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Thus, the BK would have become the tool of an empirical system of financial markets whose goals are focused on unbridled capitalism. So, equity is doing in such a restructuring belongs only to large players. Implicitly, the judge appears to base its decision on the legimacy of those voting in the POR. In this case, we are denied the POR. and as we will no longer part of the new company, our rights are destroyed. Our actions are a class without values and invalid Implicitly, the filing of the POR. Regardless, our arguments, we are no longer legitimate, following this decision. They are those who have money who win. Aurelius and contrarian capital, by their power, have won their case. This is unfortunate, but in this system is just about money. The reason we must save this abobinable system that could destroy everything that our nations have built for years. The mere fact of having fought, reveals the TRUTH. Surely that's not enough, but first it passes through the information, and so quietly that beautiful image of demagoguery will have a facelift. Hoping, that Wikileaks, is not the only solution for justice.
Strategy cds / ABWTQ
Ban Credit Default Swaps? These Corporate Bankruptcies Show We Should
For frustrated investors looking to justify the ban of credit default swaps (CDS), look no further than last week's corporate bankruptcies of Canadian newsprint producer AbitibiBowater Inc. (ABWTQ) and U.S. shopping center developer General Growth Properties Inc. (GGP).
In both of these cases, credit default swaps became an actual bankruptcy catalyst - for the first time ever.
In the lead-up to both bankruptcies, the lenders who had debt outstanding - who would have the right to vote on any reorganization - had hedged their debt through credit default swaps and so stood to benefit from the company's bankruptcy. That made it very difficult for both companies to get the majorities they needed for debt reorganization, making bankruptcy inevitable.
The CDS holders were in the position of seeing a 1929-vintage stockbroker balanced on a window ledge, and yelling "Jump, jump" - while simultaneously taking bets on the result.
In the AbitibiBowater bankruptcy case, holders of credit default swaps played two key roles:
* They were spectators and potential litigants.
* And they were the generator of lawsuits.
Let's consider the first point.
When AbitibiBowater missed a bond payment on March 20, there were a lot of CDS derivatives outstanding that were close to maturity. Holders of these securities wanted to have AbitibiBowater immediately declared in default so that they could collect - a delay would allow their credit default swaps to expire.
However, non-payment of bond obligations generally does not become an actual "default" for several days (because the company is given a few days to come up with the money). Moreover, AbitibiBowater obtained a court order allowing the bond payments to be suspended while the company completed its debt restructuring. Thus, the CDS holders (to a value of about $500 million) were out of luck.
Or were they?
An International Swaps and Derivatives Association (ISDA) ruling on March 28 allowed CDS holders (as of March 20) to claim payment through a cash-auction system, as if a default had actually occurred.
The second role that CDS holders played truly was analogous to sadistic spectators placing bets at a suicide. Bowater (which had merged with Abitibi in an over-leveraged deal just two years ago) wanted to exchange its 9% bonds in order to improve its cash flow and to remove the likelihood of bankruptcy. To do this, it needed 97% acceptance from holders of bonds maturing in 2009 and 2010. The company was only able to get a 54% acceptance - largely because many bondholders also held credit default swaps, and so would actually benefit, rather than lose, from a Bowater bankruptcy.
General Growth, a shopping center developer with $27.3 billion in debt (real money even these days) - making it the largest default in U.S. real estate history - demonstrated the darkening cloud that's hovering over the U.S. commercial real estate market. It also underscored the risks of being involved with credit default swaps.
General Growth's mortgage debt had been securitized into mortgage-backed bonds, many holders of which had also bought credit default swaps, so debt restructuring proved impossible. Credit default swaps on General Growth's vaunted Rouse unit were valued by auction on April 15, and were deemed to be worth 71% of par, so investors in them received $710,000 for each $1 million of CDS they held - a nice reward for voting "no" to a corporate restructuring.
Guess what? If busted insurance giant American International Group Inc. (AIG) was the writer of any of the credit default swaps on either AbitibiBowater or General Growth, we as taxpayers have paid the profits of the guys who forced those companies into bankruptcy.
http://webcache.googleusercontent.com/search?q=cache:fAq5x-WKpZ8J:www.philstockworld.com/search/article/farewell-america-switzerland/sites/sites/default/files/Lunch_with_Dave_090409.pdf/content/zero-hedge-petition-break-debt-habit-freeze-debt-ceiling/page/2/partners/permalink/config.xml/page/10/+president+abitibibowater+said+that+sinkings+by+swap+and+derivative+product&cd=10&hl=fr&ct=clnk&gl=ca&client=firefox-a
It's reciprocal and a pleasure if it helps.
Interesting article.Credit-default swaps traders
Credit-default swaps traders set a value of 3.25 cents on the dollar for bonds of an AbitibiBowater Inc. unit to settle derivatives linked to the newsprint maker that’s now in bankruptcy protection.
Three cents on the dollar???? Wow. HAHAHA. Well, will we pay up on this stupid deal that should never have seen the light of day in the first place? This is the burning question. Since this entire system is totally crummy, it should never had been allowed. The vast sums of corruption money that flowed like a sewer in to all the major governments on earth, to allow this system to be developed and not regulated, is many billions. But the Derivatives mess is hundreds of trillions of dollars in size!
The price means sellers of credit swaps guaranteeing as much as $1.1 billion against a default by the Abitibi- Consolidated unit would pay 96.75 cents on the dollar to settle the contracts. Eleven dealers, including JPMorgan Chase & Co., Barclays Plc and Morgan Stanley, bid in the auction, which was administered by Markit Group Ltd. and broker Creditex Group Inc.
I used to track the Markit site for this sort of information. Now, it is closed to outsiders. Like the M3 data, the guys who are messing up the systems get all the new information while we are locked outside the Cave and have to guess at what the hell is going on inside. So we listen to screams and wails.
A combination of rising defaults and shrinking recoveries that are set through the auctions mean credit-protection sellers since the collapse of Lehman Brothers Holdings Inc. in September have lost as much as 70 percentage points more than rating services estimate the debt is worth.
How can the Government do a stress test on banks if any of them hold any derivative deal contracts and counterparty deals? It is obvious, they are ALL screwed and royally screwed. There is no escape. Undoing this immense mess is like cleaning up after a motorcycle gang has destroyed a bar and then burned it down. Can’t be done.
“Clearly, if you’re a seller of credit-default swaps in an auction, you are getting your head handed to you,” Janet Tavakoli, president of Tavakoli Structured Finance Inc. in Chicago, said in an interview before today’s auction. The potential for losses because of low recoveries “was underestimated, particularly on highly leveraged companies,” she said.
‘Highly leveraged’ is code for ‘deep in gambling debts.’ People took a gamble that there would not be any defaults and the raging derivatives market that grew in leaps and bounds due to the proliferation of pirate island hedge funds getting free loans from the Japanese carry trade meant, no one would ever pay off, they all bid up and up and up!
Losses on these derivatives, which insure a net $2.6 trillion of debt, may mount as the recession that started in December 2007 causes defaults on high-yield bonds to reach 14.6 percent by the fourth quarter, from 4.1 percent at the end of 2008, according to Moody’s Investors Service.
http://emsnews2.wordpress.com/2009/04/19/derivatives-beast-ate-the-bank-tests/
In the case of revocation of cancellation. Only the SEC has the power to do it, I guess. Indeed, if proven as demonstrated previously, as ABWTQ is on Reg Thres. short list?..link below
http://www.nasdaqtrader.com/Trader.aspx?id=RegSHOThreshold
So I wonder why he does not do the job and not interfere? Does he wait until the last minute to reduce the float as much as possible so that it is cheaper for the offender. Where again there is nothing to do and everything is OK?
The system has no compassion for those who lose. Whether you're honest or faithful you are denied your rights with the blessing of the judge. Nobody can do anything, even if the injustice is blatant, the bodies can do, will not intervene because it is a small group that is injured. They intervene only when the entire system which may collapse. So! simply, we must guard forces to pass through this ordeal that we unfairly dismissed out of restructuring. It was not their intention at the beginning but in the way they changed their minds. Certainly the idea of a certain sympathy for us, as a redemption of the float is still possible, because we still have a board of high class, but I do not believe it. For my part, if I were the president of such a company, my first duty was to do so, because my loyalty to my ethics Shareholders would ensure their participation in the party with all other partners, if not, I would resign. Because, I would not be able to see the raptor handlers shortnaked triumph at the rebirth of the new AbitibiBowater. I organize myself, certainly, for they cover.
The shortnakeds are terrorists acting outside the law. They are the Al Qaeda of our capitalist system. I can not believe that everything is now party to ranks of illegality. Finally, if it's that, to past at history, our future for the justice I appear dark.
The SEC surely has still work to do on this issue?
I also wonder about the supremacy of institutions. For example, the judge's role on the process of a BK. Thus, a case of unfinished investigation, I question me whether the SEC may order the judge to stick to what the company gives him as documents and proceed with a normal output of BK. However, considering the following stage shornaked trading, like any other process that would the case of this institution (SEC), and thus force an amendment giving us justice. It's just a hypothesis, but might be unrealistic given the compexité of the problem..
It is a pleasure. I also thank you for your good comment and research. It's always nice to read you. On that note, I also think Ergo, Liz and everyone else ...... who put so much energy to this cause.
Tading surprising. I was not here today and delighted to see what happens. I also wonder what scenario can occur following the judge's decision. 1) Mr. Paterson wants, perhaps, to rally his former Shareholders, by a sort of right? I doubt it. 2) Offer to Purchase possible? I doubt it too. 3) The SEC could intervene and force an amendment following an investigation revealing a trading illegal? That would be to reinstate the shares. I can not think that this organization has close eye on what happens with the handling of shortnaked in this case. Moreover, the past has proven that the SEC is not indifferent to what happens after the crisis. Here are two excerpts from articles dealing with its mandate. Surely if that agency has a role to play, now it's his turn.
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The credit crisis may be a new victim: the credit rating agencies, which are in the crosshairs of the Securities and Exchange Commission (SEC) for a month......................Is it really the fault of the agencies? asks Alan White. Banks create complex financial products and they want to get good credit ratings. They evaluate their products and make changes until they get the credit you want. Banks and agencies were playing cat and mouse. It's tiring, but it's like that and I'm not sure that will change. Basically, the credit crisis has demonstrated one thing above all: that all participants thought only to make money ... "
Whether or not the sole responsibility of the credit crisis, rating agencies may well happen in the crosshairs of the SEC - as well as accountants after the financial scandals of Enron and WorldCom. The SEC is considering including mentoring consulting services offered by rating agencies.
"The primary role of agencies is to grant credit ratings," said Vincent Delisle. If you're there to give you a note and sell the game plan to get this note, it can seem like a conflict (of interest). It is therefore not surprising that the U.S. wants to act gendarme. "
Moody's and Standard & Poor's did not return The Press Business yesterday to comment on new initiatives by the SEC.
The more understandable financial info
Even with your statements under the eyes, you do not understand your investments? The SEC wants to help you. Yesterday the U.S. stock market Constable has launched a broad debate on the understanding of the financial information disclosed to investors.
The agency commissioned the University William Lutz, both securities lawyer and professor of English at Rutgers University in New Jersey, to provide a report on the issue before the end of the year. "This could mean fewer forms causing confusion and, finally, useful financial information that investors can understand," told reporters the SEC Chairman Christopher Cox.
http://lapresseaffaires.cyberpresse.ca/economie/200901/06/01-683765-les-agences-de-notation-dans-le-collimateur-de-la-sec.php
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Fairfax to the rescue
On the same subject
* The "mini-Madoff Florida went to the police
* Arrest of New York financier suspected of fraud
Sophie Cousineau
Press
There was the pulp producer SKF Pulp last year. There was the newsprint giant AbitibiBowater spring. And this week was the turn of the toy maker Mega Brands clinging to the lifeline of $ 64 million launched by Fairfax Financial.
The "magnanimity" of Fairfax Financial is well known in Ontario, where we spied the smallest gestures of this Toronto-based company and its boss, Prem Watsa. But in Quebec, this champion of companies in distress remains unknown.
That's the trick of Fairfax, whose leaders fled the cameras and microphones.
It was not too long, leaders in Fairfax did not grant an interview. That is why Prem Watsa is invariably presented in the Toronto press as a secretive man and even reclusive - a falsehood, according to his colleague Paul Rivett, who described him as very sociable.
But the only way for an investor to have the hour was to attend the annual meeting of Fairfax. Even today, the company listed on the Toronto Stock Exchange and NYSE makes no financial target, just as it organizes the promotional tour for institutional investors.
However, Fairfax has changed her mind two years ago after a series of setbacks. Indeed, as Fairfax was trying to be discreet, as it hit the headlines.
Fairfax collects insurers and reinsurers in Canada, the United States and elsewhere, as in India and Jordan. Since this is essential for commercial insurers, these firms are little known to the general public.
In 2007, record year, Fairfax has cashed a net profit of $ 1.1 billion on a turnover of 7.5 billion.
In 2005 and 2006, however, we do not give money to Fairfax. The company that invests in companies in distress felt herself problems and had to resort to selling some furniture.
The Securities & Exchange Commission (SEC), the stock market watchdog in the United States, also assigned Fairfax and Prem Watsa to appear as part of an investigation into reinsurance products non-traditional (the Finite Reinsurance in English) that are as easy to understand Chinese characters. This survey aimed thirty insurers in the U.S. - is the one that led to the departure of Hank Greenberg of AIG - still prevails. But already, Fairfax had to restate its financial results.
This has made many analysts say that Prem Watsa no longer deserved its old nickname of "Warren Buffet of the North".
57 years old, Prem Watsa is a self-made man. Born in Hyderabad, India, the businessman who immigrated to Canada in 1972 at the suggestion of his father, a schoolteacher who encouraged him to join his brother in London. This chemical-engineering graduate of the prestigious Indian Institute of Technology undertook an MBA at the University of Western Ontario. He financed his studies with jobs menu, including the sale of air conditioners.
Prem Watsa began working in 1974 to Confederation Life Insurance Co., and he never left the world of insurance and investment since.
In 1985 he bought Markel Financial, a small insurer in trucking who lacked cash to stand on its own. Two years later, he renamed Fairfax (for fair and friendly acquisitions). The small insurer yesterday today over $ 19 billion in its coffers.
That is why Prem Watsa leaves no one indifferent. For some it is a financial genius who was able to reinvest with spiraling premiums insurers in Fairfax. For others, his reputation as a great financier is overrated.
These have almost been right in Fairfax betting on the fall of his title. But Prem Watsa has cons-attacked in the summer of 2006 with continued spectacular $ 6 billion in New Jersey against SAC Capital Management and other hedge funds. Fairfax alleges that these funds have orchestrated a campaign to undermine the financial community in Fairfax. According to the company, these funds would have intimidated the leaders, even to harass the woman, the secretary and the Anglican minister Prem Watsa. This case preposterous - one respondent claimed to be acting under the orders of the FBI! - Has not yet been heard.
Fan club of Prem Watsa has expanded considerably over the last year. That's because Fairfax, who likes to go in the opposite direction of the market, felt the credit crisis coming.
In his annual letter to shareholders in 2003, Prem Watsa warned investors against the unbridled use of unregulated derivatives. "We are seeing losses for insurers in North America who seek higher returns by buying or guaranteeing commercial paper backed by auto loans, home loans and credit cards, loans that may be in default if the economy is deteriorating, "he wrote.
Fairfax, he added, avoided investing in companies highly exposed to these chemicals. "It's a disaster in the making!" He wrote five years ago!
From words to action, the company acquired default swaps, derivatives that increase in value over the underlying business is in financial distress. When the credit crisis erupted, their value has skyrocketed.
Fairfax has sold $ 1.4 billion swaps acquired at a cost of 436 million for a net profit of nearly $ 1 billion. However, it still remains for 679 million (market value at July 25).
The other reason why Fairfax is admired, it is the returns on its investments.
For 15 years, the equity portfolio of Fairfax shows an average annual return of 19.5% compared to 10.4% for the S & P 500. Fairfax has also distinguished itself with its bond investments, with an average annual return of 10.1% over the last 15 years, compared to the annual yield of 6.5% of the index of U.S. corporate bonds from Merrill Lynch.
With returns like these, Prem Watsa could claim a huge severance payments, similar to those in the financial sector. But her salary rose to $ 600 000 last year, and that everything he touched.
Since 2000, Prem Watsa was going to a performance bonus and a pension plan. For this businessman, the controlling shareholder should only be rewarded by the appreciation of its shares. Prem Watsa has a 9.7% stake in Fairfax, but controls 47.6% of its voting rights.
That may be why we forgive Fairfax certain investments that are wincing even finished his fans. The lot are 350 million investment in AbitibiBowater, a producer of newsprint still crumbling under the weight of its debt.
Fairfax advocates an approach based on the value and claims to the U.S. investor Benjamin Graham. "If newspapers are declining in North America, it is different in Asia. And then, the company's assets were worth more than the price we pay, "explains the vice-president Paul Rivett. (We could join Prem Watsa, who was on vacation.)
Anyway, Fairfax remains very cautious because Prem Watsa is convinced that the North American economy is not out of the woods, about 80% of funds in Fairfax are placed in safe money market securities.
"Like all investors who favor the approach value, they are easily seduced by junk (junk), says financial analyst Tom MacKinnon of Scotia Capital. But in the grand scheme of things, when it was over 18 billion to invest, these investments are almost a trifle. "
http://lapresseaffaires.cyberpresse.ca/opinions/chroniques/200901/09/01-692321-fairfax-a-la-rescousse.php
Interesting article that sums up the problem. Everyone knows, but who can stop this demagoguery. If the judge Carey, it will be a big step towards humility of respect for justice.[color=red][/color]
These patterns that benefit us.
Jean-Guy Dubuc
La Voix de l'Est
When Barack Obama decided to limit to $ 500 000 the salaries of presidents of the banks that helped his government, the Republicans have dealt themselves socialist. Socialist! In fact, Bush could no longer withstand an economic crisis, the scandalous abuse of notorious abusers. In addition to receiving a salary of several millions of dollars and stock options in favor of big bosses pay themselves bonuses of 5, 10, $ 20 million by leaving their company sank. Their boards of directors, composed of "accomplices" who eat in the hand of the chief to get similar benefits, could not resist: they awaited the return of lift.
Clearly, these patterns are laughing their shareholders. Naively, they have invested some of their savings by giving them confidence to executives concerned with their personal wealth rather than the other nest egg. The shareholders were powerless because ignorant. They have done shamefully wrong.
With us, the examples are well known for failing to cite them again. Just look at the AbitibiBowater paper claiming 100 million of government ... while giving the President a golden handshake of 17.5 million U.S., added to his salary of 7.5 million obtained recently. All this for driving his company into a disaster!
The problem is universal. Britain, France, the Netherlands, Scandinavian countries have already established a regulation limiting these injustices. The United States began, first by cutting the salaries of presidents at the head of the banks that receive government help. Obama pledged during the election campaign, to implement other measures to eliminate the worst abuses. First objective: to compel transparency of companies that benefit from their plot secret.
In Canada? It really is time to take action. Although the Harper government has accustomed us to take the train often late social measures essential to a society concerned with justice. But what?
Yves Michaud, the founder of the Movement for education and defense of shareholders (MEDAC), described in the style he is known, such remuneration as "pharaonic, excessive, Himalayan, offensive, indecent! His suggestion to bring these directors more accountable to a vision: that all income in excess of one million dollars is taxed at 90%. Phew! What's left? Surely there are less drastic means to achieve reasonable steps, without driving away talented managers.
First, a basic principle: reward positive results that benefit shareholders, remove any gratuity for penalizing the negative results. Say that this is an act that "makes sense". Logically, one can start with that.
In a number of countries, listed companies have begun to take a vote "advisory" to their shareholders regarding executive compensation. You say: "advisory" does not oblige anyone. Probably not: if the result is released, it will surely raise awareness among investors and the market condition. Transparency pays off.
Several large Canadian companies say they support the principle, among other banks. Those who do not accept companies are majority owned by a family. The situation is more delicate. But one can imagine that the social pressure to follow suit.
In fact, it is to correct the excesses of capitalism that penalize those who maintain it. In its current evolution, capitalism has proven that it needs reform. This may be the right side of the crisis: it will clean up a system that treats all too well the ablest despising others.
The author was president and publisher of The Voice of the East in 1988-89.
What it is. The MM or Shortsnaked have until 23 to cover themselves, and the company will negotiate with its old shareholders.
My conclusion on the facts. The judge can not make a decision on FRAUDULENT TRADING on ABWTQ which is on a RED LIST of the SEC for that fact. Thus, they are under MONITORS (naked shorts). What are monitors? They cover to create some legacy! If not, make an affirmative decision on illegality of such trading would be a nonsense. Must be INVESTIGATED by the authorities concerned in this case.
My conclusion on the facts. [b[color=red]]The judge can not make a decision on fraudulent trading on ABWTQ which is on a RED LIST of the SEC for that fact. Thus, they are under MONITORS (naked shorts). What are monitors? They cover to create some legacy! If not, make an affirmative decision on illegality of such trading would be a nonsense. Must be investigated by the authorities concerned in this case.[color=red][/color]
Big post. The judge can not give permission to the company to cancel their shares because it had a fraudulent trading which we are the victims. Finally, if there are institutions that have to do their job in this system, it's the SEC. They have no choice, they must ordered the company to reinstate theirs shares and identify the culprits. Justice must now speak.
As announced in RA #2008-027, the Securities and Exchange Commission (SEC) issued further guidance to protect investors against "naked" short selling:
AbitibiBowater Resolves Objections to Restructuring
November 18, 2010, 5:58 PM EST
More From Businessweek
By Michael Bathon
(Updates with noteholders’ claim in sixth paragraph.)
Nov. 18 (Bloomberg) -- AbitibiBowater Inc. resolved most of the remaining objections to its restructuring plan, paving the way for the company to exit bankruptcy by shedding about $7.2 billion in debt, lawyers said.
AbitibiBowater reached an agreement with Aurelius Capital Management LP and Contrarian Capital Management LLC, noteholders of its Bowater Canada Finance Corp. unit, Kelley Cornish, an attorney for AbitibiBowater, told U.S. Bankruptcy Judge Kevin J. Carey today on a hearing conducted by phone in Wilmington, Delaware.
“We have been successful in resolving confirmation objections,” except for issues regarding a $387 million claim made by Fairfax Financial Holdings Ltd., Cornish said. The noteholders argue that the claim stems from a fraudulent transfer and shouldn’t be allowed.
AbitibiBowater, the world’s biggest newsprint maker by capacity, sought bankruptcy protection in April 2009 after U.S. lenders refused to accept a proposed debt restructuring. In court documents, the Montreal-based papermaker listed $7 billion in assets and $9.5 billion in debt as of March 31. Sales were $4.4 billion in 2009.
AbitibiBowater, Aurelius and Contrarian agreed that if the company wins approval of its reorganization plan at a Nov. 23 hearing, stock worth $743.6 million will be reserved to resolve both of the noteholders’ disputed claims, according to court papers.
Bowater Claim
The noteholders say they have a claim of about $620 million against the company’s Bowater Inc. unit for guaranteeing the 7.95 percent Bowater Canada notes. Bowater Canada, or BCFC, also has a claim against Bowater for about the same amount under Nova Scotia law, according to the noteholders, who seek recoveries under the claim.
AbitibiBowater will escrow $2 million to put BCFC into insolvency in Canada and wind it down. Court reorganizations for the unit in the U.S. and Canada will be dismissed.
AbitibiBowater has 22 pulp and paper mills and 26 wood- products plants in the U.S., Canada, the U.K. and South Korea. The company was formed in October 2007 by the merger of Abitibi- Consolidated Inc. and Bowater Inc. in a stock transaction valued at about $4.8 billion.
Fairfax bought $350 million in convertible notes issued by AbitibiBowater, and guaranteed by Bowater, in April 2008. Proceeds from the notes were used to stabilize the Abitibi side of the company, which was “teetering on bankruptcy” following the merger, court papers show.
The noteholders argue in court papers that the transaction was fraudulent because “Bowater did not receive any direct consideration in exchange for guaranteeing the Fairfax bonds, and there is compelling evidence that Bowater was insolvent.”
AbitibiBowater defended the guarantee, saying it preserved cost savings and other benefits of merging the companies. Allowing the Abitibi side to file for bankruptcy would have cost Bowater about $200 million a year, the company said in court papers.
The case is In re AbitibiBowater Inc., 09-11296, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--Editors: Stephen Farr, Michael Hytha.
To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
I dont think, because in this case, Abitibibowater, the battle has been delivered to blow fiercely argument. Now is a great case of conscience and justice. Thus, the decision belongs to the honesty of the evidence and whether the judge has a doubt on the validity of the POR, it shall so invalidated. I have a good feeling it will be because it seems much incoherent.
For my faith in justice, I think, and especially in this case because the baitaille was well done. In short, to win in life, you have to fight. Our freedom has been won, because our people believed in his convictions. Justice is the legacy of freedom. Thus, as the soldiers of the armed sharehoders feels betrayed by the rejection of their commanders that they obey those who pay their weapons. When nobody screaming injustice its path continues, but it screamed so loud that people can read in the newspapers as the article today, so the battle has reached that point where we must evaluate the validity of this argument, and that, any lawyer would look bad if it promotes a poor consensus.
It is a great article, which is a tribute to Henry and all of you who have succeeded in raising the journalist. Having noted the call for justice for Shareholders by market manipulation and extravagant bonuses managements, particularly in restructuring (BK) is a precedent and shameful. To date all the help received the Shareholders in this unhealthy climate, in despite all efforts possible communication we encountered a wall of ignorance and bad faith on the part of the company.
Hoping that the judge does not bless a suchplan unjust, unfair and outrageous for honest investors who have faith in the fairness of the capitalist system and its institutions.
AbitibiBowater still awaiting restructuring OK after court hearing adjourns
A A A - text size
Thursday, 18 November 2010 - 3:41pm
By Ross Marowits THE CANADIAN PRESS
MONTREAL — Insolvent newsprint giant AbitibiBowater’s restructuring plan still awaits U.S. Bankruptcy Court approval after Thursday’s hearing was adjourned until next week.
A telephone hearing with lawyers for the Montreal-based company and a number of creditors is scheduled to resume Tuesday.
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AbitibiBowater spokesman Seth Kursman said it’s unknown when the judge will finally rule on the plan.
“We continue to make progress and still anticipate emerging this fall a stronger, more sustainable company,” Kursman said in an email.
Creditor Aurelius Capital Management told the court that some of its objections to a revised plan have been resolved.
Court approval has taken longer than had been forecast.
The American court began to examine the restructuring plan on Sept. 24, a day after the Quebec Superior Court gave its blessing.
The Delaware-based judge has to weigh the Montreal-based company’s desire to re-emerge as a lower-cost forestry products producer against the objections of some creditors.
The judge has also received written submissions from AbitibiBowater shareholders and others accusing the company of undervaluing assets, withholding recoveries from asset sales and pushing an overly generous management compensation plan.
“Confirming this plan will set a precedent for other companies to treat shareholders in this manner, which may very well undermine the confidence people have in this process,” wrote Dr. Henry Romero in a letter to the judge.
A Texas shareholder accused management of enriching itself by several hundred million dollars while ignoring the interests of ordinary stakeholders.
“We have placed our lives, our savings and support into this company over the years only to seem them blithely toss us to the side without even talking to us,” he wrote.
The proposed incentive plan would pay out millions of dollars to senior executives, with CEO David Paterson receiving the largest payout.
AbitibiBowater filed for protection in April 2009, some two years after it was formed from the 2007 merger of Canadian and U.S. newsprint companies.
The long restructuring process has cost AbitibiBowater hundreds of millions in professional fees for lawyers, accountants and others.
In the third quarter, its lost US$829 million as restructuring costs more than doubled to $731 million from a year ago.
A majority of AbitibiBowater’s creditors in Canada and the United States approved the restructuring plan in September, but Bowater Canada Finance Corp., a special purpose subsidiary with no operating assets, failed to win approval and may be excluded from the restructuring.
The company has sold about $1 billion worth of non-core assets, including a power generating facility in Quebec, and idled or permanently closed several paper mills.
AbitibiBowater said it hopes to earn more than US$1.5 billion in net profits over the next four years as it emerges as a lower-cost producer better able to absorb market and currency fluctuations.
The company has cut 6,000 jobs and dramatically reduced its paper and wood capacity by shutting down mills as it prepares to exit creditor protection. As of the end of March, it employed about 11,900 people, mostly in Ontario and Quebec.
AbitibiBowater produces newsprint, commercial printing papers, market pulp and wood products at 23 pulp and paper mills and 30 wood products operations in the United States, Canada, the United Kingdom and South Korea
http://fftimes.com/node/238239
MOR. ABITIBIBOWATER INC. - 8-K (Filed: 05-11-2010)
http://app.quotemedia.com/quotetools/showFiling.go?webmasterId=500&name=ABITIBIBOWATER%20INC.:%208-K,%20Sub-Doc%202&link=http%3A//quotemedia.10kwizard.com/filing.xml%3Frid%3D23%26ipage%3D7226311%26DSEQ%3D2%26SQDESC%3DSECTION_EXHIBIT%26doc%3D2&cp=on&type=HTML
Probably the shortnaked. Because save the shortnaked in this saga would be immoral and hypocritical simplistic to the commonality of investors who believe in the ethical market whose rules are supposed to maintain the balance of trading by the laws governing abuse. In the case of Abitibibowater, it is clear that there has been a shorsnaked ILLEGAL, and even denounced by imminent man as George Soros screaming against this approach The guilty are not us but them is clear and realistic. It's time this stops demagoguery.
Thus, the capitalist system should strengthen its ethics rules so that excessive abuse of unscrupulous manipukateurs violate the rights and the rule protecting sharesholders and communities against excessive speculation.
Actually, The system is made a such way that the culprit is one who have no money. Thus, as money attracts money, those that handles it, catch the award. So strong of the logic of this system, the culprits are us, and our punishment will be, to be wiper. Thus, the company will leave washed of its debts and without the bad old sharesholders that we are.
All a system, and again we must be thankful, because, in Iran, we would have the hand cut. Because is what they do for thieves (culprit). We need a good laugh ... lol ...
Hoping that this exercise will serve for elites of our society for a world best. Thank you all, that I love much .
Richard Garneau is mentioned in this article.
Posted November 5, 2010 at 11:38 AM | Updated November 5, 2010 at 11:38 AM
The committee needs more time
Dolbeau-Mistassini) The warden of the MRC Maria-Chapdelaine, Jean-Pierre Boivin, prefers to await the arrival of new executive AbitibiBowater before the committee "Integrated Complex" presents its recovery plan. An expectation that could be costly, because the fate of the paper mill facilities could be played fast. The plant could be sold or dismantled at the end of the judicial process of the multinational in a few weeks.
That's what he said on the sidelines of a press conference to talk about his record after one year in office. He hammered the committee had many scenarios on the table, but no specific plan was ready.
The prefect is not able to give a precise date for a possible meeting. "We will do so as soon as possible," he promised, but implying that the committee is not prepared to table a concrete project. He still needs time. "If we had a phone call next week, we would not be ready," he conceded.
He was unable to say clearly whether the committee has a viable plan on the table. He mentioned that Forintek will analyze the different scenarios and will propose a solution to restart the plant.
"The company will put all the pieces together and offer us the best solution," he said. The prefect think it will be wiser to wait until the new chairman of AbitibiBowater is appointed. Rumours suggest that this would be Richard Garneau, from Saint-Prime. The warden hopes he will listen carefully to the concerns of middle dolmissois.
However, CEO David J. Paterson did not mention that he was considering leaving. The new board appointed in September will begin to serve as AbitibiBowater will emerge from the judicial process in the next few weeks. Furthermore Paterson and Richard Evans as chairman of the board, it is composed of four Quebecers (Pierre Dupuis, Richard Garneau, Alain Rheaume and Michael Rousseau) and Richard Falconer, Jeffrey Hearn, Sarah Nash and David Wilkins.
A hearing is now before the judge on the U.S. creditors. The judge will take several days to render its decision on the restructuring plan. Then the company will have a period of fifteen days to bring an appeal if it deems necessary.
The plant will not be heated
The AbitibiBowater spokesman Pierre Choquette, confirmed that a decision be taken on the future of the facility by the end of the judicial process in the next few weeks.
"I can not prejudge the decision of the new board, but in other closures paper, we have either sold or dismantled or facilities," he said.
Pierre Choquette reiterated that the company would not pay for the plant heating this winter. Boralex finds herself trapped. The company owns the cogeneration unit must heat the paper with steam if it wants to be able to produce electricity, because the necessary equipment for CHP are in the paper.
The fact that the plant is not heated this winter does not worry unduly the prefect Boivin.
Casual observer
The warden does not hide that the committee "complex integrated" does not have much power over the decisions of the forest industry. He said he will never give up until all possibilities of reopening will be analyzed.
The''game''is not over. It is clear that it is not we who decide. We play cards with them (AbitibiBowater), but no one game can not have put as we want, we did not in our game, "he illustrated.
It is clear to Jean-Pierre Boivin that the recovery plan must demonstrate that he is profitable in the short, medium and long term. "We are in a world where it's money that talks," says he lucidly.
He says his attitude has helped keep the doors open at AbitibiBowater. He does not condemn all for the harsh tone may have had the mayor Georges Simard several times to the company.
"He played great role in this. This is not true that the medium must be let go and give up, "he defended.
The warden believes that with the adoption of the new forestry regime, the media will have greater power over the allocation of timber that could prevent closures like the paper.
I saw that there was rumor of a new president.
AbitibiBowater - Parasites
To see the hardness of this article, it is clear that the world wants the guilty to pay for the misdeeds of the restructuring of the company. The company in its plan decided that it was the old sharesholders. But a little later in the article have said that it is the fault of DIRIF following the merger of 2008.
------------------------------------------------------------------
AbitibiBowater - Parasites
Jean-Robert Sansfacon August 30, 2010 Economic News
A week ago, AbitibiBowater announced the permanent closure of two paper mills, one in Ottawa and another in Dolbeau-Mistassini. Neither the authorities nor workers, nor the committee members to survive who are racking their brains to save their plants had been notified of the decision delivered by a simple press release. In the case of Dolbeau, the paper mill was the sole breadwinner of the major industrial region. Unless we find something else to produce than paper rival, the very survival of the region is at stake
This lack of good manners typical of the direction of AbitibiBowater is even more shocking that this is a company that operates our forests a hundred years, taking advantage of cutting rights and exclusive agreements with more than generous and the Hydro-Quebec provincial government. Even after near bankruptcy and have placed under court protection last year, the company was entitled to a loan guarantee of $ 120 million from Quebec.
Still on a ventilator, AbitibiBowater will soon present its restructuring plan to its creditors, including its own employees who are owed millions in severance payments, contributions to the pension fund, etc.. By closing Gatineau and Dolbeau, without waiting for the return to normal, it bypasses the usual rules and saves a lot of money on the backs of its employees.
The paper industry is undergoing a major crisis, but in the case of AbitibiBowater, the company itself is responsible for his troubles have heavily indebted by multiplying the purchase price very high during the decade. When the crisis occurred in 2008, it had to close the less profitable plants and fire 6,000 employees to cut costs.
In Newfoundland, the closure of the Great Falls so shocked Premier Danny Williams that he has passed a law to expropriate the cutting areas, dams and paper mill. At Bay Street, we shouted to socialism, but as Newfoundland became a province claiming his rights, is that Ottawa has agreed to pay $ 150 million to AbitibiBowater after being prosecuted under the free trade agreement Trade Agreement (NAFTA).
Although it no longer produces paper in the Lac Saint-Jean, AbitibiBowater will still holds more than 80% of stumpage exclusive and refuses to let any of the competitors either resume its facilities. Contrary to Newfoundland, our own government of Quebec does nothing to protect his family.
How long will he endure elected behave in servile matchmaker these social parasites that are AbitibiBowater this world?
http://www.ledevoir.com/economie/actualites-economiques/295234/abitibibowater-les-parasites
The American dream does he not become an illusion destroyed by shortnaked. By handling our right to happiness and prosperity are virtually zero in such an economy where the rules are violated by those who have one goal infamous ruin and rob the middle class. It's ridiculous to see that their power, they put, governments, at their knees and govern companies in their own way. The money masters have strategic weapons that are powerful bonuses, market manipulation and political influence. How do you stop? If this is not the omnipotence of American justice that they stop, I see none.
Finally, the Judge Carey must have proof beyond a reasonable doubt that the company and handling are clean, to say yes to this plan. If not, he should seek the help of Examiners.
Finally, may God enlighten and bless all honest people in this file and save America from the wild speculation. The reign of cupididité has given way to that of justice.
We are people of freedom, and by this model, the laws should serve only one master, THE JUSTICE.
Market manipulation = Economic Dictatorship.
The danger of this trend is important not only ruin small investors, but also of our capitalist system to the detriment of the very powerful are getting richer. I do not know if this is the case of our company, but the (MM) and shortnaked are certain of their victory. For three or four years they sell (nonstop) and are laughing at our agony. Finally, I still have faith in justice that will make this important difference in the INTELLIGENCE of our economic system and the VALIDITY of its INTEGRITY.
Thinking of humility against the arrogance of the speculation
IT IS NICE TO BE IMPORTANT, BUT MUCH MORE IMPORTANT TO BE NICE.
Those who are still on this forum are true investors who built the company. These are not speculators or fraudsters, but honest people, who are awaiting the decision of Judge Carey on the fate of their shares. If justice is stronger than handling our shares will return to their full value. For my part, I still believe and if someone in the hall monitors this forum on behalf of the government to confirm the transparency of our rights, it will be well guided by the evolution of this great battle for justice our rights. For me, at this point, money does not matter and I consider them lost. The important thing is justice and this battle alone is worth a fortune in integrity and transparency in solidarity.
Maybe this can help you.
According to this article, following the sale of the dam Baie Comeau dam are and other assets that could be sold. This has caused concern among unions
CHICOUTIMI) The Minister for Economic Development of Quebec, Clement Gignac, ensures that the company AbitibiBowater needs no authorization from the Quebec government to go ahead with the procedure listed in Superior Court before Judge John Gascon. This relates to the network Hydro-Saguenay, which feeds the plants Kénogami Alma.
In a interview with the daily late afternoon yesterday, the Minister Gignac be assured that Quebec does not envisage a scenario where the works of Hydro-Saguenay (160 megawatts), could fall into the hands of a creditor of AbitibiBowater. Right now, the Quebec government has loan guarantees on the network as well as other assets for a loan of $ 100 million.
"This is an approach that will allow the company to conclude the deal with Hydro-Quebec for the sale of the assets of the dam McCormick Baie-Comeau. People in the business better than we could explain this approach, but it can be done without our authorization, "the minister stressed.
Clement Gignac reiterated the commitment of the Government of Quebec to inform workers of the factories concerned if ever there was to be asset transfers that involve the network Hydro-Saguenay. The commitments made in the past by the Minister Serge Simard and his colleague Claude Bechard will be respected to the letter.
The Minister of Economic Development admits that the motion filed in connection with the restructuring of the company is particularly complex. However, it is necessary to allow the paper to conclude the transaction will spend 60% of assets from the dam at North Shore in the hands of Hydro-Quebec. Which means the company which owns the Alcoa further 40% of assets in the company COPD.
Dissatisfied
Members of the Parti Quebecois in the region remained on their appetite in the National Assembly yesterday when they tried to ascertain the true intentions of the Government of Quebec on loan guarantees AbitibiBowater link with the network Hydro Saguenay.
"It is we who have provided the Economic Development Minister Clement Gignac the court document. He had not been informed of the situation "told the DAILY MP for Lac-Saint-Jean, Alexandre Cloutier.
The Opposition has tried to find out if the government did or did not intend to authorize the use of dams as assets in a loan guarantee. According to Alexandre Cloutier, Minister Serge Simard, like his colleague's Economic Development Clement Gignac, was not able to speak truth to the people.
"It is time that Mr. Gignac said the public what really happens in this case. Many people have questions and do not understand the situation, "concluded Mr. Cloutier.
Stimulus
The AbitibiBowater spokesman Pierre Choquette, has not entered into the technical details of this approach. He explained that the company would do this to free up cash that will help sustain its recovery plan.
"There is no maneuver that involves a sale of the assets of Hydro-Saguenay. The assets included in loan guarantees include factories and other properties, "insisted Peter Choquette.
The latter confirmed that the company COPD, which owns the dam at this time of Baie-Comeau, would become a subsidiary of AbitibiBowater full when the sale to Hydro-Quebec will be completed. Crown Corporation and Alcoa will form another company to manage the dam McCormick.
The result of the transaction will be concentrated in its subsidiary and when the loan will be repaid $ 100 million in Quebec government loan guarantees will be transferred to this new subsidiary of AbitibiBowater.
The parties had until yesterday to confirm 17h to the Superior Court of their intention to intervene to prevent this procedure.
The President of the CSN stationery Alma, Raynald Lapointe, still has reservations against this and did not rule out the possibility of asking an expert to go to court.
http://www.cyberpresse.ca/le-quotidien/201009/23/01-4325580-le-ministre-gignac-se-fait-rassurant.php
The Bloc Quebecois will work to safeguard all plants "
- Jean-Yves Laforest
"Never did the Bloc Québécois will jeopardize the survival of plants in operation to allow the reopening of another plant. We believe it is entirely possible to work on the revival of closed plants AbitibiBowater through new production. There is no question that the Bloc Québécois yield to blackmail AbitibiBowater dishonest! "Said the member for Saint-Maurice - Champlain, Jean-Yves Laforest, following the declaration of President lamentable AbitibiBowater, David Paterson, that the reopening of the plant in Dolbeau-Mistassini should necessarily be accompanied the closure of another factory.
Topics:
Bloc Quebecois, Ontario
"AbitibiBowater to want the cap to rest the fate of the plants on the shoulders of those who work to save them. This blackmail is particularly inappropriate for senior management and executives grant itself provide six million dollars in bonuses when the company completes its restructuring, while hundreds of workers could lose part of their pension and their unpaid wages, "denounced the MP Jean-Yves Laforest. "The Bloc Québécois Conservative government proposed several measures to address the forest crisis, including easier access to credit through loan guarantees at market rates, programs to aid in research and development for the industry to face the reality of tomorrow and creating a higher demand for wood products through a policy of using wood in federal construction projects planned in Bill C-429 Bloc Quebecois, "said Jean -Yves Laforest. "Meanwhile, the Conservatives have remained idle. Not where the forest industry would have been as critical if the federal government had implemented a real plan of assistance similar to that established for the automobile industry in Ontario. The Conservative government's inaction and its Quebec members is largely responsible for the situationThe Bloc Quebecois will work to safeguard all plants "
http://www.lechodelatuque.com/Actualites/Politique/2010-09-30/article-1810472/%26laquo%3B-Le-Bloc-quebecois-travaillera-a-la-sauvegarde-de-toutes-les-usines-%26raquo%3B/1
Nasdaq ’Threshold’ Securities for Sept. 29
By Michael J. Munoz - Sep 29, 2010 11:18 PM GMT-0400
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Attachment: Nasdaq 'Threshold' Securities (Table)
The following is a list of “threshold securities” from the Nasdaq Stock Market, published daily in compliance with the U.S. Securities and Exchange Commission’s Regulation SHO.
The list consists of stocks for which sellers failed to deliver 10,000 shares or more in the past five trading days and the level of “fails” is a minimum of 0.5 percent of the shares outstanding. Securities are listed alphabetically by ticker.
=================================================================
Consecutive Days
Ticker Security Name on List
=================================================================
ABWTQ ABITIBIBOWATER, INC. 6
AMLZF AFRICAN MINERALS LIMITED ORDIN 10
ASGLY ASAHI GLASS ADR 6
ATPT ALL STATE PROPERTIES HOLDINGS 4
BANID BANNEKER INC. NEW COMMON STOC 4
BICK FIRST TRUST ISE BICK INDEX FUN 16
=================================================================
Consecutive Days
Ticker Security Name on List
=================================================================
BLOAQ BLOCKBUSTER INC CL-A 2
CCME CHINA MEDIAEXPRESS HOLDINGS IN 3
CHNG China Natural Gas, Inc. New Co 1
CU FIRST TRUST ISE GLOBAL COPPER 8
CYRX CRYOPORT INC NEW COMMON STOCK 5
FNMA FANNIE MAE 3
FOOD VAUGHAN FOODS INC COM (OK) 4
GBBFF GOLD BULLION DEVELOPMENT CORP 8
GXEXF GEOLOGIX EXPLORATIONS INC (CAN 3
HLXW Helix Wind, Corp. Common Stock 51
LGORF LARGO RESOURCES LTD 1
LODE COMSTOCK MNG INC COM STK (NV) 11
MDHI MEDICAL ALARM CONCEPTS HLDG IN 10
MVIS MICROVISION INC (WASH) 5
NVLT NOVELOS THERAPEUTICS, INC. 3
OSIIF OSI Geospatial Inc. Ordinary S 9
PCBC PACIFIC CAPITAL BANCORP NEW 31
=================================================================
Consecutive Days
Ticker Security Name on List
=================================================================
QADMF QUADRA FNX MNG LTD COM SHS (CD 3
QMIN KENTUCKY ENERGY INC COM STK ( 13
RELM RELM HOLDINGS INC. COM 15
RFIL RF INDUSTRIES LTD 1
SCOK SINOCOKING COAL & COKE CHEMICA 36
SCPZF SPROTT RESOURCE CORP ORD SHS ( 3
SFOR Strikeforce Technologies, Inc. 4
SQQQ PROSHARES ULTRAPRO SHORT QQQ 69
STVZF SILVERCREST MINES INC 6
SWKH SWK HOLDINGS CORPORATION. COMM 12
SXRZF URANIUM ONE INC ORD SHS (CANAD 15
THMRQ THORNBURG MTG INC COM NEW (MD) 7
TRMAQ TRICO MARINE SERVICES INC NEW 11
TRXOF Terrane Metals Corp. Ordinary 6
VCIT VANGUARD INTERMEDIATE-TERM COR 3
VCSH VANGUARD SHT-TERM CORP BD ETF 1
WNWG WENTWORTH ENERGY INC NEW 4
YNGFF YUKON-NEVADA GOLD CORP 25
=================================================================
SOURCE: Nasdaq
To contact the reporter on this story: Michael J. Munoz in Hong Kong at mjmunoz@bloomberg.net
To contact the editor responsible for this story: Alex Tanzi at atanzi@bloomberg.net
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Last update: 2:20 AM ET, Sep 30
http://www.bloomberg.com/news/2010-09-30/nasdaq-threshold-securities-for-sept-29-table-.html
Just for infomation.
The other day the SGF, and now, La Caisse de depot et placement du Québecinterested in the resource sector of the forest.
-------------------------------------------------------------
La Caisse will invest more in natural resources
Posted September 29, 2010 at 11:22 | Updated at 11:22 AM
lapresseaffaires.com
(Montreal) The Caisse de depot et placement du Quebec will increase its investment in natural resources and energy.
In an interview Tuesday at the agency Bloomberg, the head of the Fund Michael Sabia says he wants to enjoy an expected boom in the commodities sector.
"We believe that natural resources and energy are areas where we can invest more aggressively in the current environment," said Mr. Sabia.
Some experts predict also an increase from 30 to 40% of global energy demand over the next 20 years.
Dated June 30, 2010, more than half the 11.3 billion that the Fund invests in the U.S. was invested in securities of energy and commodities. In Canada, it owns a stake in Gaz Métro and Suncor Energy.
After a negative return last year and record losses of 40 billion or 25% in 2008, the management style of "defensive" Michael Sabia will permit the Fund to obtain a return of 2.3% during the first half 2010.
"The defensive approach is necessary but insufficient in the long term. We also need an offensive game plan, "concluded Mr. Sabia.
According to Bloomberg
http://lapresseaffaires.cyberpresse.ca/economie/energie-et-ressources/201009/29/01-4327773-la-caisse-veut-investir-davantage-dans-les-ressources-naturelles.php
Naked Short List as of 2010-09-22 -
New to List Buyin Imminent Off List Today SqueezeTrigger Trade Signals Performance
- Listed w/
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- Listed < 13 days
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- Get SqueezeTrigger
Naked Short List as of 2010-09-22 - Stocks New to List
Report Generated on Thu, 23 Sep 2010 08:52:46 -0700
To sort stock lists, click on the header you wish to sort by.
Rec.# Symbol Days Listed $ Last Trade % Change $ ChangeColumn sorted by this icons directiion, click to reverse this columns sort order Trade Volume As Of (EST)
1 ABWTQ 1 0.018 0.003 609,393 2010-09-23 11:35:00
2 STVZF 1 1.270 -0.010 10,500 2010-09-23 10:52:00
3 TRXOF 1 1.400 -0.031 4,000 2010-09-23 09:33:00
4 ASGLY 1 10.340 -0.060 2,584 2010-09-23 10:32:00
Notice: Quotes delayed by 20min.
http://www.buyins.net/tools/short_list.php?dys=1
I can not believe that Quebec, according to the old news, AbitibiBowater will not interfere. . Thus, we want to reboot with Boralex Dolbeau, surely that Tembec would be very interested to replace AbitibiBowater. Hmmm! I do not want to create false hope, and thus, Quebec speaks of a stake in the new AbitibiBowater??
Published September 16, 2009 05:00 AM | Updated September 16, 2009 05:00 AM
And if Quebec AbitibiBowater bought?
(Quebec) The idea that his quiet little way. The government of Quebec could become a significant shareholder of the AbitibiBowater paper. Good or bad business? Let's see.
In recent weeks, union representatives AbitibiBowater discussed this possibility. There is talk of a joint venture that would be conducted by the Societe Generale de Financement (SGF), Caisse de depot et placement and the paper mill workers.
However, it appears increasingly that the Charest government has no choice but to intervene. In Quebec, AbitibiBowater is especially become indispensable. We speak of 7500 workers, including about 3,500 directly in its nine newsprint mills and nearly 4,000 others in its 22 sawmills.
Indirectly, they are close to 20,000 jobs (suppliers, subcontractors, etc..) Depending on the paper. This is not nothing. In addition, we must add some 9,000 retirees Quebec affecting a weekly pension. An annuity which could also be reduced by a third over the next few months if nothing is done.
Thus, after giving financial assistance (loan) of $ 100 million to AbitibiBowater, the Quebec government is now on the list of creditors of the company.
Reeling from a huge debt of nearly U.S. $ 8 billion, AbitibiBowater has been placed in April under the protection arrangements with its creditors. Not enough income, too much debt. The results are catastrophic.
In sum, the paper has just generated a turnover of approximately U.S. $ 6 billion a year, she fails to pay its bills on time.
Most financial analysts consulted by The Sun believe that Quebec should play caution in this matter. Here, no question of announcing his colors too quickly.
Because in return for targeted investment and strategic AbitibiBowater, the Charest government will reserve the best assets of the paper on Quebec soil. Thus half of AbitibiBowater could fall under the control of the Quebec state.
But beware. The central message of this operation remains that the "nationalization" of AbitibiBowater will be temporary. The hundreds of millions of dollars in financial assistance (referred to between 300 to $ 400 million to nearly 50% of new shares in the company) will be returned to the pockets of taxpayers in the next five years.
Before arriving there, however, AbitibiBowater will first make his spring cleaning. We are talking about plant closures and abandonment of old lines of production unprofitable.
This brings us to the main markets of AbitibiBowater or newsprint and lumber.
As is seen, the decline in newspaper circulation and changing reader habits (including migration to the Web) generate an annual reduction of about 10% of the demand for newsprint.
In this context, it is thus clear that the restructuring of the paper will go through other closures of newsprint. Between April and June, this sector has also posted a revenue decline of 44%. On June 30, the paper has suffered a loss from operations of at least 19 cents for each dollar of sales of newsprint. The market already evokes an overcapacity of production of 2 million metric tons annually.
As for lumber, an industry source believes that AbitibiBowater has no choice but to dispose of about a dozen plants. Some could be sold to local cooperatives, other players of the industry on the rise. It is believed by Arbec belonging to the rich Saputo family.
And workers in all this? Far from being ignored, they will have to be active. Because in return for participation in the "new Abitibi, they must also accept salary sacrifice important in opening their collective agreement.
And this is where the role of the state will be important. The workers whose plants have been "sacrificed" might be tempted to start their own cooperative business model. In the lumber sector, new opportunities (roasted wood, treated wood, cellulose material, ethanol, etc..) Offer more avenues and interesting.
As is seen, the ball is in the camp of the Charest government. The Quebec government can not scroll, too many jobs are at stake "laissez-faire is not an option. What's good for Ontario's auto sector must also be in Quebec in the forestry sector.
http://www.cyberpresse.ca/le-soleil/affaires/actualite-economique/200909/15/01-902185-et-si-quebec-achetait-abitibibowater.php
The SGF will increase its investment in the forestry sector. Just for information.
Published September 18, 2010 05:00 AM | Updated 05:00 AM
Possible merger between SGF and Investissement Quebec: the new entity could be in a difficult position
Gilles Gagné, Freelance
Sun
(Carleton) The possible merger between Societe Generale de Financement (SGF) and Investissement Quebec could put the merged entity in a difficult position with regard to the lumber industry since the FMS controls 100% of the firm Temrex Gaspé.
This company is the largest producer of lumber in the Gaspe. It has an annual supply of public and private 500 000 cubic meters, a volume that will focus entirely on the New sawmill shortly. It directly employs 160 people.
Potential conflict of interest?
The future duet FMS-Investissement Québec will continue to receive requests for support from companies competing Temrex. Is there any appearance or potential conflict of interest, as leaders and analysts Temrex financial demands evolve within a single entity?
The Minister of Natural Resources of Quebec, Nathalie Normandeau, said that the issue is relevant but it is reassuring regarding the events.
"The new Crown corporation to hold harmless against any appearance or any conflict of interest," responded the Minister responsible for Gaspésie, which intends to bring the matter to the attention of his colleagues hold an economic portfolio. "I am not worried."
It states that the presence of SGF-Rexfor alongside Tembec sawmill in two Gaspé was a necessary intervention to prevent a complete closure. SGF has doubled its control in Temrex a year ago to become the sole shareholder. Tembec wanted to retire.
"This is an exceptional situation, but it is temporary," says the Minister. The President of the SGF, Raymond Bachand, said Sept. 3 that the public company will sell at least part of its interest in Temrex when she has recovered its losses.
Different divisions
Sébastien Roy, General Manager of the Forestry Cooperative Association of St. Elzear, a lumber company could apply for funding for future FMS tandem-Investissement Québec in the margin of his proposal to manufacture building panels, believes that 'there will be a way for the new entity to avoid placing themselves in conflict of interest.
"Even merged, both entities continue to have subsidiaries, I think. There will be two divisions, two missions, one for equity holdings, one for loans or loan guarantees. They merge to save costs in management, "Roy sees
http://www.cyberpresse.ca/le-soleil/affaires/les-regions/201009/17/01-4316819-eventuelle-fusion-entre-la-sgf-et-investissement-quebec-la-nouvelle-entite-pourrait-etre-dans-une-position-delicate.php
Humm! Premarket 0.028
ABITIBIBOWATER INC Nasdaq -42.389999 0.00 n/a
Most Recent Trades
Time Price Change #Shares Buyer Seller
09:10:20 0.028 0.0005 10,000 0 0 0 0
I have a good presentiment, with all the latest positive development taking shape for AbitibiBowater and evidence of abuse to protect its Shareholders on the part of management. that merely a single arg, THAT IS USUAL IN BK, ELIMINATE SHAREHOLDERS. Yes, it is simplistic to see the ease and arogant to vote BONUSES over
$200 million, the judge will probably be difficult given their full blessing.
Very good reading. If the judge never gives a reason for old Shareholders of AbitibiBowater to have a equitie. There is a big risk for the shortnaked. Big game coming.
Thank you all for your work over each other. The important thing is to Resort The injustice behind the image of manipulation.
200 million in bonuses to executives.
The Charest government AbitibiBowater lets be generous with its management employees taking advantage of the concessions wrested from its workers, accused the Parti Quebecois. Yesterday, the PQ critic François Rebello attacked Quebec's decision to allow the multinational spread over 10 years contributions to cover the deficit of $ 1.3 billion in its pension plans. He said the government should have accompanied the relaxation of the rules of the obligation to grant shares to pay the pension funds of employees.
He recalled that the AbitibiBowater restructuring plan confirmed by a significant reduction in pensions for workers, but provides "a generous compensation program for executives."
According to the Member for La Prairie, the 550 beneficiaries of this plan could collect up to $ 200 million. "It's clearly too generous. And it does not even identify which leader is right. It could end up in the pockets of a handful of people. "
He recalled that the CSN union center and the Communications, Energy and Paperworkers condemned the granting of bonuses of $ 6 million to fifty frames.
François Rebello argued that he should command the decency to wait "at least two years to pay" these bonuses related to the restructuring plan. "When they have started selling newsprint at a price that makes sense and they make a profit, we can say that they are entitled to the premium.
"Overall, our pension funds, stop fooling around," he concluded. We must structure our business to not be fooled. When companies are in trouble, that's when he must put the proper conditions. With the agreement yesterday, we will end up with journal articles where we will [one day] from the CEO of AbitibiBowater with $ 30 million in his pockets and we will be outraged by this.
http://www.cyberpresse.ca/le-soleil/affaires/actualite-economique/201009/15/01-4315999-laxisme-envers-abitibibowater-dit-le-pq.php
IT's a very great Motion. I hope that justice will enforce our rights. Big Thank you.
What is interesting is to see how the prediction of recovery have changed since only the month of June. It now plans to triple. Therefore, the possibility of recovery is very strong for this company that says it wants to remove its old shares as is usual in BK
AbitibiBowater projects net profit of about $273 million in 2011. The balance sheet overhaul is expected to trim its interest expense and, along with improving demand, it expects its net profit to rise to about $423 million by 2014
http://money.canoe.ca/money/business/canada/archives/2010/06/20100608-110651.html