,000 + 1,500,000 shares
Tricadia Capital Management LLC $20,000,000 + 500,000 shares
Värde Partners, L.P. (as General Partner of the Värde funds)
Total Member Holdings: $44,120,000
York Capital Management L.P. $116,113,158
EC response to the request for an extension
Statement with Respect to the Motion
1. By the Motion, the debtors and debtors-in-possession in the Chapter 11 Cases (the "Debtors") seek entry of an order extending by 99 days the exclusive periods during which only the Debtors may file a chapter 11 plan of reorganization and solicit acceptances thereof. Specifically, the Motion seeks to (a) extend the exclusive period to file a chapter 11 plan (the "Exclusive Filing Period") for each of the Debtors through and including September 18, 2010 and (b) extend the exclusive period to solicit acceptances of a chapter 11 plan (together
with the Exclusive Filing Period, the "Exclusive Periods") for each of the Debtors through and including November 17, 2010.
2. As the Equity Committee has repeatedly made clear, the Committee is committed to pursuing the best possible result in the Chapter 11 Cases – namely, a reorganization that appropriately finances the Debtors' businesses and maximizes value for all stakeholders, including equity security holders. The Equity Committee further believes that there is significant value that can and should be preserved for existing equity holders.
3. The Debtors have publicly stated that they intend to file a plan of reorganization by June 17, 2010. See Press Release, "Chemtura Comments on the Status of the
Development of its Plan of Reorganization," May 25, 2010. The Equity Committee hopes that, consistent with their fiduciary duties, the Debtors will pursue a plan of reorganization that
maximizes the value of their estates and provides to equity holders the value that is rightfully 1 Although establishing June 10, 2010 at 4:00 pm (ET) as the objection deadline with respect to the Motion, the Debtors agreed to extend the deadline for the Equity Committee to June 11, 2010 at 11:59 pm (ET).
The Equity Committee stands ready to work with the Debtors in pursuing such a plan. By contrast, the Debtors' pursuit of a contrary plan of reorganization that fails to provide
appropriate value to equity holders would breach the directors' fiduciary duties and would be vigorously opposed by the Equity Committee. 4. The Equity Committee does not presently object to the relief sought in the Motion. However, the Equity Committee reserves all its rights to seek to terminate the Debtors'
Exclusive Periods for any applicable reason, including if the Debtors choose to pursue a reorganization that fails to maximize value.
Dated: June 11, 2010
SKADDEN, ARPS, SLATE, MEAGHER &
FLOM, LLP
http://www.kccllc.net/documents/0911233/0911233100611000000000002.pdf
STIPULATION AND ORDER ALLOWING THE CLAIM OF RAYTHEON AIRCRAFT CREDIT CORPORATION (docker #812)
The Debtors owed RACC $31,973,795.57 as of 1-5-2010.
In settlement and resolution of all claims of or involving RACC, it shall have anallowed general unsecured claim against Mesa in the aggregate amount of $17,973,795.57 (the“General Unsecured Claim”) on account of RACC’s claims arising under or in connection with the Aircraft Agreements.
They have reduced the debt by 14 million.
Republic reported average occupancy rose 6 % in May.
INDIANAPOLIS (AP) -- Republic Airways Holdings Inc., which operates Frontier Airlines and does regional flying for other carriers, said Thursday its planes were much more crowded than a year ago. The company said traffic rose 116 percent -- more than doubling because of the addition of Frontier, which it bought last year. Paying passengers flew 1.83 billion miles on Republic's planes last month, compared with 851 million miles in May 2009. Capacity doubled -- again reflecting the addition of Frontier -- to 2.24 billion available seat miles. With traffic rising faster than capacity, the company's planes were more full. Average occupancy rose 6 percentage points to 82 percent in May. Republic is folding Midwest Airlines operations into Frontier. The company also owns Chautauqua Airlines and other carriers that operate regional flights for American, Continental, Delta, United and US Airways.
http://finance.yahoo.com/news/Republic-aircraft-more-apf-2210036004.html?x=0&.v=1
Chemtura has filed for another extension
(a) extend the exclusive period to file a chapter 11 plan (the “Exclusive FilingPeriod”) for each Debtor through and including September 18, 2010 and
(b) extend the exclusive period to solicit acceptances of a chapter 11 plan for eachDebtor (the “Exclusive Solicitation Period,” and, together with the Exclusive Filing Period, the
“Exclusive Periods”) through and including November 17, 2010.
http://www.kccllc.net/documents/0911233/0911233100527000000000009.pdf
Airline shares sent soaring as investors shrug off fears
Figures show growth in fare and passenger revenue for April
U.S. airlines also posted strong unit revenue numbers for April, bolstered by higher ticket prices and increasing international demand.
The NYSE Arca Airline Index /quotes/comstock/10t!xal.x (XAL 35.16, +0.98, +2.87%) rose 2% to 34.91 points with all but three of its 13 components trading higher. But for the week, the sector benchmark stands down about 4.7%.
In volatile trading, the Dow Jones Industrial Index /quotes/comstock/10w!i:dji/delayed (DJIA 10,193, +125.38, +1.25%) climbed nearly 13 points to 10,081 at last check, taking some of the sting out of what's been a loss of about 4.5% for the week. Read Market Snapshot.
Hot Stocks: Financials Lead Way HigherFinancial stocks pace gains in the broader market, rallying after the Senate approved a financial-overhaul package that excluded some amendments seen burdening profits. MarketWatch's Laura Mandaro reports.
Among individual gainers, shares of US Airways Group /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 7.21, +0.37, +5.41%) rose 4.8% to $7.16, AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 6.84, +0.31, +4.75%) added 3.4% to $6.75 and Continental Airlines /quotes/comstock/13*!cal/quotes/nls/cal (CAL 19.45, +0.76, +4.07%) climbed 3.4% to $19.32.
U.S.-listed shares of Gol Linhas /quotes/comstock/13*!gol/quotes/nls/gol (GOL 11.35, +0.08, +0.71%) declined 1.2% to $11.13, Tam SA /quotes/comstock/13*!tam/quotes/nls/tam (TAM 13.51, -0.10, -0.73%) fell 3% to $13.21 as Ryanair Holdings /quotes/comstock/15*!ryaa.y/quotes/nls/ryaay (RYAAY 23.14, -0.07, -0.30%) lost about 1% to $22.94.
Industry data for April compiled by the Air Transport Association showed U.S. airlines chalking up strong growth in airfare and passenger revenue. Average international fares for seven U.S. airlines jumped sharply on the month.
Total system unit revenues rose a better-than-expected 15%, according to Michael Derchin of CRT Capital Group LLC, versus his forecast of a 10% increase.
"We were concerned that unit revenue growth in April would be impacted by tougher comps due to a late Easter travel season last year," he said. "It now appears that underlying revenue strength on the international side offset the tougher comps that mostly impacted the domestic and Latin America services."
The April data comes ahead of the busy summer-travel season as international demand continues to climb.
Trans-Atlantic yield -- or the average price paid to fly one mile, excluding taxes -- rose 23.4% from a year ago to 12.2 cents, while trans-Pacific yield rose 22.1% to 12.34 cents, the Washington, D.C.-based ATA said. Yield on Latin America, routes added 9.3% to 12.77 cents.
Yield on the domestic side also climbed, up 11.5% to 15.06 cents.
Passenger revenue rose 12.5% in April, making it the fourth consecutive month of revenue growth for an industry that looked nearly bankrupt a year ago, ATA said.
"The April jump in passenger revenue is a positive sign, and one showing that the U.S. industry is recovering gradually from last year's severely depressed levels," said ATA President and Chief Executive James May.
"Last year, domestic round-trip fares averaged $28 less than they did a decade earlier," May said in a statement. "In fact, year-ago fares were a staggering $117 short of keeping pace with inflation."
Christopher Hinton is a reporter for MarketWatch based in New York.
http://www.marketwatch.com/story/airline-stocks-soar-shrugging-off-earlier-fears-2010-05-21?siteid=yhoof
Mesa Air Group, Inc. Comments on Recent Court Proceedings
http://finance.yahoo.com/news/Mesa-Air-Group-Inc-Comments-prnews-558019823.html?x=0&.v=1
Quite a list of 5 % owners from page 33 of the DEBTORS’ APPLICATION FOR AN ORDER AUTHORIZING THE EMPLOYMENT AND RETENTION
OF KILPATRICK STOCKTON LLP AS SPECIAL COUNSEL FOR THE DEBTORS AND DEBTORS IN POSSESSION NUNC PRO TUNC TO MARCH 22, 2010
Some of them may no longer be 5 % owners like barclays, FMR, unless they bought back in. But Midwood is a new name.
5% Shareholders
Barclays Global Investors NA
FMR LLC
Heartland Advisors Inc.
ICC Capital Management
Midwood Holdings, LLC
Midwood, LP
Nasgovitz, William J.
Strategic Value Partners, LLC
Strategic Value Special Situations
Master Fund, L.P.
SVP Special Situations LLC
Victor Khosla
http://www.kccllc.net/documents/0911233/0911233100517000000000007.pdf
Skywest has played this game before with express jet. The majors put pressure on by changing the code share, then skywest tries to pickup the losing player on the cheap. The only question is how much they will have to pay to get mesa.
http://crankyflier.com/2008/04/28/428-skywest-and-continental-put-the-screws-to-expressjet/
They also spent 4.706 million on repaying long term borrowing and 3.324 million on capital expenditures. Those numbers are a huge plus.
That statement gives a clue to the alternate POR which will be filed by the equity committee.
"We've already told the debtors' management that we're highly confident that we can refinance the entire capital structure, preserving the equity"
Yes it is important for the Judge to see that Chemtura has not exercised good judgement in how they treat stakeholders.
Does not appear the Judge was pleased by Chemtura's greed. He has on his own granted the Uniroyal retirees a chance to rearument their motion for a stay which he denied yesterday. As part of his argument he stated
"If the Debtors could afford to pay over $1 million per month in incentive compensation to their most senior executives, opposing counsel could be heard to argue that the Debtors’ claims of
prejudice by paying $160,000 per month in retiree health benefits during the pendency of an appeal would ring hollow.
Likewise, the Court had been told one day earlier that the Debtors had over $260 million in EBITDA last year, and, by the Equity Committee, that there was sufficient value in this case to make a distribution to Equity. These matters too were not
addressed in yesterday’s hearing, and, once more, the Court failed to consider them."
http://www.kccllc.net/documents/0911233/0911233100421000000000002.pdf
Chemtura to settle securities lawsuit. Chemtura's insurance will pay out 11.4 million dollars.
5. In August 2006, the Lead Plaintiffs, Chemtura and the other co-defendants(together, the “Parties”) entered into mediation before Judge Daniel Weinstein. Following themediation and continued telephonic negotiations, the Parties agreed to settle the Securities Action for the payment of $20,650,000 (the “Original Settlement Amount”) under the terms of the Prepetition Settlement.
10. Pursuant to the Settlement Stipulation, the defendants have paid $11,357,500 (the “Settlement Amount”) from Chemtura’s insurance into an interest-bearing account (the “Escrow Account”) established on behalf of Lead Plaintiffs and the members of the Class.
Co-Lead Counsel to the Lead Plaintiffs and the Class will
withdraw with prejudice Proof of Claim Number 10757 filed against Chemtura asserting an unsecured secured claim for $9,292,500 based upon the return of the Prepetition Transfers, Proof
of Claim Number 10766 in an unliquidated amount and, on behalf of William Ashe, Proof of Claim Number 10833 filed against Chemtura in the amount of $1,007,582.97.
http://www.kccllc.net/documents/0911233/0911233100416000000000007.pdf
blockbuster bond
The 2012 bond is priced at 24. If you want to make money buy the bond
http://cxa.marketwatch.com/finra/BondCenter/AdvancedScreener.aspx
I do not own this stock and I will not buy any until it is in bankruptcy. I do not trust the CEO.
There is another reason you delay the annual meeting. It allows you time to complete your bankruptcy filling. And once you are in bankrupty you do not have to have an annual meeting and listen to all the angry shareholders (Gregory Meyer). Never under estimate the ego of a CEO. There is nothing they hate more than an outsider telling them how to run their company.
This appears to be an attempt by CERT to use congress to go around the BK judge.
e. communications with nonprofit organizations concerning potential health, safety,or environmental effects of chemicals used as flame retardants.
The unsecured bond (2026) is now at 89.75 and the unsecured debt is going for $0.70 to $0.80 cents on the dollar (M. L. Smith document page 9). "It is M.L. Smith’s understanding that claims agents are paying between $.70 and $.80 on the dollar for general unsecured claims in the within matter."
http://cxa.marketwatch.com/finra/BondCenter/BondDetail.aspx?ID=OTc3Mzg1QUs5
http://www.kccllc.net/documents/0911233/0911233100415000000000006.pdf
Before the Crompton bought Great Lakes, Deas Sea bromine (DSB) was very interested in the bromine business. They also have a joint venture with DSB.
"A 50-50 joint venture between Great Lakes and DSB planned to come
on-stream during 1996 to manufacture a flame retardant used
primarily in epoxy circuit board production and other resin
applications. The $22 million flame retardant plant at Ramat
planned to reach capacity by 1998. Each partner of the joint
venture, called Tetrabrom Technologies Ltd., will market the
product separately."
http://minerals.usgs.gov/minerals/pubs/commodity/bromine/130495.pdf
Do we have new 5 % owners? On March 25, 2010 they served the final order for stock transfer (docket 322) to six firms for subsequent distribution to beneficial owners of common stock in excess of 5 million shares.
If we do, it is a neat trick to avoid identifing who is buying stock. You send the notice to the broker and have them forward it to the client.
http://www.kccllc.net/documents/0911233/0911233100329000000000005.pdf
Chemtura has joined the Official Committee of Unsecured Creditorsof Chemtura Corporation, in objecting to the proofs of claim filed by the Counsel for Education and Research on Toxics (“CERT”)
http://www.kccllc.net/documents/0911233/0911233100322000000000050.pdf
Based on the July 21 date, Chemtura will need to ask for another extension of the exclusivity period. With all the delays we will not exit BK until 2011.
Insider ownership is 0.1 %.
Why buy this company when the MOR shows there is no stockholder equity?
http://www.dailyfinance.com/company/visteon-corporation/vstnq/nao/institutional-ownership
If you read the motion from Fiduciary Counselors you will note that the 401K still holds 7 million shares of stock (page 2).
http://www.kccllc.net/documents/0911233/0911233100302000000000018.pdf
In BK they do not have to file annual or quarterly reports, only the MORs which do not reflect the true value of the company.
It looks like they are not going to file any more 10Ks while in BK.
MESAQ is better than CEMJQ in several areas.
1. MESA did not need any DIP financing.
2. They have minimal bond debt (26 million)
3. In addition to preserving NOLs they have the additional need to preserve equity in that any change in control would result in the loss of code-share agreements (court document #11)
Short Interest has jumped. Could get interesting when the 10K comes out.
Chemtura Corp $ 1.22
CEMJQ -0.12
Short Interest (Shares Short) 3,034,200
Days To Cover (Short Interest Ratio) 1.0
Short Percent of Float 1.26 %
Short Interest - Prior 283,200
Short % Increase / Decrease 971.40 %
Short Squeeze Ranking™ 2
http://shortsqueeze.com/?symbol=cemjq&submit=Short+Quote%99
Request for new extension to file POR. June 11 2010. Looks like they will not exit BK in the summer of 2010.
http://www.kccllc.net/documents/0911233/0911233100204000000000016.pdf
Short interest as of Dec 31, 2009, 299,355, -45.83 %
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=cemjq#getInsiderTrans
Its ammonium sulfate.
http://www.newfiresolutions.com/MSDS_AF21.pdf
The claim BP withdrew was for 4.83 million dollars
The 2026 bond closed at 87.25. Bonds are starting to look like Pilgrims Pride did before their deal was announced.
http://cxa.marketwatch.com/finra/BondCenter/QuickScreener.aspx?ShowResult=true&BondType=Corporate&Symbol=cemjq&YieldMin=&YieldMax=&CouponMin=&CouponMax=&MaturityMin=&MaturityMax=
"In its bankruptcy filing, Mesa listed $975.5 million in assets and $868.6 million in debts. Mesa and 10 affiliates were included in the petition."
Net assets are 106.9 million.
shares oustanding 146.61
book value 0.73/share
Plus enough cash on hand that they require no DIP loan.
Bonds are moving up again.
2009 bond 107
2016 bond 108.5
http://cxa.marketwatch.com/finra/BondCenter/QuickScreener.aspx?ShowResult=true&BondType=Corporate&Symbol=cemjq&YieldMin=&YieldMax=&CouponMin=&CouponMax=&MaturityMin=&MaturityMax=
Good article on MESA
http://www.mauinews.com/page/content.detail/id/527382.html
Mesa files court document concerning trading in stock (equity). Appears they do not want anyone buying to much stock.
Docket # 41
http://chap11.epiqsystems.com/docket/docketlist.aspx?pk=318e1330-365b-447e-a069-338cfb359ba2
Appears they are concerned someone may try to buy the company out.