Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
From Bloomberg:
"Although a company need not be insolvent to file in Chapter 11, the reorganization can be dismissed if the primary purpose is to obtain an unfair advantage in shareholder litigation, U.S. District Judge Sim Lake in Houston ruled on July 21.
The bankruptcy judge had confirmed a Chapter 11 plan. On an appeal taken by shareholders, the district judge reversed the confirmation order approving the Chapter 11 plan and remanded the case so the bankruptcy judge could decide whether to appoint a Chapter 11 trustee or dismiss the case.
After a hearing following remand, the bankruptcy judge concluded that the Chapter 11 petition was designed “to gain an unfair advantage in the shareholder litigation.” The bankruptcy judge also determined from the facts that there was “the absence of any clear need for financial reorganization.”
The bankruptcy judge dismissed the case, and Lake affirmed based on the conclusion that the Chapter 11 filing was not in good faith.
Although the Bankruptcy Code does not have a specific requirement that a bankruptcy filing must be in good faith, courts traditionally rule that a bankruptcy case can be dismissed for lack of good faith.
The case is Antelope Technologies Inc. v. Lowe (In re Antelope Technologies Inc.), 10-0205, U.S. District Court, Southern District Texas (Houston)."
http://www.bloomberg.com/news/2010-07-23/abitibi-controladora-almatis-general-growth-texas-rangers-bankruptcy.html
All of it paid for by us of course, and instead of it being prosecuted as a crime, our income-tax funded bankruptcy court is a willing participant in this perversion of due process. Gerber seems to be more interested in moving this through than anything else. Havent there been some recent cases cases where fraud has been proven causing a superior court judge to order the bankruptcy process vacated? I vaguely recall reading an article about a ruling from Judge Sim Lake regarding a case like that.
So maybe we'll all get bigger carrots, as long we promise to keep our carrots to ourselves, right? Don't know about the rest of you guys, but I could probably do that.
agreed
Maybe he's been learning from them or maybe is working for them. Where do you think the term "Shanghai'ed" came from? That's exactly what's been happening to our equity, isn't it?
http://en.wikipedia.org/wiki/Shanghaiing
I think I remember WS commented earlier that it was "too late" for that. Hope he will elablorate.
Headquartered in the international hub of New York, we have offices in the financial centers of Los Angeles, Beijing, and Sydney. We were one of the first U.S. firms to focus on financing companies in China with our initial SPAC transaction in 2003. With our record in China of over $1 billion raised and more than 30 transactions completed2, today we have the established infrastructure, relationships, and expertise to navigate this complex market.
Have noticed news reports of Rogerson speaking at various industry venues in China lately, seems to have recently spent a lot of time there.
CHDN=Charday Capital Markets LLC....
Chardan Capital Markets, LLC is a privately held investment banking firm with a focus on micro, small, and mid-cap markets. Our full range of services includes capital raising, merger and acquisition advisory, strategic advisory, equity research, institutional trading, and market making.
http://www.chardancm.com/our-firm/about-us
Many here have said CEMJQ was quietly in play. Perhaps they are right about that.
Well looking at the trading, it's starting to gumble like when someone ate a bad taco, and it's just a matter of time before she blows!
WS, can't PM you or I would. Have you seen what's going on with SWSI? Thoughts on all those lawsuits and trading action since monday?
PeterS, you are a very smart man to put that together as you have done, and I agree with what you have said.
In terms of analysis...there are many here that are wiser, smarter, and have more time to devote to this than I do. RJS, WS, OAPS, G2, TP, JackinHtown, Waverunner, RoyDMercer, Fernace, JustaVoice,Lestat, Chicken, The Weeen...and so many other great ones on this board which is blessed with, many whom I respect and have learned a great deal from.
I work full-time in a demanding engineering job, I am no finance or legal whiz, or even one with a huge amount of management experience, but just someone who has a lot of life experience in business. I do think your thoughts are in the right direction in terms of possibilities...but still we are at the mercy of a debtor and bankruptcy court and what they intend to do with those.
On the positive side, I did just finalize a divorce from a gold-digging shrew I married a couple of years ago...8 months of pure h*** with every imaginable underhanded trick from her and her lawyer. Now they are gone, it frees up some time...but not much.
You could very well be right about that. It could be a good thing.
Scott*rd not giving good data. Thanks for straightening that one out, I could not rationalize that one.
Price increased 18%, but selling volume was dominant?
Thanks Jax. You are a man of great talent, only one of those being carpentry. Carpenters sometimes, though they present themselved simply and humbly, are quite exceptional men. You have been a great mod for the board and as a source of information.
Bankruptcy courts are Article 1 courts,and are NOT independent of congressional oversight.
Article I tribunals
Article I tribunals consist of certain federal courts and other forms of adjudicative bodies. These tribunals, as created by Congress, are of various forms, and have differing levels of independence from the executive and legislative branches. They can be Article I Courts (also called legislative courts) set up by Congress to review agency decisions, ancillary courts with judges appointed by Article III appeals court judges, or administrative agencies. Article I judges are not subject to the Article III protections.
For example, these judges do not enjoy life tenure, and Congress may reduce their salaries. The existence of Article I tribunals has been controversial, and their power has been challenged before the United States Supreme Court, which has determined that Article I tribunals may exist, but that their power must be circumscribed and, when a potential deprivation of life, liberty, property, or property interest is involved, their decisions are subject to ultimate review in an Article III court.
http://en.wikipedia.org/wiki/Article_I_tribunals
That $102 million equates to $0.42 per share, on what is future tort liability? Gerber's real hard on requiring firm committments when it comes to financing equity, yet if he allows this to be done, it certainly looks like a very hypocritical double standard and a clear bias against the value of the fulcrum security to me.
I wonder if calling our congressional representatives to ask about what our justice department is doing with these bankruptcies and why this sort of thing is allowed would result in anything worthwhile? It certainly seems that there is a growing chasm between justice and law in our country, based on what I am observing in this particular courtroom.
It feels like it is an attack on the wealth of taxpaying citizens, isn't it? How were the GM bondholders were treated in this court? How does this help our economy or the strength of our nation?
What does this mean?
Interest expense of $117 million in the second quarter of 2010 was $102 million higher than the same period in 2009. The higher interest expense resulted from the determination it was probable that obligations for interest on unsecured claims would ultimately be paid based on the estimated claim recoveries reflected in the Plan filed during the second quarter of 2010. As such, interest that had not previously been recorded since the Petition Date was recorded in the second quarter of 2010. The amount of post-petition interest recorded during the second quarter of 2010 was $108 million which represents the cumulative amount of interest accruing from the Petition Date through June 30, 2010.
low volume walkdown today with one big block buy 100K so far today
That depends on whether you see the glass is half full or half empty. The "no" vote refuses the cap on the upside. There were almost 1.8 million shares traded today, roughly 90% of that was buy volume and there was another million share buy transaction today.
If it satisfied all of the claims, why would he thwart it?
The statistics on sanity are that one out of every four Americans is suffering from some form of mental illness. Think of your three best friends. If they're okay, then it's you.
Rita Mae Brown
I hate to advocate drugs, alcohol, violence, or insanity to anyone, but they've always worked for me.
Hunter S. Thompson
Sanity calms, but madness is more interesting.
John Russell
Though this be madness, yet there is method in 't.
William Shakespeare
In a mad world, only the mad are sane.
Akiro Kurosawa
Time for the EC to be in the equation.
There are alternatives to the oilfield bromide brines, but at a much higher cost. For other uses, the bromide cannot be replaced it is a scarce commodity. I doubt the FTC would allow a merger with ALB either.
Of course, we could always ask Mr Rogerson:)
http://www.facebook.com/people/Craig-Rogerson/1470695813
And that he actually cares. What is our government's actual agenda here I wonder?
Sounds like irresponsible adolescents instead of responsible captains of industry doesn't it?
Feels like a "fast one" to me. I'd rather see what Goffman dredges up. I think it could be a lot more interesting and probably a lot more rewarding to equity.
Let the greenmail begin.
That depends on what shareholders would be willing to take for their shares. It would be some dollar multiple in order to keep the largest shareholders whole.
It might be like this all week unless quarterly results leak early. Quarterly should be good, considering the performance of other companies for the quarter. It is rumored that the quarterly will be issued on Monday August 9, probably after close of the markets. Based on history, I expect low volume manipulation downward for a couple of days to stack up some low ask prices from whomever can be shaken, and those will disspear with a few big gulp buys.
Agree. This shouldn't be allowed. Doesn't the court have a fiduciary responsibility to protect the fulcrum security now that it has been established that there is stockholder equity?
Goffman filed for discovery on July 17, which I think MC's letter provides more than adequate justification for. That takes 30 days, if I am not mistaken, and then there will be a period of time to discuss those finding with the court.
If, in the ourcome of this, it can be proven to the court that the EC has not been dealt with in good faith, I think the court will have to change a lot of things.
OooYeah!!
Somebody big has been buying those shares down here. I doubt it was done for a quick flip.
I think it will too, if not more. In the end this just might turn out to be nothing more than a shakeout of weak hands.
That volume is coming in some good-sized block buys too. That's a very good sign.
Those warrants that MC wrote to the Judge about, that's a heckuva great idea that has a lot of potential when you really think about it. It was very well put by MC.
I also think this should get the bankruptcy trustee's attention. I wonder if the trustee's objection to the POR should or could be addressed with some court-ordered discovery production in the area of things like this and insurance policies etc...
All those insurance companies objections too...obviously they are all nervous about what could transpire. I wonder if they would be willing to disclose the coverages they have provided to Chemtura.
Has anyone spoken to their congressman about how this case is being handled in the bankruptcy process? Just a thought, it is a federal Dept of Justice administered procedure and a federal bankruptcy court/judge.