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Still green? It's getting close to your stop..
It's 60 million revenue, NOT BOTTOM LINE. jeez, how bout some DD people
There was a slew of digital patent teaser sheets that went out last year. It's not like any real players are unaware of the digital patent auction.
One would think a genius could read the Senaca tea leaves. Insider on the board, fund sells down or possibly out after the examiner report. Hmm. Time to buy hand over fist? lol. There's certainly turmoil of some sort on the inside.
You're right, I don't know what is going to happen, but I highly suspect a holdco BK filing is being talked about as a defensive move if the subsidiary BK court decides to try to claw back the CoalCo assets. And if they do file, I wouldn't be surprised if they filed in Texas and not the SDNY. I think filing in different districts could have its advantages, and Texas law leans in favor of the holdco, IMO.
Ummm, stupidity comes to mind. It is a 13G, not D. They aren't going to take any active role. Seneca, who has a rep on the board, sold off to less than 4.5%, and presumably Litespeed bought a chunk of those shares. Anyone familiar with bankruptcy rules understands what that 4.5% represents. It's not that Senaca doesn't want to have to make filings anymore, it's that they want flexibility to sell out completely if Dynegy files for BK. If they do file, they will get a court order that prevents holders of more than 4.5% from selling their positions.
Just because Ichan is in this doesn't mean anything either. Everything distressed situation he's touched lately seems to have taken a total dump. Blockbuster comes to mind. He lost his tail on that one.
Litespeed's purchase kinda reminds me of that billionaire mexican fella that bought up about 30% of Circuit City for in and around 25-30 million. Guess what? He's 25-30 million lighter in the pocket.
Regardless of what that article said about Litespeed being 'distressed players', that is hardly the truth. A quick look at their 13F is tell tell, and they are completely out of their element here and either gambling or just plain lost.
http://sec.gov/Archives/edgar/data/1292975/000119312512061232/d298441d13fhr.txt
From page 129 of the report:
....It is assumed that Texas law would apply with regard to the CoalCo Transfer. The Texas Uniform Fraudulent Transfers Act provides for both actual and constructive fraudulent transfer claims. It also contains statutory badges of fraud. The same conclusions regarding both actual and constructive fraudulent transfer claims would be reached under Texas fraudulent transfer law. State law is applicable because section 544(b) of the Bankruptcy Code authorizes the avoidance of “any transfer of an interest of the debtor in property . . . that is voidable under applicable law by a creditor holding an unsecured claim.”
Applicable statute:
http://www.statutes.legis.state.tx.us/Docs/BC/htm/BC.24.htm
The Examiner concludes that the conveyance of CoalCo to Dynegy Inc. was an actual fraudulent transfer and, assuming that Dynegy Holdings was insolvent on the date of the transfer (approximately two months before the bankruptcy filing), a constructive fraudulent transfer, and a breach of fiduciary duty by the board of directors of Dynegy Holdings. Dynegy Inc., through its board of directors, used its power to control the affairs of Dynegy Holdings—an insolvent subsidiary whose property should have been maximized, or at least safeguarded, for the benefit of Dynegy Holding’s creditors—to disadvantage Dynegy Holdings for the benefit of Dynegy Inc. Dynegy Inc.’s conduct provides a basis for disregarding the corporate separateness among Dynegy Inc., Dynegy Holdings, and Dynegy Holdings’s newly formed shell subsidiary, DGI. As such, DGI should be considered the alter ego of Dynegy Holdings, and DGI’s transfer of CoalCo should be deemed a transfer to Dynegy Inc. of an interest in property of Dynegy Holdings.(8) In that event, Dynegy Holdings would have a claim against Dynegy Inc. for the fraudulent transfer of CoalCo. Alternatively, to remedy the injustice occasioned upon Dynegy Holdings and, derivatively, its creditors, CoalCo should be deemed property of Dynegy Holdings’s bankruptcy estate. Finally, the breach of fiduciary duty by the board of directors of Dynegy Holdings should be equally attributed to the board of directors of Dynegy Inc.
http://sec.gov/Archives/edgar/data/1105055/000110465912018950/a12-6988_1ex99d1.htm
You would think that would be easily understood and not need explanation. I guess not. This is not a rinse and repeat non-reporting OTC situation.
Uh huh, that goes hand-in-hand with me saying 'buy all you can', lol. I'm sure trying to 'keep it down'. Now where is that ignore feature? Always got to be somebody that has 50,000 posts come along and ruin a legitimate conversation. Hint: post less, research more.
I'd suggest you do that check instead of insinuate I'm lying. I'm not making a damn thing up. I've lived it. You go ahead and load the truck, I really don't give a s**t.
Sure, why fact check. Facts are unimportant.
Yeah, not bad, other than you should have got mulitple x's that. That's what I'm talking about. Maybe a knowledgeable Tronox holder will comment. What you got was a 'an out of the money' warrant, according to the debtor's stated newco value. As it turned out, the debtor's valuation was a mile off, as it can be here, and they were immediately in-the-money upon trading of the newco shares. You ought to know that. The EC counsel there was pathetic.
Yes, we've seen that before. Hush money to the PBGC, make whole on bonds where case law is unclear, and a judge that believed Lazard's deflated projected Enterprise Value that missed the immediate post-bk by a half billion dollars.
Long story short, $2.50 per share of real value never got paid to legacy shareholders.
But oh no, surely that won't happen here. After all, this is the judge that missed the Tronox valuation by a smooth billion, if memory serves correctly.
There will be a lot of talk about the value of the remaining 8,900 patents. Good luck putting a value on them. In the grand scheme of things, they probably aren't worth enough to move the needle.
What's left? Newspaper printers? How's the newspaper future looking? lol
Face it, management sucks and they are still there.
Companies can totally liquidate using Chapter 11 just as easily as Chapter 7. My idea of reorganization does not involve selling 75% of the company's assets and then reorganizing around the remaining 25%.
It is a liquidation of the company's most valuable assets. The common's recovery will depend on what is received via the 363 auctions and applied to a newco EV of no more than 1 billion at best, at that is a wild arse optimistic guess based on 200 million in positive EBITDA for TTM upon emergence, vs the debt at emergence.
Bondholders will demand to be paid in full, and have to be by law. If there isn't sufficient cash to do so, they will convert debt to equity, as they have no choice. Bondholders and creditors will beat down the value of the newco to gain a larger percentage of the newco's equity. That's how it works.
No way in hell debt holders want to reinstate their debt, as their returns will be greater receiving new equity and cash.
People seem to forget their recovery is based on a newco that doesn't have all that IP licensing revenue coming in that has somewhat kept this thing afloat for several years. It's gone.
Nah, I think you should buy tons more at these levels.
http://blogs.wsj.com/bankruptcy/2012/03/22/kodak-ka-ching/?mod=WSJBlog
14 million in fees already billed. That's a nickel a share in equity up in smoke. Lot's more to come over the next year.
Okay, you might have got me on that one, lol.
I'm implying they will devalue the debtor and make every effort to stem the appointment of an equity committee. I do know people there and they aren't your friends in this fight. I'm here because this is America, and I can do what I damn well want to and if I chose to monitor this case, I will. As it stands now, the risk reward isn't there, imo, therefore I hold zero. Anything else?
No, I said I know people there. Deal with it. You can't put together any iron clad numbers that will show equity in the money at this point. All you can do is try to prop up your trade. I have no position. Not short, sorry. Carry on.
Surprisingly not yet, but that doesn't mean much. Got a long ways to go yet, like another year. You boys do whatever you want to do, but I do know people at Lazard, and I base some of my expectations on past experience.
This thing is currently trading on hope, not actual facts on the ground. Until the facts change, this is wildly overpriced.
You just keep on believing whatever you want to. Don't let my experience skew your glass half full optimism. I have enough 'intimate knowledge' that I could write a book about them. You may not like what such a book would say though. Like what kind of chit certain funds try to pull. Like how the UCC never wants a high valuation. Like how the debtor would rather one never be appointed. Like how there is no actual fiduciary duty of the BOD and management during the BK process.
Stuff like that, but you go now!
lol, they conveniently left out cash burn rates, post-petition legal fees, and a 950 million dip loan. Even using their rinky-dink, incomplete valuation, that 979 residual just got ate up.
Furthermore, valuing nol's at half a billion is either a blatant pump or an illustration of a lack of knowledge.
Even if there was an official committee appointed, they would not have a 'seat at the table'. EC's don't work that way, regardless of popular belief.
Could you kindly show me one example of a 6 billion dollar valuation.
The stalking horse will be 2b or less....meaning equity will be billions out of the money at that point. If that prima facia evidence is available at the time of the hearing, it will awfully hard to convince a judge that missed the Tronox valuation by a billion dollars to appoint a committee. Nortel never had an equity committee and General Growth had easily valued tangible assets on the ground with positive EBITDA that gave an EV well in excess of the debt structure. Having intimate knowledge of the process and the players in the SDNY, I wouldn't bet on a committee at this time, although BR put together a fairly nice motion.
Given that is it unlikely an equity committee will be granted at the upcoming hearing, and coupled with the 'sure to come' Lazard/UCC tag team beat down of the EV of the debtor, I think the future holds significant near term downward pressure.
Nevermind that, explain why insiders are dumping.
I guess not. Looks like they are dumping the rest this afternoon.
Seneca sold out to less than 4.5%.....you know what that means.
It was based on $16 share. Add 10% now, so it should be about 12.3 cents per old share. I think.
Got the shares, but I think I'm missing about 10k in cash. If anybody uses Fidelity and got cash today, let me know.
Indeed it will. I'll take another stab at guessing the outcome and I think it's all over, done, no chance to re-file, no new lawsuit against IBM, nadda, estopped, kaput in 14 more days.
If I was the lawyer who took this on contingency, I'd be asking for that illusive discovery, and/or asking to be paid by the hour. I suspect QSGI can not produce the documents in that time...which really means in less than a week to allow a few days to rummage through them....to allow for an amended re-filed complaint. I also think they can't afford to pay hourly.
In short, the anti-trust case against IBM is most likely ancient history that produced a big goose egg.
(Now before all you law students start bashing my wild arse unsupported guesses, may I suggest you wait 15 days to do so, or else ;) ).
I take all the compliments I can get....even the back-handed ones, lol
Lol, I see the spelling police took the bait. Next, you'll be schooling me on rule 801.
Me, jerk? Naw, just an educated guess. Pay attention to the adjective 'educated'. You = butthurt.
IBM will not sue QSGI, don't worry about it. My educated guess on that subject is that IBM knows QSGI doesn't have anything they can get, and they'll file Chapter 11 again if IBM tried to get anything. Suing QSGI = trying to squeeze blood from a turnip.