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Scary stuff if a lawyer/court employee leaked the sealed info...
I think this website is the website the Trustee is saying got the information regarding if the motion was passed or not,
The trustee says there are 2 websites, one that got info on the order, and another that had a clip of the sealed hearing. So IHUB is safe, I think...
Conspiracy theory #1
Why are you so caught up on Hyperion being the viable option for cover screen application??????
If that was even nearly the case, GTAT would not have sold Hyperion. I'm all for GTAT having placed Hyperion assets on hold, for future potential and more investment from the reorganized debtors, but come on. Hyperion isn't the answer for the market right now
You say "they will laminate it to gorilla glass.." Why make such a claim after the fact that Hyperion just sold for 1 million.
I see how you are connecting the "dots" but I'm not buying it one bit. Obviously my opinion, and you have your opinion.
No clue. Doubt it though. Plan negotiation is well underway, the Debtors already have a draft plan. An appeal would take several months. GTAT expects to have a consumnated plan early 2016.
Hyperion sale approved. looks like it is on halt for 15 days incase another bidder comes in? Or until the Ad Hoc committee withdraws its objection.
16. The stays provided for in Bankruptcy Rules 6004(h) and 6006(d) are hereby
waived, and this Order shall be effective immediately upon its entry; provided, however, that
GTAT shall not consummate the sale of the Purchased Assets to Buyer until the 15th calendar
day after entry of this Order, unless GTAT has received written notice from counsel to the Ad
Hoc Committee of Equity Holders stating that the Ad Hoc Committee of Equity Holders is
withdrawing its objection to the Motion, in which case, GTAT shall be free to consummate the
sale of the Purchased Assets to Buyer.
Honestly I don't know what the stock price / market cap will be on open of the reorganized company. Just the way I read it is 500 mil and 3% goes to equity. thats 15 mil or so. aka 50% increase of todays stock price / market cap. (10 mil market cap) + warrants.
That does not mean the stock price of the new open will be 14 cents or whatever. It just means old equity shares will be worth 15 mil instead of 10 million. It could open at 10 dollars or whatever. Net gain would be 50% for old equity.
It sounds to good to be true, so I cant tell for sure.
So 560 debt, company says they are worth about 500 mil..so...1 billion in assets or so?
3 % of the final worth of hercules, is what heroq equity holders get in the consumnation of a plan.
If they are worth 500 mil, thats about 15 mil left for equity holders. or 50% more then what it is now.
But where are you getting that the company is worth 500 mil? I think its going to be less..
So if HERO is valued at that low end of 500 mil**, thats about 16 mil left for Existing equity. so that is 60% higher then the current stock price mkt cap? (10 million)
AKA shares go up 60% instantly at issuance
**where did you get this information?
So new business plans do not require court approval. the DIP lender has to agree to it I think though. I don't think the business plan will be made public though. Does not sound like something Alpha would want competitors to know about.
Hey where are you seeing that hte business plan will be disclosed to the public? Also where did you read that quote?
Just wondering
Yep done
Of course buddy. I will stick around and find any hint of recovery for shareholders. Will buy back in, I really do wish the best for GTAT longs.
Bankruptcy was coming regardless. The timing was on the early side of the spectrum to have some cash for the BK. also GTAT hoped for a favorable outcome from litigation with Apple. Apple settlement is a favorable outcome if furnaces actually a sell (which has not happened in chapter 11)
Once GTAT signed statements of work and accepted Apple funding, GTAT bankruptcy time bomg began. Their solar business was tanking, ASF for led was tanking, ASF for mobile screens business was non-existent due to Apple supplier term, GTAT was just beginning to develop Hyperion and Merlin, Apple essentially bought no sapphire from GTATs sapphire production businessetc, etc. no revenue, huge debt (Apple loan of 439 mil + new bond issuance of 200 mil and trade payables of 140-150 mil just to create equipment to make and fabricate sapphire)
As a company GTAT could have weathered the storm/downturn in the business if they had not signed up with Apple.
GTAT board, management, and advisors expected two things IMO, very early in the case. 1) heightened demand for ASF furnaces since Apple wanted Sapphire (so maybe other phone comps might want sapphire) and 2) A favorable outcome from litigation with Apple (just read the squiller declaration, most BK declarations show a history of why company X declared bankruptcy. GTATs declaration (squiller declaration essentially only talks about Apple and how Apple forced them into bankruptcy.)
As far as we know it, and as the outlook seems, GTAT and the creditors are done litigating with Apple due to the Apple settlement. At the time it seemed like a great settlement, GTAT expected furnaces to sell. Step one of the BK was complete, settle with favorable terms for GTAT stakeholders. Step 2, sell furnaces. Obviously step 2 never came to fruition.
In fact, if Furnaces had sold, GTAT trade creditors could have been paid off (one example), and equity could have had a footing to negotiate with bondholders (The biggest unsecured creditors) for a spot in the reorganized company.
Even GTAT said in their first objection an equity committee that if furnaces had sold, they would review the need for an equity committee themselves! Read their first objection, back in January 2015.
Apple settlement without furnace sales is very bad for equity. With furnace sales it is an amazing settlement. Obviously.
So to say it was a scam from the beginning is sort of a baseless claim.
However how this BK played out, it obviously failed. BIG time. Even for unsecured creditors. But unsecured creditors will be made more then whole after this chapter 11 once they own the new GTAT value (new stock, new bonds, new warrants, etc). Just watch all these furnace sales come in post chapter 11, including large revenue from GTATs solar business in the next few years.
Such is the problem with how Equity is treated in BK cases. shrug..
Please, just because Boroff clarified the obvious, that he was not ruling on a cancellation of a creditor class (aka shareholders, something that can only be done in a confirmed POR) at a hearing to appoint an equity committee, does not mean there is a conspiracy theory going on.
Equity committee appointment and ruling on the cancellation of a creditor class are extremely different situations LOL.
Of course it can be appealed, it will take monthsss before the ruling comes in though
Not like it matters anymore, shrug.
What are you talking about LOL. Please explain what questions we have been waiting to see answered for 10 months. Only important hearings are adversary proceedings as of now, no important motion has been filed that could benefit shareholders except these adversary proceedings.
Your flip flop posts are getting old
How do you propose this? Independent investors willing to give GTAT a gift? Besides that... The idea seems extremely unpracticle without harming shareholders
Look I'm not gonna argue if GTAT has value or not, the court obviously does not think so in the short term. (Aka when it matters for shareholders) but,
From a 30,000 foot view of the DIP loan, it's an amazing opportunity for citi. They get 9.5% interests on 95 million backed by GTATs assets, including 50 million unencumbered cash. ALSO, they got to dictate when maturity is (April essentially) they were given a business plan that shows cash loss estimates up until maturity + more.
From citis point of view, it's an amazing investment. They get first picking rights on the companies assets before anyone else.
Just because they lent out 95 mil does not mean GTAT has value left over for GTAT shareholders due to citi's confidence. Such correlation makes absolutely zero sense. Citis loan is as safe as a loan can get. (I'm not saying all bankruptcy loans are safe, but I firmly believe even lower tier creditors will see value back, and higher tier creditors will be paid in full value at a POR) Super priority claims are massive. They WILL get paid back the full amount + interest due. In CASH. If not, in cash and common stock. And at the very very least, their collateral aka GTATs assets.
No way GTAT defaults on this loan..
Just take a look at the coal industry. It's almost impossible for these major coal companies (Peabody and Arch) to refinance their debt / get new loans. But look what happened with Alpha Natural Resources, they file bankruptcy and get a 300 mil dollar loan from Citi. Why? Probably because alpha has approx. 600 mil unencumbered cash + about 1 billion other CURRENT assets. The dip loan of course is a super priority loan on all of alphas assets. Which is about $8 billion "long term" assets. Coal industry is rocked (No pun intended) at the moment so these long term assets are probably not going to be realized at $8 billion, but the current assets of 1.6 billion including 600 mil cash will fetch 1 to 1.
Oh and what else? Citi also dictated when the company (Alpha) has to have a confirmed plan. (Maturity date)
Just because citi is willing to lend out these loans, does not mean in any way shareholders have value. Again, this post is not me arguing whether GTAT has worth for shareholders or not (or alpha for that matter since I brought it up)
Today, he denied the motion to appoint an Official Equity Committee in GTATs Bankruptcy case.
Thanks for this! Just another reason to avoid marriage boys and girls!
OH MAN. almost 1/4th of his income.
But in all seriousness, yes, Lawyer fees might be inflated but he is chair of restructuring at a top law firm. Shrug.
Any recovery at this point would be a freak occurance. It happens rarely across other cases, like aamrq and the merger, caught people off guard.
I can't leave this one to chance anymore though :(
Intentionally or unintentionally? Does that mean they sandbagged us?
Redaction does not mean value. I mean come on...The court and UST and the Ad Hoc saw the unredacted versions of every redacted document we saw, and yet still the court ruled against an Equity Committee.
The DIP lender has so much incentive to lend out the 95 mil. They get a superpriority claim on all of GTs assets, including the unencumbered cash of 50 million, they get a large 9.5% interest on the loan, and they get to dictate the timeline of GTs emergence, OR GTs debt is defaulted and Citi can recall the loan.
Citi will get its 95 million back + Its interest, or it will have a claim on GTs assets.
So as for that presentation, "It had to be loaded" (more speculation btw) it was obviously good enough for Citi to lend out the 95 million, but does not mean in any way that it was good enough to warrant an equity committee today.
You are not a professional in this case, neither am I, you can speculate all you want that the Ad Hoc harmed us by not pulling the information that "might have been there" but that is stepping over the line..
Fair enough on your point that it is speculation. Your speculation is not brought out of thin air. The speculation that the Ad Hoc just wanted the "sealed documents" for trading purposes.
I don't agree with you, but It isn't a crazy speculation. Worst things have happened in the financial world.
As for Hyperion? I don't get that one. I'll need more on that from transcripts / audio. Honestly Hyperion was going to do nothing for shareholders in the short term unless it sold for drastically more than 1 million, which is obviously not the case since no buyers are willing to buy it more than 1 million. (When POR time comes, do you really think the Debtors', creditors, and note holders would have valued hyperion significantly? No way, they want shareholders OUT. And now that they have a binding 1 million bid, it makes it so much easier)
In fact, 1 million sale of hyperion will benefit shareholders more than it costing 300k a month in the short term. Obviously in the long term, holders of the new GTAT will not have Hyperion, and that is lost potential revenue, in the long term.
I was a firm believer that GTAT Shareholders would have a spot in the reorganized company, so of course I despised the sale of Hyperion at 1 million. From my point of view, based on the Debtors' actions, denial of a committee, and an impending POR (relative to the case as a whole), Shareholders won't have a spot in a reorganization, so the sale of Hyperion is a non-factor. My opinion.
As for the Ad Hocs argument for the EC, he said both sides argued well. Just listen to the 5 minute conclusion again.
He is not ruling out whether or not shareholders have a spot in the final reorganization (he does not know obviously) but that the costs of an equity committee does correlate with the return equity might get in the short term, which is looking to be not a lot. I wish the decision could have been made based on the Debtors' future performance. If so, the costs would obviously correlate well with long term performance.
Honestly I won't be shocked if the new GTAT announces significant furnace sales once the new stock is issued.
Lol this is an article from February. But RSH Shareholders did get wiped out per their confirmed POR.
Why are you bashing btw? We all had hoped for a positive outcome from this including you. People like you are just as hurt and your hurting them more?
TJ, I agree, I did voice my concerns with the court/UST. I really did. I said what I thought had to be said from my point of view. I spoke with many people about this case. And TJ, Keep doing what you feel is right, no one is gonna bash you for that. I applaud you for doing what you did before, and as this continues.
I'll stick around and watch GTAT as much as I did before, I have a tiny stake left. 500 shares left after todays decision. I really do hope the best for GTAT shareholders still, it will be criminal if shareholders walk away with nothing.
In a way sure, but not considering how much was gained from the jump to .63. (and holding, I did sell off a portion around .58 and bought back in at .47 fully, to hold until todays outcome) I always wanted to stay long on GTAT, but considering this there really is no coming back. I assume the stock will bounce here and there since it is a Q stock, and there of course is a chance that the furnaces can sell and catch everyone off guard, but its been a long time and that has not happened.
TJ, A judge would never rule on the outcome of equity when deciding on appointing an Official Equity Committee. They are 2 seperate matters. But based on the case and how the lawyers are speaking of equity (creditors and GT), there really is no one that will fight for us anymore.
Out also. Walked away with a measly 500 profit after one year of averaging down. Sorry longs </3 I feel the pain 2
Just sounds like an ordinary day in court to be honest. Sealed info can't be spoken with open court. Shrug
I feel like i'm a kid again and I have a big soccer game tomorrow..Super important day tomorrow.
Will be sticky-ing the order for the EC motion, either denial or granting the motion.
"im looking at you arch" I dont think this was clear enough in my post, basically I don't think Arch coal will have sufficient liquidity if they continue to put off bankruptcy.
Baby steps..first the motion needs to be passed