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Morning, may the Eight-K be with us soon....
I'm only hoping for a Hula Hoop
Eva Post #357
My letter 2003 to Trustee!!
Dear Mr. MacMahon,
I am writing to request that the Trustee appoint an equity committee in accordance with 11 U.S.C. § 1102(a)(1) for the shareholders of two insurance holding companies, Trenwick Group Ltd. and LaSalle Re Holdings Limited. These companies recently filed for voluntary Chapter 11 reorganization in conjunction with Trenwick America Corporation, and the proceedings have been consolidated.
I own 448,000 shares of Trenwick common stock. I am writing on my own behalf as a shareholder. I am not representing any other person in this matter. I am currently seeking bankruptcy counsel to assist me in evaluating my alternatives, but based on my relatively small holdings, I cannot afford to obtain adequate counsel independently.
Based on a preliminary review of publicly available information, it appears to me that an equity committee is necessary to achieve adequate representation for equity holders in this case. Three factors generally relevant in this determination are (1) the number of shareholders, (2) the complexity of the case, and (3) whether the cost of an additional committee significantly outweighs the need for adequate representation. In re Wang Laboratories, Inc., 149 B.R. 1, 2 (Bk.E.D.Mass. 1992)
First, the number of equity holders is large. Based on publicly available information, I believe most of the equity is currently held by individual investors who do not appear to be directly affiliated with any large financial institution. These small holders, like me, are not likely to be able to obtain adequate legal or financial advice in this matter except through some form of committee representation.
Second, the reorganization plan is extremely complex. Three holding companies and numerous regulated subsidiary entities are involved, with concurrent proceedings in Bermuda and possibly also the UK. The
plan involves the creation of additional entities, the sale of key assets, provisions for repayment of intercompany debt, and a long period of regulated operation during which insurance claims will be paid from existing reserves.
Finally, the cost of an additional committee does not outweigh the need for adequate representation of equity holders. The Debtors in this case do not appear to be so hopelessly insolvent that formation
of an equity committee would be a waste of time and funds from the Debtor's estate. See In re Williams Communications Group, Inc., 281 B.R. 216, 220 (2002). Based on publicly available information, the
current book value of all three Debtors appears to be positive. In addition, it appears that a reorganization plan has already been worked out with the largest classes of secured and unsecured creditors, and that this plan includes provisions for distributing residual assets to equity holders, although such distribution may not take place for many years.
The appointment of an equity committee would likely have a cost to the bankruptcy estate, but this cost is necessary to ensure adequate representation. Because of the potential conflicts between debt and equity interests over the long period of time contemplated in the plan, it is unlikely that a blended committee would provide adequate representation for equity holders, even assuming such a committee is authorized by statute. Given the large number of small equity holders, committee representation is the most reasonable and efficient way to assist equity holders in evaluating whether the reorganization plan is in their best interests, and to allow them to protect their interests if necessary. Equity holders would have a strong incentive to keep costs reasonable, since any equity distribution would be made from residual funds after all other classes of creditors have been paid.
I would be willing to consider serving on an equity committee if the Trustee were to appoint such a committee. If necessary, I believe I could provide a list of additional equity holders willing to serve on a committee. Although I am not representing any person or group in a legal capacity, I am in contact with other shareholders and I plan to help organize other shareholders in the event we are able to obtain committee representation.
Sincerely,
Eva Nizzali Milano, li 26 August 2003
Via delle rogge 20
20084
Lacchiarella
Milano Eva Nizzali
Italy
Morning All
Trenwick has no Directors it's controlled by the Courts...so approval must come from the Courts.
Trenwick America own all of the common securities of each trust as noted in the SEC...
Link - http://www.sec.gov/Archives/edgar/data/1122211/000095012301504582/y50594a2s-3a.txt
It's ALL or NONE - just hope my head does not end up in the basket....
Just roll-up the window and wait for the next HIGH-TIDE
Could be the future underwriter when the COMPANY hit's the BIGBOARD. IMHO
It's a 100K share cover charge
Invest in Chickens and Ducks - better return on your investment.
...the one's that don't toe the line will make great soup for the family...
Slave to the pastic....
....or Slave to the Truck....
....or Slave to the Wife....
.....planning her next trip to Chile, so I may enjoy my FREEDOM...
World Currencies Play 'Meet Me at the Bottom'
While at first glance it might appear that this missive would be about global equity markets, such is not the case. However, it might as well be. With bad economic news rolling off the presses daily, equity markets have taken quite a tumble recently, albeit in much quieter a fashion than in late September and early October. It is a pretty good bet that the combination of 516,000 first time unemployment claims this past week coupled with a 2.8% drop in retail sales in October won’t help matters much.
Rather, it is worthwhile to focus on the US Dollar and its current reprieve from the clutches of oblivion. Make no mistake about it though. This is not so much a Dollar rally as it is other Central Banks staging a global game of one-upsmanship. Disinflationary forces are sneaking into economies around the world and nobody wants to be Japan circa 1992-2008. Despite perma-low interest rates, the Japanese economy has been stuck in a rut for almost two decades. Or has it? Despite all its problems, Japan has managed to be one of our biggest creditors, owning roughly $586 Billion in Treasury bonds as of August 2008. Ironically, we can be happy the Japanese have had the ‘problems’ they have or else the party would have ended long ago.
Almost immediately after last Friday’s jobs report, the markets rallied on the notion that the Fed would cut interest rates at its next meeting. Folks, we’re already at 1%. How much lower can they really go? Frankly, it doesn’t matter. There is no longer any doubt that yields across the full spectrum of US Bills, Notes, and Bonds are negative. So they might as well take them to nothing.
Not to be outdone, Mervyn King, head of the Bank of England emphatically pronounced that BOE was prepared to cut interest rates to 0% to save their economy. I guess Mr. King has his own fleet of helicopters ready to save the English from deflation much in the same way our beloved Ben has envisioned. You can’t make this stuff up. And it isn’t just the two of them. The ECB has cut rates as have the Bank of Canada and Australia as well. Even the Chinese have gotten into stimulus mode and their growth is still around 9% on an annual basis!
From a purely technical standpoint, the Dollar’s rally is already on borrowed time. It is important to understand that the overwhelming majority of the rally has been driven by the ongoing global liquidation and triggering of credit default swaps and other OTC derivatives (see chart). This has created a dream scenario for anyone wanting to purchase real assets. Oil has been reduced to $55/barrel, gold to the low $700’s, and silver to single digits. The situation is similar across the full spectrum of tangible assets.
To help stem the bleeding from OTC derivatives, the Fed has been in the lending business for nearly the past year. The recent numbers have been astounding. The Fed has been lending at a rate of over one-half trillion per week for the past month or so. Keep in mind this is above and beyond the commitments of the Treasury. The Congress has had no say in this lending activity at all not to mention the American people. Worst of all, no one really knows who is getting what. So much for transparency.
With trillions of fresh cash pumped into the banking system just looking for a place to go, it is a matter of when not if in terms of this liquidity causing problems. There are more hand grenades still in the Treasury market where the Fed is going to be forced to further monetize debt by buying US Treasury bonds directly. The foreign money hasn’t been there the past two months, and the Treasury is going to have a truckload of new bonds to sell if it hopes to fund the bailouts it has already committed to plus the ones that are going to be demanded moving forward.
Under the direct monetization of debt, the Fed will hand the Treasury fresh Dollars which the Treasury will use to fund government bailouts and other largess. This money will end up in the financial markets, bank balance sheets, economic stimulus packages and the like. Despite jumping on the bully pulpit and putting up the appearance that he wants the banks to lend the bailout money, Henry Paulson wants them to do anything but. A release into the economy of that magnitude would cause an immediate hyperinflation. Instead, Secy Paulson will try to manage how the money moves throughout the economy. This endeavor will be an epic failure and will likely result in dislocations such as shortages of goods and credit – most likely both as well as surpluses of labor, durable goods and production capacity. We’re already seeing some of these dislocations emerge.
Recessions don’t guarantee falling prices
The notion that consumer prices have to fall because of a recession is pure nonsense. This argument is rooted in fantasy and demonstrates a total lack of understanding of how money works. The more money that is made available, the higher nominal prices will go – regardless of economic growth. We have already gotten one stimulus so far in 2008. It is a good bet another will be in place for the critical holiday shopping season. A shopping hiatus during this holiday season will be catastrophic.
If you think the number of Chapter 11 filings is high now, wait until after 1/1/2009. In a $13 Trillion economy, 70% of which is consumer spending a mere 10% cutback in consumer spending (we’re more than a quarter of the way there just in October) will amount to nearly a trillion dollars yanked from the US economy or a 7% contraction in GDP. And that is just the result of a 10% cutback by consumers. These are the unintended consequences of building an economy on consumption. We’ve already got the recession. When the fresh fiat created to fatten bank balance sheets and lubricate credit markets works its way to Main Street, we’ll have rising consumer prices as well.
How does all this play into the Dollar? Quite simply, in the absence of tangible backing, a currency is backed by economic activity or perhaps implicitly by natural resources as in the case of Canada, Australia, and Russia. US economic growth is fading fast, and as for the full faith and credit of the US Government, enough said. While there is no official measure of the full faith and credit aspect, the willingness of foreigners to buy debt is a pretty good proxy. And during the past two months, foreigners have been less than inspired to take on more US Government debt.
In short, there is no fundamental reason whatsoever for the Dollar to gain value. The current situation is an opportunity to get real. Get real assets and buckle your seatbelts because the currencies of the world are about to play a good old-fashioned game of meet me at the bottom. Lucky for us Gold won’t be participating in the game.
Link - http://seekingalpha.com/article/106226-world-currencies-play-meet-me-at-the-bottom?source=article_lb_themes
Better have Worn hold off on the venti soy quad till the first of year...
Reviewing the MOB option - look's like the Tree Shakers are here - HOLD tight.
and a little Green for the Chinese New Year just around the corner...
Green always a good color with the Chinese Turkey Day just around the corner...
I tried to blame the CaT, but she's not buying the story
...it's still my fault
Let me pour you a cup of Joe -
...only two hours left to clean....
Gary Cohen - Newsletter partner of Rick Diamond
Link - http://www.co2partners.com/november.htm
Gary Cohen - Blog
Link - http://co2leadership.blogspot.com/
No I've been sleeping in the front-room trying to occupy as little space as possible, her cat has dirty the house leaving hair balls everywhere and her son room is dirty....
.....I'm just a victim of the maid on vacation.
Enjoy Life and count the tumbleweeds passing....
....till the Eight-K
Second cup of Joe with d'KaT in the background...have to pull an all-nighter cleaning the house - the wife on her 13-hour plane flight from Chile...have to clean her Castle, else no cake for Jester and she will make me sleep in the barn.
Maybe CaT will share his six pack of BEER and Crackers with us.....
eVA fine, hold'n her close till d'Eight-K.
Amy was a midweek cash machine till too many players started dancing with her.
Looks like a few folks from ACI moved over to CO-2 - nearly google this one to death trying to find DD information...
Look like a Shell Play ...thanks for the head-up....did you ride AMY during shell-play?
Box of Crackers, two beers, kAt Country Music, and a good book is all you should need for Friday night.
Don't forget to PAY the TAXMAN his 50 percent cut...
Time to start planning the Tumbleweeds...for the Spring Harvest.
Half-Day Friday
starting to read today's post.... =)
We still need to have the Triple bottom DOW confirmation....two cups of Kool-Aid 4-U.
As a LOYAL TAXPAYER your suppose to drink the Kool-Aid and your future Social Security check will be in the mail...BIG BROTHER has his eyes on you.
Aged KOOL-AID can be a source of CHEAP WINE.
Good Night before Eight-K to you also...
Good Morning All - Glad to see your a Happy squirrel today.....
....few more days and you will be singing that O'Chip'Monk song...
$$$ Trend will never end as LONG as TK is singing
Toby Keith - Who's Your Daddy?
Just wait till the CHART turns RED....
....then I'm backing up JESTER'S TREE SHAKER to loosen up the NUTS again....
The Court would only allow DIVIDEND payments if all liabilities payments have been paid...
Therefore....
LaSalle is now in compliance with the Bermudian insurance solvency regulations and therefore is now authorised to pay any dividends to its parent."
The Re'child can upstream ALL profit to the Re'parent.
Which is the MAIN reason I was shaking the TREE for any loose NUTS......that may have fallen from the WEAK hands
ALL the LOW Hanging FRUIT is GONE....
Time to party on to 10 cents....
good night all
Volume will come once people see the CHART...sing a few happy tunes, take a few chips off the table, and just try to stay focus till the Eight-K.
Only takes one bad grape to spoil the WINE. - GOOD-LUCK
At the current rate of change you should be BREAK-EVEN by FRIDAY...
The last line of text is pushing over the chart....