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Nice info Newtech.
Did you get a sense that their plan was coming very soon? With the Adhoc plan in place for 30 days, I have to think the plan would be coming very soon...as in the next 10 days.
To the person that just hit the B share ask price for 2000 shares: Namaste. I celebrate the place where your gain the MMs squirming become one.
True, but Ill take it over Bidslap Fiesta.
Not really...its kind of like getting kicked in the privates...slightly stimulating but mostly painful.
Its strange how up and down the volume is. One day its hundreds of thousands, then nothing for three days.
At this point I've just accepted that until we hear news for a new plan that includes shareholders, I shouldn't even bother looking at it.
Wake me up on Monday when its worth watching.
There is no question that the bid slapping is back with a vengeance. I agree with Newtech that we need to watch for more prearranged trades. I can't help but think that a plan from the EC is eminent. Clearly they had many things already prepared, deals struck, etc. Now they have had four weeks after the auction was canceled to bring those deals to paper.
And remember, soon we will see reorginized shares of Trx trading on the NYSE and the MMs will be completely silenced...
These guys annoy me, but then I see 200,000 bodies in Haiti and I can't help but think our troubles are only so bad.
December MOR shows shareholder equity down to about 189 million after a net loss of about 60 if Im reading this right. There is an 11.9 million reorg cost. I wonder if that is the breakup fee for Huntsman.
My misread, I missed the first page as it was like page 24 of the document submitted by the EC. As the transcript says "THE COURT" rather then the judge presiding, I just never caught it.
Sorry guys, my mixup.
Important Read.
http://www.kccllc.net/documents/0910156/0910156091221000000000006.pdf
This is a document that was the objection from the EC regarding the bondholders ad hoc agreement. Included, it has a 300 plus page court transcript. On page 26 of the transcript, he gets really annoyed with an attorney named Spraygen who represents the debtors. In it, he brings up equity and common shareholders. Essentially, he says "I realize what you say the company is worth. That doesn't mean the shareholders get true market value of what the company is worth. If you say "hey, we agreed shareholders get 60 million..." and then gosh the company is really worth 300 million what then?"
He spends several pages in the transcript talking about true equity value. He also gets annoyed that the plan that was voted on by bondholders is leaving shareholders out. He notes specifically that no disclosure statement was made available to bondholders at the time of the vote. There was no provision in the lockup for bondholders to change their vote if a disclosure statement came out that they disagreed with.
If you read his position (and I highly recommend reading it because he is great) you may feel a bit better about digging in your heels and ignoring the day trading garbage.
I have read somewhere (and it was tied to a court document from the hearing that took place around Dec 22/23) that he wanted all Plans submitted for review no later then 3/10/10.
When it comes to Tronox, I think that understanding the judges frame of mind speaks volumes. Lets face it, our fate lies in the hands of the Judge. I am in favor of always reading between the lines on what the judge is telling us.
1. He was annoyed at the onset regarding the legal fees accruing in this case (as documented in March of 2009.) This is not a typical position for a judge, as the "Old Boys Club" is always in favor of attorneys making out well.
2. He put the EC together in the first place for a reason. The TRX ship was knee deep in Rats.
3. When Tronox brought the PSA to court, the EC had some very specific things they wanted modified:
From section 26
"Specifically, the Equity Committee respectfully requests that
this Court delete the following language from the order approving the Plan Support Agreement:
The entry into the Plan Support Agreement by the Parties, and the
performance and fulfillment of their obligations thereunder, does not violate any law, including the Bankruptcy Code, and does not give rise to any claim or remedy against any of the Parties under section 1125(e) of the Bankruptcy Code, including the designation of the voteof any Party under section 1126(e) of the Bankruptcy Code, on account of entering into the Plan Support Agreement and the performance and fulfillment of their obligations thereunder."
The Equity Committee further requests that the order include the following additional language:
To the extent that a competing plan is developed and/or the
Debtors’ exclusive periods are terminated, nothing herein or in the Plan Support Agreement shall limit the ability of any of the parties-ininterest to discuss and/or negotiate the terms of such competing plan with the plan proponents of such competing plan, or to vote in favor of such competing plan.
Obviously, this was the EC allowing this plan to be used as a place holder, and the language that they requested be modified was to put the court on notice that they had a substantially better plan coming.
Evidence of this is seen here:
Section 5:
5. The Equity Committee’s efforts to develop and receive commitments for financing a plan alternative have been hampered by the pending auction and potential sale of the business.
The cancelation of the pending sale to Huntsman Corp. has eliminated the most significant obstacle to securing financing for an alternative to the Ad Hoc Bondholders’ Plan. Thus, should future negotiations with the parties to the Plan Support Agreement fail to produce a fully consensual plan based on the current structure, the Equity Committee is confident that a fully
funded alternative to the Ad Hoc Bondholders’ Plan can soon be achieved.
Section 27:
The Equity Committee continues to support efforts to reorganize Tronox and is hopeful that the Ad Hoc Bondholders’ Plan can be consensually modified to include the interests of the shareholders. However, the Equity Committee is confident that a fully funded alternative to the Ad Hoc Bondholders’ Plan may soon be achieved, and such plan should be permitted to gain the support of unsecured creditors, the EPA, and the lenders with respect to the Replacement Facility.
Not only did the judge agree with the EC, he made the attorneys involved make changes to the PSA in the hallway with a word for word change that was requested by the EC before he would sign the PSA in to motion.
I believe that the EC already has agreements in place but with the auction keeping them from getting deals inked. It wouldn't surprise me at this point to see them skip the current PSA all together, and introduce their own plan turn key...lock stock and barrel.
When that happens, remember what the judges state of mind has always been. He seems to agree with the logic demonstrated by the EC. The AdHoc Bondholders Agreement is going to look like smoking pile of manure. The judge may even take offense to the outright low balling of the companies value in exchange for 70 percent ownership and completely screwing the share holders.
It is THIS deal that we need from the EC. When it hits, I believe the judge will fast track it so quick it will make your head spin and your wallet grin.
Newtech, Uhl, Titanium...did I miss anything?
I couldn't agree more. I think if the PSA put forth in December wouldn't have completely left us out, the stock would have been north of 2 dollars the day that the auction was canceled. The only thing holding back the stock at this point is that currently the PSA leaves us out. We need news to the contrary to go any further IMO.
Here's to hoping that the EC puts something out there very soon...before the bid slappers tear us apart.
With this trade and last Thursdays, we've seen 15% of the B shares trade across two movements. Bizarre.
Did I just watch him off 700,000 shares at .51 sec?
Bid slapping commences. B shares down to .50 with a current bid of .45
Always nice to see what they do to us when there is no volume hitting the ask.
You can stare at my wall if I can stare at your lint trap. Where did the volume go? Oh that's right...its not Monday.
BTW, welcome back Uhlmant!
They actually said they were disposing of the stock? It would seem reckless to comment on something like that during a planning phase that has a court making all the final decisions. Tronox doesn't have the authority to tie their own shoes at this point.
Stock Market is closed tomorrow...just a reminder.
That is crazy. Would be nice to see something similar happen here.
Gadzooks. I thought I did well at .10 lol. I have to admit, if I bought like 500k shares at say .02 there would be temptation to cash out and curb risk.
At the latest court appearance, there were some items to be resolved. One was "Date of Final Court Appearance" which I believe is when they emerge from 11.
Any news on what was decided?
You and titanium have a gift for thought provoking posts. I agree with you both that if someone like Huntsman wanted to take another shot at Tronox, stock accrual would be one way if you had reason to believe that those shares would count on exit from Chapter 11. Im almost surprised that someone over there doesn't try to accrue all they can...set a price of 1.00-1.25 for anyone willing to part with shares if you perceive they will remain intact once the company emerges.
I've always believed that there was more then meets the eye with some of the trading happening since October. Would be great to see a "behind the scenes" on all that happened from January of 2009 to current behind closed doors. Someone on the EC needs to write a book.
Outstanding post, and very insightful. I would have to agree that for that much volume over a 60 minute or so period would have to be some kind of orchestrated trade. I doubt the trade would reflect a Tronox board member or employee, as Im sure this would constitute possible insider trading. So we are left with a large stake holder liquidating to curb future risk. If someone accrued a million plus shares at 10 cents, they turned 100k in to 600k. This kind of player would be easily satisfied with a 6x gain.
I purchased the bulk of my shares at .10 cents in the first week of September. I'm in for the haul. If there was ever a once in a lifetime opportunity, I perceive this to be it.
Would a pre-arranged sale be done through the exchange? I would think it would be done as a transfer through your brokerage acct.
I hold a fair amount of A and B shares, but when I originally bought I purchased twice as many B shares because they were cheaper. Thats why Im always whining about the B shares trading lower.
I wish someone would up the price on the B shares...its been hitting the .60 ask all morning.
There was a fair amount on the court calendar today. Any other news?
They are slapping it hard right now.
Trying to slap the B's to .55
1.55 million shares of B have traded. No idea what to make of that much volume.
Guys isn't NITE one of the MMs that's been bid slapping us for the last 3 months? If so, good riddens.
There was 47k shares traded before that started. Now 1.047 million have traded. So someone put a sell on 1 million shares .60 cents. Now the Ask is .65 right after.
You guys hit it on the head. Some one major must have liquidated shares today. 550k shares of B have traded.
This is why I keep you on retainer.
MMs playing games on the B shares.
I just watched the ask go from .695 to .59, 100000 shares moved and wacked the price down to .60.
Indeed, and the B shares are now beginning to match the PPS of the A shares. It is encouraging to see them rise together. In addition, the Ask is increasing as trades progress. Lets hope for some good things in todays court session.
Makes me wonder if thats why the stocks been moving. I wonder if we could see an alternate plan from the EC?
To answer some questions:
A shares have a single vote and B shares have six votes.
The plan put forward so far was only a document designed to act as a work in progress. The Equity Committee (created by judge mandate) has been assigned to represent the shareholders interest due to environmental liabilities fraud. The EC is currently working on a plan that demonstrates increased value of Tronox, and includes the shareholders in the restructure. No plan can be approved without the concensus of the EC. The current plan has not been approved, but is acting as a work in progress to avoid an auction sale to Huntsman.
We expect a plan from the EC any day now.
I agree sec...they seem to accumulating. This is good.
Anyone know where the bond is trading? The report I look at hasn't shown any activity at all today...