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This market is making me feel like a hemophiliac at a vampire convention. Still like ACLS here . I talked to IR yesterday and am expecting a call back today with answers to a couple questions.
Just gotta be patient here- Our buddies bought lots more this week and while they're buying the stock won't fluctuate too much. There is no such thing as "free money" but this stock is very close to that. imo
I'm up to 77k shares- looking for more- [was hoping for a dip]
Good luck!
Can't pm but this board is pretty dead. AVGN basically is being forced to find a buyer or liquidate by the big holders. I think by end of December there will be a resolution [if not sooner]. and likely the company will be liquidated . ACLS turned down $6/share from Sumitomo corp and later Sumitomo called of a partnership offer- I figure there may be ongoing talks and maybe with the market conditions at present
a new deal is possible- [ maybe at $2-3shr] .
Happy to help! I've been trying to focus on stocks with rising or stable insider and/or institutional buying . ACLS really fits the bill . I've been accumulating since .44 and have more than a prudent person probally should have in this market.
I also like CVGI and AVGN for the same reasons- AVGN has incredible institutional buying the last 3 weeks-- [over 8 million shares] and has cash liquidation value of around $1.50-$2.00/shr.
CVGI real nice insider buying but more iffy as far as a quick turnaround with the economy as weak as it .
Insiders today exersised their options at .70 625,000 shares bought. I think with the insiders fully loaded we'll see what makes them so confident in this crazy market.
SSCC something wicked this way comes?
Even more insider buys! 25k @ .58 filed yesterday. Gee for a company that needs to find financing by January there is an awful lot of optimism by the upper management . Wonder what they know that the street hasn't figured out yet? [ except for apparently Vanguard ]. I'm betting on Sumitomo buying or partnering with them, or maybe a new suitor has expressed interest. I'll follow the insiders here and hopefully be rewarded.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5977971
More buys filed after the bell- almost 8,250,000 shares now held and being bought at ever increasing price points. Swim with the whale here and be greatly rewarded!
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5977137
SSCC where's the bottom? New low and still falling.
luck or good instinct- either way nj!
Apex Capital Llc New 500k holder .
http://www.mffais.com/avgn.html
Vanguard added 3,538,696 shares.
Follow the money.
http://www.mffais.com/acls.html
Check out the insider buys since November-
http://www.secform4.com/insider-trading/1113232.htm
Great sign in this kind of market.
Even more buying last week - filed last night. Looks like we'll stay in the .70's range until they are done accumulating. The move to $1.plus will likely occur in one day.
http://www.secform4.com/insider-trading/932903.htm
GGP= possible BK-- might bounce-- or might not.
Nice insider buys Friday after the close.
ACLS -- ya think a buyout is on the way-- up .20
ACLS up another dime today- err .16 boing
Going to go here [ bigly]... only question is it a technical bounce or a Sumitomo buyout?
I've had a good til cancel bid for 50k at .005 for a few months and they skipped me down to .001 and then bounced up to get me at .005 after that. Weird stuff.
ACLS former bouncer... WOW
Been basing very nicely off the lows ... gonna go soon!
Wonder if there's new buyout offer in the works?
Looks good for a run to $1.00 or so- good luck here!
yep---- looks good to me !!!
Actually this one is ammended- The big holders are calling for AVGN to liquidate or sell ASAP. They figure the shareholder value at liquidation will be $1.50-$2.00/shr.
Something's gotta give here imo.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5948907
ITEM 4. Purpose of Transaction
At the invitation of the Chairman of the Issuer, the Reporting Persons articulated their views regarding the future of the Company in a conference call with the Board of Directors held on October 30, 2008. The Reporting Persons stated their strong belief that the Issuer should immediately reduce its expenses to as low a level as possible, partner or sell its remaining assets without further investment and take actions to distribute to the Issuer's stockholders as much of the resulting cash as possible. The Issuer reported $56 million, or $1.88 per share, of financial assets as of September 30, 2008, consisting of cash, cash equivalents, available-for-sale securities and restricted investments.
The Reporting Persons informed the Board of Directors that they think that the previously announced plan of spending the Issuer's remaining cash on the development of its early-stage pain drug, AV411 as well as the Issuer's corporate infrastructure is fundamentally flawed, especially in light of the current environment for raising additional capital. The Reporting Persons believe that AV-411 is a high risk drug candidate that is best developed (if at all) by a larger company with greater financial resources and a lower cost of capital. By the time AV-411 could be commercialized, or even definitively proven safe and efficacious, the Issuer's existing cash resources would be depleted. The Reporting Persons believe that the investment community clearly lacks confidence in such a plan, as evidenced by recent reports from stock analysts and by the $0.61 per share closing price of the Issuer's common stock on October 30, 2008, reflecting only 31% of the Issuer's financial assets as of September 30, 2008.
The Reporting Persons intend to work with the Issuer's Board of Directors to effecuate a prompt return of cash to the Issuer's stockholders and intend to bring the matter directly to a vote of stockholders if their efforts with the Board of Directors are unsuccessful.
ITEM 5. Interest in Securities of the Issuer
The Reporting Persons’ percentage ownership of Common Stock is based on 29,769,115 shares being outstanding.
(a) As of October 23, 2008, BVF beneficially owns 1,837,440 shares of Common Stock, BVF2 beneficially owns 1,268,911 shares of Common Stock, BVLLC beneficially owns 4,622,764 shares of Common Stock, ILL10 beneficially owns 472,585 shares of Common Stock and each of Partners and BVF Inc. may be deemed to beneficially own 8,201,700 shares of Common Stock, representing percentage ownership of approximately 6.17%, 4.26%, 15.53%, 1.59% and 27.55%, respectively
Another filing on AVGN and ACLS is sneaking up- [ maybe Sumitomo going to make another bid?}.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5948907
Hmmm getting even more interesting here...
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=5948907
Looks like Deerfield Private Design International, L.P. was the big dumper here and they look to be done[ over 4 million shares at around .25/shr- from their over $5.00/shr entry price- ouch!]. DVAX has lots of cash. Wonder who's going to buy them?
yes
Avigen Reports Third Quarter 2008 Financial Results
Last update: 8:00 a.m. EDT Oct. 28, 2008
ALAMEDA, Calif., Oct 28, 2008 (GlobeNewswire via COMTEX) -- Avigen, Inc. (AVGN:Avigen Inc
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Last: 0.570.000.00%
3:58pm 10/27/2008
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Financials
Sponsored by:
AVGN 0.57, 0.00, 0.0%) , a biopharmaceutical company innovating therapeutics for neurological care, today reported financial results for its third quarter ended September 30, 2008. At September 30, 2008, Avigen had approximately $56 million in financial assets, including cash, cash equivalents, and available-for-sale securities and restricted investments, compared with approximately $78 million at December 31, 2007. More complete financial results are detailed in the financial tables below.
"Last week, we reported the top-line data from our AV650 trial for the treatment of spasticity in patients with multiple sclerosis did not meet its primary endpoint," stated Kenneth Chahine, Ph.D., J.D., Avigen's President and Chief Executive Officer. "We are very disappointed in the result but have a high degree of confidence in the trial design and quality of the data. While we still have a significant amount of data to review, we will discontinue all AV650-related activities and re-focus our efforts on the clinical development of our AV411 program.
"AV411 is a novel glial activation inhibitor with promise in a number of indications, including as a non-opiate treatment for opioid dependence and withdrawal, as well as neuropathic pain. We recently initiated an exploratory study of AV411 for the treatment of opioid withdrawal symptoms, which is largely funded by the National Institute on Drug Abuse, and will be run jointly at the New York State Psychiatric Institute and Columbia University. We also intend to initiate a definitive Phase 2b study to assess the potential of AV411 in neuropathic pain in early 2009."
AVIGEN HIGHLIGHTS
* Announced AV650 did not meet the primary endpoint in the Phase 2b
Clinical trial for spasticity in patients with multiple sclerosis
(as reported October 21, 2008)
* Initiated AV411 opioid withdrawal trial in partnership with NIDA,
Columbia University and the New York State Psychiatric Institute
(as reported October 15, 2008)
* Hosted Research Day whereby management and key opinion leaders
reviewed the Company's product pipeline and development strategy
(webcast archived at www.avigen.com)
Financial Results
Avigen reported a net loss of $9.4 million, or $0.32 per share, for the quarter ended September 30, 2008, compared to a net loss of $6.8 million, or $0.23 per share, for the quarter ended September 30, 2007. For the nine months ended September 30, 2008 and 2007, Avigen reported a net loss of $24.2 million, or $0.81 per share, and $18.4 million, or $0.67 per share, respectively.
Avigen maintains a portfolio of marketable securities with very conservative investment objectives that focus on preservation of principal, liquidity, and maximum total return. As of September 30, 2008, this portfolio primarily included federal agency obligations, high-quality, short-term asset-backed securities, money market-eligible securities, and approximately twelve percent in corporate debt securities. Avigen does not invest in auction rate securities. As of September 30, 2008, the portfolio carried an unrealized loss of approximately $112,000, or less than one-half of one percent.
Third Quarter Results
Research and development expenses for the quarters ended September 30, 2008 and 2007 were $5.7 million and $6.0 million, respectively. Research and development expenses in the third quarter of 2008 included approximately $2.8 million in external costs associated with our clinical trials, primarily related to the two Phase 2 trials for AV650, and $1.1 million in external costs for ongoing preclinical activities across all our programs.
General and administrative expenses for the quarters ended September 30, 2008 and 2007 were $1.8 million and $2.0 million, respectively, and were in line with management's focus on controlling overhead costs and directing more resources toward research and development activities.
In-license fees during the quarter ended September 30, 2008 represented $2.5 million paid under the terms of an expanded development agreement between Avigen and Sanochemia Pharmazeutika AG in connection with the completion of a development-based milestone for the development of a proprietary, purer form of AV650.
Net interest income and other expenses were $526,000 and $961,000 for the three-month periods ended September 30, 2008 and 2007, respectively. This decrease primarily reflects the decrease in outstanding interest-bearing cash and securities balances and the general decline in market interest rates that have led to a lower average yield earned on the portfolio in the 2008 period.
Nine-Month Results
Research and development expenses for the nine months ended September 30, 2008 and 2007 were $17.8 million and $15.1 million, respectively. During the first nine months of 2008, research and development expenses included approximately $8.1 million in external costs associated with our clinical trials and approximately $3.4 million in external costs associated with ongoing preclinical activities.
General and administrative expenses for both nine-month periods ended September 30, 2008 and 2007 were $6.4 million.
In-license fees for the nine months ended September 30, 2008 were $2.5 million. There were no in-license fees for the same period in 2007.
Net interest income and other expenses for the nine months ended September 30, 2008 and 2007 were $2.0 million and $2.6 million, respectively.
Avigen's operating expenses for the nine months ended September 30, 2008 are in line with management's expectations. Subsequent to the end of the third quarter, in connection with the negative results reported for the AV650 Phase 2b clinical trial for spasticity, management announced it will discontinue all AV650-related activities, which will significantly decrease the company's quarterly cash burn from its current level. Management expects to end 2008 with approximately $50 million in financial assets and believes these resources will be able to fund its future operating expenses for approximately two years, as the company shifts its development efforts toward its AV411 program and other in-licensing opportunities.
About Avigen
Avigen is a biopharmaceutical company focused on developing and commercializing small molecule therapeutics to treat serious neurological disorders, including neuropathic pain and opioid addiction and withdrawal. Avigen's strategy is to complete the requirements of clinical development for each of the candidates in its product pipeline, and continue to look for opportunities to expand its pipeline through a combination of internal research, acquisitions, and in-licensing, with the goal of becoming a fully integrated commercial biopharmaceutical company that remains committed to its neurology products. Avigen is currently developing AV411, a novel glial attenuator, with potential utility for neuropathic pain, as well as opioid withdrawal and addiction. Additionally, the company is advancing AV513, a novel therapy for the treatment of multiple bleeding disorders, including hemophilia A and B, toward clinical trials. For more information about Avigen, consult the company's website at www.avigen.com.
The Avigen, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2981
Statement under the Private Securities Litigation Reform Act
The statements in this press release relating to Avigen's expectations regarding the timely and reliable completion of its clinical trials, its expectations regarding discontinuing all AV650-related activities, its expectations regarding shifting the company's focus to the clinical development of its AV411 program, including the initiation of a definitive Phase 2b study for neuropathic pain in early 2009, its expectations regarding the decrease in its future quarterly cash burn levels and how long its financial resources will last, and its goal of becoming a fully integrated commercial biopharmaceutical company remaining committed to its neurology products, are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others, the fact that development of small molecule therapeutics and other therapeutic discovery and development is a time- and resource-intensive process, which may result in the expenditure of a significant amount of time and resources with no progress towards clinical trials or marketable product resulting from the effort; the risk that Avigen will not be able to obtain regulatory approvals for its drug products, which is required prior to marketing drug products; and the risk that early positive preclinical and clinical results will not guarantee that the potential products will ultimately be effective in treating the indications for which they are developed, or exhibit the unique properties they appear to possess. In addition, there are many other risks and uncertainties inherent in the development of drug products. Other risks and uncertainties relating to Avigen are detailed in reports filed by Avigen with the Securities and Exchange Commission, including Avigen's Quarterly Report on Form 10-Q for the period ended June 30, 2008, under the caption "Risks Related to Our Business" in Item 2 of Part I of that report, which was filed with the SEC on August 11, 2008.
AVIGEN, INC.
SELECTED FINANCIAL INFORMATION
STATEMENTS OF OPERATIONS
(In thousands, except shares
and per share information)
(unaudited)
Three months ended Nine months ended
-------------------------------------------------
September 30 September 30 September 30 September 30
2008 2007 2008 2007
-------------------------------------------------
Revenue $ -- $ -- $ -- $ --
Operating
expenses
Research and
development 5,678 5,952 17,841 15,149
General and
administrative 1,848 2,041 6,398 6,377
Impairment loss
related to
long-lived
assets -- -- (274) --
In-license
fees 2,500 -- 2,500 --
-------------------------------------------------
Total operating
expenses 10,026 7,993 26,465 21,526
Loss from
operations (10,026) (7,993) (26,465) (21,526)
Sublease income 97 192 271 523
Net interest
income and
other expense 526 961 2,039 2,570
-------------------------------------------------
Net loss $ (9,403) $ (6,840) $ (24,155) $ (18,433)
=================================================
Basic and
diluted net
loss per
common share $ (0.32) $ (0.23) $ (0.81) $ (0.67)
=================================================
Shares used
in basic and
diluted net
loss per
common share
calculation 29,769,115 29,620,566 29,764,487 27,397,710
=================================================
CONDENSED BALANCE SHEETS September 30 December 31,
2008 2007
-------------------
(In thousands) (unaudited) (1)
Cash, cash equivalents and
available-for-sale securities $ 47,374 $ 68,686
Restricted investments - current 36 428
Accrued interest and other
current assets 915 1,495
-------------------
Total current assets 48,325 70,609
Restricted investments 9,000 9,000
Property and equipment, net 528 1,263
Deposits and other assets 253 197
-------------------
Total assets $ 58,106 $ 81,069
===================
Current liabilities 3,268 3,441
Long-term obligations 7,656 7,796
Stockholders' equity 47,182 69,832
-------------------
Total liabilities and
stockholders' equity $ 58,106 $ 81,069
===================
(1) Derived from audited
financial statements.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Avigen, Inc.
Avigen, Inc.
Michael Coffee, Chief Business Officer
510-748-7372
Fax: 510-748-7155
1301 Harbor Bay Parkway, Alameda, CA 94502
(C) Copyright 2008 GlobeNewswire, Inc. All rights reserved.
Err or this morning... lost .32 share vs consensus estimate of -.35/shr.
I think it's going to be next Monday at 6:pm est [tentatively]
http://finance.aol.com/event/avigen-inc/avgn/nas
Know was a poor choice of words- maybe factor in would've been better. I don't think anyone [ FDIC included] really knew what was left over from the " purchase" and the standard boiler plate response from any BK is that the common are likely wiped out. But my opinion is that when there are deep pocketed investors in the same boat as the common. Somehow deals are struck, bondholders agree to terms , warrants are issued and in WAMUQ'S case we know many parties have a vested interest in WAMUQ'S re-emergence.
BTW I am in no way advocating this stock as a sound investment or a "sure" thing. I like my chances but I'm also not blind to the risks. Good luck to you- having an inquisitive skeptical mind is a big plus in todays market!
FDIC is not calling the shots now. And I'm not making more of anything- just saying I've been through this b4 and I try to follow the money. Thanks for your thoughts!
This is what the FDIC said at the time- not WAMUq. You imboldened the Wamu part but it was actually the FDIC which was quoted. And as I posted b4- it's a whole new ball game with the nearly 4 billion dollars which imo the FDIC was unaware of . As you know there are now lawyers for numerous parties trying to get a better handle on the assets. September 26th speculation is just that- speculation. And as I posted b4 I was in PRGNq and the same things were bandied about by each side, PRGN emerged and the common were not wiped out- even though nearly every "analyst" said they most certainly would be.
By: monkeyfrogdotcom
22 Jan 2003, 08:26 AM EST
Msg. 15265 of 19006
(This msg. is a reply to 15262 by wpb-pbg.)
Jump to msg. #
Peregrine Systems(R) Files Plan of Reorganization and Disclosure Statement
- Full repayment proposed for bondholders, other creditors - Value preserved for shareholders - New board to be appointed for reorganized company
SAN DIEGO, Jan 21, 2003 /PRNewswire-FirstCall via COMTEX/ -- Peregrine Systems, Inc. (OTC: PRGNQ) said today that it filed its Plan of Reorganization and Disclosure Statement on Jan. 20 with the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The Plan offers a blueprint for restructuring the company, including reinstatement of bondholder claims, full repayment of most unsecured debt under extended terms, preservation of value for shareholders, and a proposed resolution of shareholder class action claims.
"Our filing of the Plan and Disclosure Statement reflects significant progress in our Chapter 11 proceeding," said Gary Greenfield, Peregrine's CEO. "The Plan is a fair and reasonable restructuring proposal, and we believe it sets the stage for Peregrine's successful reorganization. It will allow us to maximize the value of assets and distributions to creditors, minimize our expenses and provide sufficient time to pay our debts. We have proposed repaying our bondholder debt in full, as well as most other unsecured creditors, while also preserving a substantial amount of shareholder equity.
"We value the support that we have continued to receive from our customers, partners, employees, vendors and others, who have allowed us to use this process to lay the foundation for our future success," he added. "Completing our reorganization under this Plan will allow Peregrine to move forward as a viable and independent software business."
The Plan also calls for appointing a new, five-member board of directors for the reorganized company. It would consist of four independent directors, as well as the company's CEO. Additional oversight is prescribed to assure independence of individuals nominated. Peregrine intends to ask the court for approval to retain an outside search firm to identify and present nominees for these board positions for appointment by the time the company emerges from Chapter 11.
The Plan and Disclosure Statement were filed in bankruptcy court yesterday within the 120-day period in which Peregrine has the exclusive right to file a Plan. The Official Committee of Unsecured Creditors does not support the Plan at this time and may not elect to do so. The Disclosure Statement requires bankruptcy court approval, and the company hopes that a hearing to consider it could be as soon as February 25.
If the court approves the Disclosure Statement, it will be sent to creditors and equity interests, to the extent that their claims or interests are impaired under the Plan, and the company will commence solicitation of votes for confirmation of the Plan by certain classes of creditors and equity interests. The company hopes that a hearing to consider the Plan's confirmation could be as soon as April 2003.
Most interesting thing here so far is the new dynamic if/when WAMUq gets the neary 4 billion cash. When the FDIC made there statement that the common was not likely to recover anything they did say that the preffered should file a claim.. meaning to me that there was indeed some value left after the takeover. This was the FDIC's opinion before anyone knew about the 4 billion that apparently is still WAMUQ'S.
http://www.fdic.gov/bank/individual/failed/wamu.html#possible_claims
VII. Possible Claims
On September 25, 2008, Washington Mutual was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC as Receiver for Washington Mutual Bank. Claims by preferred stockholders, subordinated debt holders, and unsecured senior debt holders of Washington Mutual Bank were not acquired; these claims, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver of Washington Mutual Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent
The closure and the receivership do not affect the claims by equity, debt holders or other creditors of Washington Mutual, Inc., the holding company for Washington Mutual Bank.
The holders of equity, subordinated and unsecured senior debt in Washington Mutual Bank are creditors of the receivership for Washington Mutual Bank and should file claims in the receivership for recovery of any amounts that may be due to them. Please note that under federal law, 12 U.S.C. § 1821(d)(11), claims by equity and subordinated debt holders are subordinated to claims by general creditors of the institution. At this time, the FDIC as Receiver for Washington Mutual Bank does not anticipate that equity and subordinated debt holders will receive any recovery on their claims.
Preferred stock, subordinated debt, and senior debt holders of Washington Mutual Bank need [/B] to file a claim. [/U]
Note= last updated Setember 26th 2008
Fast forward to this week- If the FDIC thought preffered stock holders and senior debt holders might get paid WITHOUT the 4 billion in assets- looks to me that our deep pocketed fellow common holders will most certainly make a case for everyone getting something.
IMO Buy the preffered if you really want to take a looooong term outlook here, or take a shot at the common which will likely have several "tradeable" events going forward thru the reorganation process.
Insert TPG or any other large holder's name in this letter. And send it to WAMUQ
Here's the text of the letter:
August 5, 2004
Mr. James P. Jenkins
Chairman of the Board
Peregrine Systems, Inc.
3611 Valley Centre Drive
San Diego, California 92130
Dear Mr. Jenkins,
Our firm is the investment manager of two private funds that in the aggregate
own approximately 7% of the common shares of Peregrine Systems Inc. (the
"Company"). For the reasons set forth in this letter, we believe that the Board
of Directors should immediately implement a plan to solicit buyers for either:
1) the assets and business of the company and distribute the existing cash and
sale proceeds to the shareholders or 2) the Company's equity securities.
The Company participates in an increasingly competitive industry in which, we
believe, smaller, independent operators are less likely to succeed over time.
The business software systems segment is especially vulnerable to potential
competitive threats given the continuing consolidation among providers of both
hardware and software solutions. We feel strongly that the interests of the
Company's shareholders will be best served if the Company conducts a
comprehensive sales process that is designed to solicit the highest possible bid
for the assets and business of the Company or its equity securities.
We remind you that as a Director of a public company, your and your fellow
Directors' fiduciary duty is to protect the interests of all shareholders. As we
have mentioned, we believe that the best interests of shareholders will best be
served if a formal sales process is initiated as soon as possible.
Sincerely,
Lampe, Conway & Co., LLC
See you all this evening
On my first glance it appears JPM left quite a bit of meat on the WM carcass. Remember that the largest equity holders are in basically the same boat- [titanic] as joe common shareholder here. In PRGN's case the largest shareholders got a seat on the board and watched nearly every transaction while the company reorganized, eventually the large shareholders forced/ facilitated PRGN's sale to HP.
Yw, more coming- really interesting stuff. Gotta let the deep pocket guys do their thing here- and bring in tow the lowly masses. [ common shareholders and unsecured creditors].
I'm basically going thru a worm hole on Raging Bull to get some info- I was also in PVN which ironically was bought by WM.[ after PVN regained it's footing] I found the old contact info from a guy who worked/works? for PVN/WM/JPM? , may get lucky and he may have current info on who's got what asset wise. Or at least his opinion about what will likely happen. Doing the kids pumpkin patch stuff this afternoon but will post some interesting tid bits about PRGN's accounting problems and Wamuq's asset valuation problems. People can go back to the 2003 posts on raging bull if they are members. Same type of posts then as now with lots of speculation and FUD . But you'll see a clear pattern of those who understood the value after we got our arms around the total situation. Up til this year I made the most money ever with 2002-2003 plays, FNSR,SONS,PVN,PRGN,and HLSH.
Wanted to say that I was in a stock in 2003 peregrine systems [Peregrine filed a voluntary Chapter 11 petition on Sept. 22, 2002 ] Which some of you may remember emerged from chapter 11 without wiping out the shareholders. Stock was trading for pennies also during the Q days [ now around $5.00/shr. Mark Nelson was a big shareholder - A la TPG investor group. There are quite a few simularities to the WM case. In Wamu's case having large shareholders with deep pockets in the same boat as other common shareholders can be a big help. I'll detail some later tonight.
By: monkeyfrogdotcom
22 Jan 2003, 08:26 AM EST
Msg. 15265 of 19006
(This msg. is a reply to 15262 by wpb-pbg.)
Jump to msg. #
Peregrine Systems(R) Files Plan of Reorganization and Disclosure Statement
- Full repayment proposed for bondholders, other creditors - Value preserved for shareholders - New board to be appointed for reorganized company
SAN DIEGO, Jan 21, 2003 /PRNewswire-FirstCall via COMTEX/ -- Peregrine Systems, Inc. (OTC: PRGNQ) said today that it filed its Plan of Reorganization and Disclosure Statement on Jan. 20 with the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The Plan offers a blueprint for restructuring the company, including reinstatement of bondholder claims, full repayment of most unsecured debt under extended terms, preservation of value for shareholders, and a proposed resolution of shareholder class action claims.
"Our filing of the Plan and Disclosure Statement reflects significant progress in our Chapter 11 proceeding," said Gary Greenfield, Peregrine's CEO. "The Plan is a fair and reasonable restructuring proposal, and we believe it sets the stage for Peregrine's successful reorganization. It will allow us to maximize the value of assets and distributions to creditors, minimize our expenses and provide sufficient time to pay our debts. We have proposed repaying our bondholder debt in full, as well as most other unsecured creditors, while also preserving a substantial amount of shareholder equity.
"We value the support that we have continued to receive from our customers, partners, employees, vendors and others, who have allowed us to use this process to lay the foundation for our future success," he added. "Completing our reorganization under this Plan will allow Peregrine to move forward as a viable and independent software business."
The Plan also calls for appointing a new, five-member board of directors for the reorganized company. It would consist of four independent directors, as well as the company's CEO. Additional oversight is prescribed to assure independence of individuals nominated. Peregrine intends to ask the court for approval to retain an outside search firm to identify and present nominees for these board positions for appointment by the time the company emerges from Chapter 11.
The Plan and Disclosure Statement were filed in bankruptcy court yesterday within the 120-day period in which Peregrine has the exclusive right to file a Plan. The Official Committee of Unsecured Creditors does not support the Plan at this time and may not elect to do so. The Disclosure Statement requires bankruptcy court approval, and the company hopes that a hearing to consider it could be as soon as February 25.
If the court approves the Disclosure Statement, it will be sent to creditors and equity interests, to the extent that their claims or interests are impaired under the Plan, and the company will commence solicitation of votes for confirmation of the Plan by certain classes of creditors and equity interests. The company hopes that a hearing to consider the Plan's confirmation could be as soon as April 2003.