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Why has Freds announced greater capital resources today, to assure that the deal has solid backing, and why are lawyers and financiers still working on this deal, if the FTC decline is certain?
Memphis-based Freds just-got nearly half-billion-dollar increase-for-financing for-the-deal. If the Federal Trade Commission (FTC) does not block the pending merger, Fred’s now stands to acquire up to 1,200 divested Rite Aid stores as well as intellectual property, corporate infrastructure and distribution centers. An 8-K Securities and Exchange Commission (SEC) filing from Monday, June 12, showed that Fred’s entered into a “second amended and restated commitment letter with Bank of America, N.A. Merrill Lynch, Pierce, Fenner & Smith Inc., Regions Bank, Regions Capital Markets, a Division of Regions Bank and Citizens Bank, N.A” on June 9, 2017, to increase its financing for the deal. Source:Meagan Nichols
American City Business Journals•June 12, 2017....3:00 PM
What deals has the FTC turned down, lately, in the past ten years? That would give us a clue about the current proposed deal, between Rite Aid and Walgreens, now, wouldn't it?
Fred's Remains 'Optimistic' On Rite Aid Deal Amid FTC Review
Forbes
Bruce Japsen
Forbes June 6, 2017 @ 08:57 AM
Fred’s Inc. is “working collaboratively with Walgreens, Rite Aid and the FTC to obtain approval for acquisition of Rite Aid stores.”Fred’s Inc. Tuesday said it remains “optimistic” it will be able to buy up to 1,200 Rite Aid stores as it works with Walgreens Boots Alliance and Rite Aid to win regulatory approval of its merger.
Fred’s comments came as the Federal Trade Commission reviews whether to approve the deal, which would cement Walgreens as the nation’s largest drugstore chain.Though there have been reports that the FTC has concerns about Fred’s ability to buy the Rite Aid stores, the pharmacy chain’s management Tuesday said it is working “collaboratively with Walgreens, Rite Aid and the FTC to obtain approval for acquisition of Rite Aid stores.” If the FTC clears the transaction, Fred’s would become the third-largest pharmacy chain after Walgreens and CVS Health, respectively.
"Looking ahead, we are focused on executing our key objectives for 2017, including diversifying and optimizing our assets to improve performance and cash flow,” Fred’s CEO Michael Bloom said in announcing the company’s first quarter fiscal 2017 earnings. “In large part we are on track with the Fred’s 2017 plan, and doing exactly what we said we would do to optimize Fred’s Pharmacy’s business model and enhance value for our shareholders.”Fred’s reported a net loss in the quarter of $36.5 million, or 98 cents a share, thanks in part to various charges totaling $45 million, or 92 cents a share. The charges included legal and related advisory fees related to the acquisition of Rite Aid stores. Sales were down 3% to $532.3 million in the first quarter.
Bloom and Fred’s management gave no indication the FTC had concerns about the deal , but didn’t offer any detail of the discussions with the antitrust agency either. Walgreens last month officially set in motion a clock designed to force the FTC to make a decision on its purchase by early July.
New Message today from Chairman of Rite Aid Stores
June 5, 2017
Dear Rite Aid Team,
Today we wanted to provide you with an update regarding our pending merger with Walgreens Boots Alliance (WBA) and the proposed sale of certain Rite Aid stores to Fred’s. The Federal Trade Commission’s (FTC) review of our proposed merger has taken longer than expected, which has had a negative impact on our results. As a management team, we regret that this has created uncertainty and a challenging work environment for all of us at Rite Aid. We greatly appreciate the dedication you’ve displayed during this time and your tremendous efforts to serve our customers and support our fellow Rite Aid associates.
We remain actively engaged in discussions with the FTC to attempt to gain regulatory approval and there can be no guarantee that the merger will be approved. However, we expect a decision sometime soon.
At the same time, we also continue to work diligently in reviewing our strategy and making necessary changes to improve our performance. Our Rite Aid team has worked hard over the past few years to develop a robust health and wellness platform that is both strong and unique in the retail drugstore space. We will continue to build from this strong foundation as we also focus on operational efficiency, investing in growth opportunities and delivering a consistently outstanding experience to our customers and patients.
We will provide updates regarding the merger as we can. As we near a resolution, we want to again thank you for your outstanding efforts. We have a tremendous team here at Rite Aid, and your patience, professionalism and dedication during this regulatory review period has been exceptional.
Thanks for your continued commitment to doing great work and for all you do to make Rite Aid a trusted health and wellness destination in the communities we serve.
Sincerely,
John Standley
Ken Martindale
Rite Aid Chairman and CEO
CEO of Rite Aid Stores
President of Rite Aid Corporation
That's for computer experts....I just use the old-fashioned way that I know: "Quotes", and the name of the source of those quotes, with the author and day of the quote attributed. ( ...Because: I've never had a course on how to use a computer.)
As of June 5, 2017, this much-is Certain:
"The five-member Federal Trade Commission has only two commissioners in place; they must agree for the FTC to challenge a merger."
Article in the Wall Street Journal By Brent Kendall
Updated June 4, 2017 4:48 p.m. ET
Are you "The glass-is-half-empty" guy? It might be better to be "The glass-is-half-full" fellow. Regardless of what your outlook is, best of luck to you!
Revenue growth for Rite-Aid ..................................................................................................... 2016.....$32,845,073,000
2015.....$30,736,657,000
2014.....$26,528,377,000
Investors in Rite Aid Corporation RAD need to pay close attention to the stock based on moves in the options market lately. That is because the Jul 21st, 2017 $4 Put had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Rite Aid shares............"Zacks Equity Research
May 19, 2017 ............ WELL! Are folks who know going in for the Closing Deal?
Regard Rite-Aid as Undervalued: ...from "The Motley Fool".... "Can Rite Aid Stock Bounce Back After Last Week's 12% Drop?
Shares of the drugstore chain moved lower on concerns that its pending acquisition will fall apart and that Amazon.com is ready to enter this niche.
Rick Munarriz
(TMFBreakerRick)
May 21, 2017 at 11:00AM
Rite Aid (NYSE:RAD) investors can't seem to catch a break these days. Shares of the drugstore operator took a 12.4% hit last week, held back by a published report that regulators are stepping up their scrutiny of the company's proposed purchase by Walgreens Boots Alliance (NASDAQ:WBA). Things didn't get any better a day later, when CNBC reported that Amazon.com (NASDAQ:AMZN) may be making a push into this niche.
Shares of Rite Aid have plummeted 58% so far in 2017. The next time you hear there are no risks in buying into a stock trading at a discount to its buyout premium, remember this tale. Acquisitions can fall apart, and fundamentals can crumble during the holding pattern.Prescribing a new medication
The New York Post reported on Tuesday that the Federal Trade Commission was sending out mandatory requests to Walgreen vendors and rivals, requesting additional information. Sources suggest that these demands could mean the regulators are collecting data to fend off a possible lawsuit if they block the deal, but at the very least it indicates that they're still not ready to approve the drugstore combination that was originally proposed 19 months ago.
It's been a test of resolve for Rite Aid shareholders who thought they would be getting cashed out at $9 a share when the deal -- initially valued at $17.2 billion -- was announced in late 2015. Things began to fall apart as regulators started to show signs of being reluctant to clear the transaction. Rite Aid and Walgreens Boots Alliance agreed to unload several stores to appease antitrust concerns, with Walgreens Boots Alliance paying less in return. The deal's original deadline to close expired in January, but it was extended through July, with Rite Aid accepting a lot less at the buyout's completion. The stock is trading a lot less than the $6.50-per-share floor of the revised deal, so the market has some serious doubts that the deal will close in the next two months.
Then we get to Amazon's potential entry into this already competitive market. CNBC reported on Wednesday that the dot-com darling hired Mark Lyons from Premera Blue Cross to introduce an internal pharmacy benefits manager platform for its employees. Amazon's been known to test products and services with its own staff before rolling them out. Amazon's already selling medical supplies and equipment, and it's also reportedly hiring for its "professional" healthcare program.
Amazon is ruthless, and it's not afraid to take losses for the sake of gaining market share. Amazon could be disruptive to existing drugstore chains, and it's not a surprise to see publicly traded chains take a hit on the news. However, one can also argue that if Amazon does make a move here, it could ease regulatory concerns about the pairing of Walgreens Boots Alliance and Rite Aid.
The sell-off is overdone, even if the deal falls apart. Rite Aid isn't less than half the company it used to be when the year began. The stock is trading for a lot less than it was just before it agreed to be taken under Walgreens Boots Alliance's wing. Deal or no deal, it's hard to see the stock staying this cheap for long."..............................................................................Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy
So here's my opinion: The "smart money" knows this deal will go through. Evidence #1: 64 % of common shares are held by insiders, who are not selling; Evidence #2: Every news story, to create fear in the public's mind, cites examples where the FTC approves deals-- no matter how sketchy they appear; Evidence # 3: Amazon has announced they will also compete in the pharmacy space; Evidence #4: Knowing that the process is proceeding as it should, and with the deal a "certainty"--the "Wall Street" traders are seeking to maximize their gains, by driving down the price, as best they can, before RAD common stock rises up, to the "guaranteed price" of $6.50- $7.00..........and now, there is the "light at the end of the tunnel" with the recent Walgreen's filing to set the deadline of July 7.
So, in my opinion, this is going to work out well, for "the Faithful ones", who can withstand the pressures, that certain posters are bringing here.
Noah built his Ark, yet people doubted rain would come.
Current Short Interest:Short Interest (Shares Short)
35,184,100
Short Interest Ratio (Days To Cover)
1.7
Short Percent of Float
3.39 %
Short % Increase / Decrease
-11 %
Short Interest (Shares Short) - Prior
39,589,700
Shares Float
1,038,224,800 (Figures provided by ShortSqueeze.com 5/16/2017)
It's the process, before the FTC or judge gives approval; as anyone who has worked with the US Government knows--the slowest folks to deal with are the US government. A judge, looking at the merits of Fred's application to buy the spin-off stores, Rite-Aid's and Walgreen's shareholders already having given approval, will have to draw the logical conclusion that.....The deal ought go forward, and today the deal is another step closer to that approval. The news is positive, to anyone familiar with the process, in the way the government does things.
EGY: Climbing from here toward $2.00/share....run Vaalco Energy, run!
Rite-Aid: Looks like a nice jump here today.
Current Short Interest:
"39,589,700 shares short
Short Interest Ratio (Days To Cover)
2.2
Short Percent of Float
3.81 %
Short % Increase / Decrease
-7 %
Short Interest (Shares Short) - Prior
42,454,300"
....-latest figures according to ShortSqueeze.com 04/29/17
"Walgreens, managing everything so the FTC grants approval, is reportedly going to present a revised asset sale proposal which could include additional stores, distribution centers, software, and personnel."................-Traders News Source
The shorts will have to cover fast, because the new directors at Freds will do their jobs, and as the FTC is waiting for a third member on the commission, that appointment will come any day from the Trump Administration. The merger makes sense, and it is going to happen. It's like three cars at a stop because a crossing guard has asked them to wait for the all-clear: Then they proceed.
It is time for the shorts to cover Rite Aid. (IMHO).................New Fred's Directors Seek To Send Message to FTC: Fred's FRED on Monday settled with an activist investor to add two directors to its board in its latest boardroom shuffle in hopes that regulators in Washington will get the message that the small drugstore chain can absorb hundreds of Rite Aid RAD pharmacies required by a regulatory review.
Specifically, Fred's agreed to appoint Digital First Media CEO Steven Rossi and Timothy Barton, a technology expert and former CEO of Freightquote.com, to its board as part of a settlement with Fred's largest shareholder, sometimes activist fund Alden Global Capital. The board will expand from eight to nine members with the two new directors. Alden reported owning a 25% stake. The nominations come after Fred's installed three new directors in March and another earlier this month. The boardroom shuffle is intended, in part, to show the Federal Trade Commission that it can acquire as many as 1,200 Rite Aid Stores that the agency would have ordered divested as a condition of antitrust clearance for Walgreens' (WBA) planned acquisition of Rite Aid.However, the newly installed directors are intended to show that Fred's can become a significant national player. The installation of Barton, for example, is intended to respond to concerns that they can't overcome technological impediments to integrating the new stores. Barton founded Freightquote in 1998 and grew it into the largest online freight shipping provider in the U.S. - his installation on the board is intended to demonstrate that Fred's board has someone with the technological expertise to oversee such a major integration.Also, the board added people with key retail and financial expertise. In March it added Christopher Bodine, who worked for 24-years at CVS, helping to manage several of the company's largest acquisitions including its integration of Caremark. He helped oversee the CVS acquisition of 1,260 Eckerd stores as well as the integration of more than 700 Sav-on and Osco stores. The company also added Peter Bocian, a financial expert who served as CFOs at both Starbucks and Safeway. Also, Michael Bloom, the company's CEO as of August, was brought onto the board. Bloom had previously been the COO of Family Dollar Stores. He had spent more than 20 years with CVS Caremark. Earlier this month, Fred's also brought on Linda Longo-Kazanova, who was the chief HR officer at Keurig Green Mountain, and has talent acquisition expertise.
Solid Report: SunEdison monthly operating report, May 2016 https://cases.primeclerk.com/sunedison/Home-DownloadPDF?id1=NDE1NTk0&id2=0 ........Are we seeing some real figures, as a starting point, to determine how much value, will be around, for shareholders and bondholders.......... do we have all the bids in for the September TerraFormPower auction yet?
Chapter 11. This is the most comprehensive chapter of the Bankruptcy Code. It provides a myriad of options to reorganize debt, i.e., by repaying some debts, cancelling others and restructuring the remainder.Filing for chapter 11 bankruptcy protection simply means that a company is on the verge of bankruptcy, but believes that it can once again become successful if it is given an opportunity to reorganize its assets, debts and business affairs. Although the chapter 11 reorganization process is complex and expensive, most companies, if given the choice, prefer chapter 11 to other bankruptcy provisions such as chapter 7 and chapter 13, which cease company operations and lead to the total liquidation of assets to creditors. Filing for chapter 11 gives companies one last opportunity to be successful.Sometimes after a reorganization, a company will issue new stock that is considered different from the pre-reorganization stock. If this occurs, investors will need to know whether the company has given its shareholders the opportunity to exchange the old stock for new stock, because the old stock will usually be considered useless when the new stock is issued.
Read more: What happens to a company's stocks and bonds when it declares chapter 11 bankruptcy protection? | Investopedia http://www.investopedia.com/ask/answers/06/chapter11stocksbonds.asp#ixzz4GoSTRSqF
Could China join SunEdison's Terraform assets auction? ... (shudder)
Positive points about SunEdison: Its greatest assets are its 7,000+ employees with experience; next- it still has the wafer manufacturing facilities and capabilities-and an ever increasing demand for its products; next- it has created two yieldcos already, and, if they become truly independent entities, SunEdison can create more, and the bidding between them can make SunEdison's products more valuable; next SunEdison has world-wide representatives and world-wide business connections, invaluable assets for growth and opportunities in the future; next- the BK experience will make SunEdison wiser going forward to avoid the pitfalls its exuberance has brought currently; next- SunEdison will come out of BK in an advantageous position- like the hospital patient who goes into the hospital overweight, and comes out two months later having shed thirty pounds, and with perfectly balanced blood pressure as well....Finally, there is a major opportunity, for a new captain at the helm of SunEdison to lead this ship to prosperity.... You get a good picture of what this company will be.
SunEdison Assets: We won't know what the auction will bring until all the bids are in..............thus one facet of this mystery, the value of the some assets, is going to remain unknown for awhile, and the BK court is going to do its best to get the maximum .....give them credit (no pun intended.)
Proposed-SunEdison Auction of TerraformPower Assets will be HUGE!! ................ And with two, three, or more bidders, a successful auction will certainly relieve a large portion of their debt...........SunEdison keeps cranking out the solar-cells..........." So make some money, when the weather's sunny "
Here's How SunEdison Could Maximize The Value Of Its Yieldco Stakes
Jul.22.16 | About: SunEdison (SUNEQ)
Aurelien Windenberger is the Author of this Article:
Followed by
1,170 followers
"Summary
We learned last week that Homer Parkhill, SunEdison's advisor, now believes the company's assets are worth $1-1.5B. This was an increase from the $850M estimate in June.
The increased valuation is due in large part to the increased market price of SunEdison's yieldcos; TerraForm Power and TerraForm Global.
Even with the recent price improvements, both yieldcos are trading at compelling valuations due to uncertainty surrounding SunEdison's BK proceedings.
Giving another company control but maintaining an equity stake could be the best way for SunEdison to maximize the value of its yieldcos.
One of the largest unknowns in the ongoing saga, that is, the SunEdison (OTCPK:SUNEQ) bankruptcy proceedings, is the value of SUNEQ's assets versus its liabilities. Last week, US Bankruptcy Judge Stuart Bernstein heard arguments from multiple parties regarding whether or not to give SUNEQ shareholders a seat at the table by approving an OEC (Official Equity Committee).
The debate centered around whether or not current shareholders have any shot at getting anything once SUNEQ's creditor claims are covered. At issue is the fact that it is currently practically impossible to come up with an accurate valuation, given that SUNEQ has not filed financial statements since Q3 2015. Counsel for the proposed OEC argued that SUNEQ is not acting in the best interests of the shareholders, and given the high level of uncertainty surrounding the value of the assets, the OEC was well justified.
SUNEQ's financial advisor, Rothschild Inc.'s Homer Parkhill, offered a new valuation of between $1B-$1.5B, a substantial increase over his previous estimate of $850M about a month ago, yet still nowhere close to high enough to cover an estimated $4B-$5B debt load.
Back in June, Parkhill came up with the $850M estimate by noting that SUNEQ's stakes in its two yieldcos, TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL), were worth a combined $650M, while the company's remaining equity stakes in a large variety of assets was worth about $200M.
Based on my calculations, the value of the yieldcos had risen to about $930M as of last week, and is currently up to $990M after Wednesday's bump to GLBL's share price.
TERP GLBL Value
Shares Owned by SUNEQ 60.0M 63.3M
Price in Mid June $8.00 $2.70 $650M
Price July 13th $12.00 $3.30 $930M
Price July 20th $12.75 $3.55 $990M
This means that Parkhill's new estimate for the remaining SUNEQ assets is currently somewhere between $200M and $500M. The improved value there is also interesting, but this article is more about how SUNEQ could maximize the value of the yieldco stake.
Strong Sponsor = Strong Yieldco
TERP and GLBL both have an excellent asset base and dividend payment ability that would support much higher share prices, but they are being held back by the uncertainty surrounding their sponsor, SUNEQ. If we look at the current TTM yield for a variety of other yieldcos in the renewable energy space, they average a TTM yield of about 5-5.5%.
Thus, the best way to increase the value of the yieldcos would be for SUNEQ to sell its controlling stakes (the Class B shares) to a stronger sponsor. We've already seen that Brookfield Asset Management (NYSE:BAM) is very interested in SUNEQ's Class B shares of TERP, so it stands to reason that someone is likely interested in GLBL B share as well, assuming the price is right.
One option for SUNEQ is to simply market its B shares and sell them to the highest bidder, but my guess is that this approach won't maximize the value, since it will be somewhat based on the current valuations of the shares. Instead, I would suggest that SUNEQ offer to trade all of its class B shares and IDRs in each of the yieldcos to another sponsor (such as BAM) in exchange for Class A shares.
This would require interested acquirers to go into the market and accumulate the Class A shares required to exchange. The additional demand would obviously push up the price of the stocks, giving SUNEQ more value when the shares are exchanged. SUNEQ would then also be in a position to receive the reinstated dividends. Given the new, stronger sponsor, the shares of TERP and GLBL would once again trade at a similar level as other yieldcos. What would that be?
TERP GLBL
Expected Dividend $1.60 $1.10
Normalized Yield 5.3% 10%
Equivalent Stock Price $30.00 $11.00
SUNEQ Shares Owned 60M 63.3M
Potential Value $1.8B $700M
In this scenario, the total value of the yieldco stakes to SUNEQ increases to $2.5B. The company would also be collecting $166M in dividends, an amount that would continue growing each year as the sponsors drop more projects into the yieldcos.
For further value, perhaps SUNEQ could negotiate to keep a portion of the IDRs when making the exchange. These aren't worth much today, but with a solid sponsor at the helm, it will be only a few years before the IDRs are worth a substantial amount as well.
Conclusion
SUNEQ has a substantial amount of assets whose values are currently uncertain or unknown. At present, the company's advisors are using the current, uncertain values to present the picture that there is no way there will be anything left for the equity, once all the creditors have been satisfied. I believe I have demonstrated a clear path towards increasing the value of SUNEQ's yieldco stake substantially to $2.5B, and that this could happen in short order if the company takes the suggested steps quickly.
Others have noted that there may be substantial value ascribed to other assets, such as SUNEQ's large patent trove. One shareholder has shared his attempt at valuing SUNEQ's solar materials business in a letter to Judge Bernstein. While his $5.3B-$8B numbers are likely extremely optimistic, even a long-term value of $2.5B for this segment would mean that SUNEQ has at least $5B in assets to match against its $4.5B+ in listed liabilities.
Clearly, a purchase of SUNEQ at this time is still an extremely risky proposition. The company could act on my suggestions regarding the yieldcos and still be in a large hole if the solar materials patents aren't worth very much. However, it's clear that a large amount of uncertainty as to the true value of the company exists, and thus it seems only fair that shareholders get at least a small portion of the equity in the company when they come out of BK."
The Judge is both-enlightened and fair, two reasons, in my opinion, that he will find no convincing argument for the cancellation of SunEdison common shares, especially since SunEdison will continue to manufacture solar-cells and build solar facilities, for under the DIP, the creditors are providing $1.3 Billion in new financing, a clear example of their commitment to SunEdison, and their faith in its future.
To Bet against the growth-in demand for electricity has never been wise. For example, in 1989, The Public Service Company of New Hampshire was embroiled in legal and accounting snarls with the construction of the Seabrook Nuclear Power station; stock prices fell to historic lows, but, in time, the company was later purchased by New England Power, which made the stockholders of PNH the winners.
SunEdison has 60,364,154 TERP Class B common stock shares, which convert at a rate of 10 to 1 for the class A common stock shares, or 603,641,540 TERP Class A common shares....And at $13.20 per share, for TERP class A common stock, the closing price on July 26, 2016, that's a value of $7,968 million, or 8 BILLION US DOLLARS... source: Edgar Filings, June 24, 2016....comment: The lawyers know how much money is to be had, hence, all the lawsuits, hence the BK filing, to protect the value that SunEdison has built, and SunEdison will continue to build its value in the future, because the governments of the world recognize, that it will be a solar future for our planet.
From end of 2016-Q1 until today, SunEdison's TERP stake has increased in value over 50%, as pps for TERP has risen, from $8.65/share to $13.20/share at close today, July 26, 2016....this has to make BK court consider that further increases in the value of SunEdison's assets in BK are likely, further increasing the odds of Positive Equity in SunEdison, a boon to common shareholders.
TERP shareholder protection: the gist is that SunEdison will get maximum value possible for their shares......not just some low-ball number the offer might be, for the TERP shares owned by SunEdison. Again, more good news for SunEdison shareholders.
Positive points about SunEdison: Its greatest assets are its 7,000+ employees with experience; next- it still has the wafer manufacturing facilities and capabilities-and an ever increasing demand for its products; next- it has created two yieldcos already, and, if they become truly independent entities, SunEdison can create more, and the bidding between them can make SunEdison's products more valuable; next SunEdison has world-wide representatives and world-wide business connections, invaluable assets for growth and opportunities in the future; next- the BK experience will make SunEdison wiser going forward to avoid the pitfalls its exuberance has brought currently; next- SunEdison will come out of BK in an advantageous position- like the hospital patient who goes into the hospital overweight, and comes out two months later having shed thirty pounds, and with pertfectly balanced blood pressure as well....You get a good picture of what this company will be.
Two suitors instead of one? this bodes well for SUNEQ Dow Jones News Service: Saturday 2:04AM JUly 23, 2016 press release..........Brookfield Asset Management Inc. and Appaloosa Management LP are joining forces to bid for SunEdison Inc.’s stake in TerraForm Power Inc.The two companies are the biggest and third-largest holders of TerraForm, the clean-energy yieldco formed by the now-bankrupt SunEdison.
Brookfield and Appaloosa have formed a group to jointly bid for SunEdison’s shares in TerraForm, according to a regulatory filing Friday. Neither is obligated to enter into any agreement.
Brookfield owns about 11.1 million of TerraForm’s Class A shares, about a 12 percent stake, according to data compiled by Bloomberg. It also has entered into swap agreements to potentially buy almost 11.6 million additional shares. Appaloosa owns 8.7 million shares, or 9.5 percent. The two companies met July 18 to discuss the issue.
Brookfield announced its holdings in June, and also said it had expressed interest in acquiring SunEdison’s Class B shares that provide control over TerraForm.
The captain at the helm has departed, that was an important step towards righting the ship.
I concur that an Equity Committee is Essential to protect the shareholder's interests, against the vagueness, that the lawyers have given. The BK was purposely filed to foil the lawsuits, and to drag out for months, if not years, a resolution, while protecting SUN EDISON, as the company's projects continue to increase in value, and to give time for TERP and GLBL share prices to recover from their recent decline....
The longest word in the English Language: "Smiles"......there's a "mile" between the beginning and the end! .... A company can only be managed with optimism.....A successful man was once interviewed by a newspaper reporter, who asked: "What is the secret of your success?" The man replied: "Two words". The reporter asked: "And what two words are those?" He replied: "Good Decisions". "And how do you make good decisions?", he was asked. "One word" he said. "And what word is that?", he was asked. "Experience." he replied. "And how do you get experience?" he was asked. The man replied once again: "Two words". "And what two words are those?" the reporter asked. The man replied: "Bad Decisions"...
Sun Edison: The assets keep rising in value for the assets in bankruptcy, and I keep hearing that not all the assets are in Bankruptcy, so there is more value to this company than we are being led to believe...the last financials stated 20 Billion dollars in assets, vs. 16.1 Billion in liabilities....no pain, no gain!
A comparison to make: Remember MunieMay symbol MMA....it was at 12-15 cents a share for over a year, back in 2008-2009. They sold a lot of properties off, and reorganized themselves....still around today under the symbol MMAC....and accounting for a 1 for 5 reverse split, their price per share is around $3.67 a share today...a 2400% to 3000% increase. Remember, too, that SunEdison is in BK in order to reorganize, not disappear. When the OEC is approved, the common shares will still be around for the future.... and unlike the iceman or the milkman of yester-years, it is going towards a solar future for the earth.