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LOL, dawg you the man
But not you dawg huh? What do you think of the Merlin sale? Show us your DD prowess eh?
Again, this paragraph is very telling IMO, as to why these sales are going through.
"Creditors want the most they can get out of GTAT in a PLAN. (POR) They want cash + shares and be able to sell those shares in the short term to INVESTORS, the guys who actually want to own and run companies. They could care less about holding long enough to see Merlin and Hyperion MAYBE bringing profitability to long term reorganized GTAT holders. "
This is why creditors won't object to the sale of Merlin and Hyperion.
I didn't forget about Waaree, or the new san jose facility GTAT rented out just for Merlin, Obviously something happened here that we don''t know.
Do we deserve to know? I think so. Is it illegal to sell Merlin? Naw, thats Chapter 11 for you. But every stakeholder gets more recovery in a POR from these 363 sales. Read my previous post
Maybe Merlin does not have room for improvement like I think Hyperion did:? Dollar for dollar into R+D.
Merlin could just be useless even after all the 2014 + Post bk R+D. Best thing to do would be to sell at a loss.
Plus. it seems that GTAT was not getting a profit from Merlin like they had hoped, and selling it would actually bring more value back to creditors in a POR then if they hold onto it. Why do you think the Creditors did not object to the Hyperion sale?
How I see it, creditors are not in business to own companies, they are in business to sell their products (Trade creditors) and loan out money and receive interest (Bondholders)
They want the most they can get out of GTAT in a PLAN. (POR) They want cash + shares and be able to sell those shares in the short term to INVESTORS, the guys who actually want to own and run companies. They could care less about holding long enough to see Merlin and Hyperion MAYBE bringing profitability to long term reorganized GTAT holders.
Merlin and Hyperion won't be valued for anything based on "Potential" in a POR. They will be valued for what they sold for. (As much as I hate it)
And you know what? They don't have to.
-big boule tech (200+)
-Legacy equipment improvements (GT solar)
-Merlin
-Hyperion
-other.???
GTAT to dispose of Merlin Asset
KCCLLC -
https://www.kccllc.net/gtat/document/1411916151105000000000002
Either GTAT is strictly focusing on its legacy solar business + Sapphire production furnaces, (One could argue that Merlin is not part of the legacy business)
or chapter 7 is next.
Merlin can't be valued at 500 mil or so in a POR if its sold for less, and the way Hyperion sold, I expect it to follow suit..
This is a really silly statement,
Profit taking
Plausible, but now that ASFs are being auctioned, it could pose a threat to the contract. GTAT takes deposits for its PO's though, so I assume at the very worst, GTAT keeps the deposit. (No cancellation clauses)
But the deal for 45 mil worth of furnaces fell through it seems. One of the conditions was that 165kg boules was reliable.
So Apple is releasing GTAT from its debt owed in exchange for 50% of GTATs net proceeds from furnaces that will be auctioned this month.
I can see how this benefits GTAT immensely (especially for creditors in the short term). But I'm wondering, what is in it for Apple? Any guesses? Thought i'de ask on the Apple board, GTATQ board is a little bias for GTAT of course
My only guess is that Apple does not believe it will see the 439 mil over four years of furnace selling, so it is going to get as much cash now and bail
But do you know who the secret buyer is?!?! The heavy hitters looking for those "Hush Hush" docs?!?!?
But but, the secret buyer? the secret docs that the big hitters want? What about that?! This can't be the end, can it, Vrock?!
What about the secret docs vrock? the secrets! what about the big hitters! What about the secret buyer who wants to merge with GTAT? Where they at?!
Only logical reason would be is that Apple knows it won't get its 439 million from furnace sales. (Or at least it will take 4+ years)
In this scenario both Apple and GT walk away with cash now.
This is great for the reorganized GTAT IMO. They will have a very clean balance sheet on emergence. I suspect the only DEBT GTAT will have post BK will be any exit facility loan
You and I are different, you care about gap ups from events such as short selling. I could care less, i'm focused on how shareholders will be treated in a plan of reorganization.
A BK stock going up or down 20%-30% in one day (Or even in 15 minutes) is very standard. Kinda like how the sky is dark at night.
How so? Apple has to scrap the excess furnaces they receive. Scrap value of a furnace is approx 25k according to an 8-k earlier this year.
If Apple wants furnaces, they have to buy them. Which is obviously not the case since they are being auctioned off.
50-100k on average, only a handful selling IMO. If furnace buyers wanted these furnaces, we would have known by now.
That debt was never the problem to equity in the short term. Shareholders worry was always bond + trade + govt debt (And any misc minimal debt)
Apple debt was secured by the ASF's.
How so? This is better for lower class claimholders (Gen. Unsecured, shareholders) then not selling any ASFs in the short term.
We already knew that ASF's were not going to sell mid summer. There just is no market for Sapphire furnaces at this time.
GTAT is in fact actually trying to get as much value back to its creditors before a POR.
I'm not convinced in anyway this will bring back value to the Shareholders. I could however see this allowing GTAT to negotiate amongst creditors and creditors to negotiate amongst themselves.
Something like trade payables paid back in full in cash, and bondholders take control of the company, as opposed to splitting everything up equally.
This is of course just one example of how this could play out.
GTAT to auction ASF's, 50% of auctioned ASFs go to Apple. GTAT will retain some ASFs for future sale, any ASFs not sold will be abandoned at the Mesa facility and transferred to Apple.
Apple will have to scrap the abandoned furnaces, and 50% of the scrap value goes to GTAT.
439 claim is discharged.
Motion on the docket + motion to expedite the hearing also on the docket.
This "Mesa settlement" is pretty good in light of the fact that GTAT can not realize any value for its furnaces. This is an amazing opportunity for new sapphire players to enter the market. I suspect the furnaces (on average) to fetch below 100k each in auction.
That's a pretty good guess. 1.7 mil shares is a lot for one trade
Can probably be explained by the drop in all major coal companies. ACI and BTU are tanking the past few days.
Short term outlook is awful for coal, even oil.
You know Alpha is in Bankruptcy right?
ANR does not have an earnings date planned. I know they want release earnings still according to the BK filing announcement. ANR has monthly statements released for sure though through the bankruptcy court. (around the end of each month, the 26th of September and October were released the 26th)
So if ANR Is releasing a formal 10-q, which they said they would, there is no date yet for the next release.
That is actually really cool. Hoping to see more from that!
RG (terran falloh) on CourtCall for the september hearing.
https://www.kccllc.net/gtat/document/1411916151026000000000002
Again, the business plan is not something anyone should expect to be made public. The business plan was a requirement by the DIP lenders (CITI)
Source? I know its on the bankruptcy docket.
NVM, WSJ and the BK docket.
Neither, in my opinion the case has been made already. We know everything that is going to happen in this chapter 11.
Uh the court is "PO'd" about it because sealed information that was ordered to be heard confidentially was leaked. Those same documents that were leaked showed the judge that an Equity Committee is not warranted.
Nope, sometime next month / early December.
Creditors Like manz and Meyer burger got burned just as hard from this..not just shareholders. Albeit shareholders lost 1.48 billion value filing to date, and creditors as a whole are sitting at around a loss of 1 billion with potential to recover in a POR, while shareholders eat the dust.
It's pretty safe to say, that based on that 10/23 PR, the debtors' reorganization plan took a 180 degree turn after furnaces couldn't sell.
Apple settlement relied heavily on actually being able to sell furnaces.
Alpha insiders own 4% of the company, CEO crutchfield owns the highest amount of that (3 million shares, 1.5% I believe)
Employees (non insiders) could own a decent amount also.
It's in managements best interest to fight for equity..
"Woops my actions caused investors to lose over 75% of their investment in 30 minutes at one point. Sorry, was an accident! Didn't know!" - Person who leaked the sealed information.
Yeah, not gonna fly with the Trustee who oversees the BK, and in fact might even lure in the SEC.
This relates only to the portion of the court hearing to discuss the sealed documents that the Debtors' and the Ad Hoc EC produced for the hearing.
The person who is the target of the investigation leaked information of the sealed documents, for the benefit of trading GTATQ (arguably)
Cause a sorry always works when someone breaks a law / direct order from the court