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I'm surprised that anyone would actually use a direct comparison to Smithfield.
In Win for Buffett, Judge Approves Examiner in ResCap Bankruptcy
"Morrison & Foerster LLP's Gary S. Lee, a ResCap lawyer, said an investigation already being conducted by ResCap's official committee of unsecured creditors should be sufficient and that an examiner would amount to "two identical investigations into exactly the same issues."
But Judge Glenn agreed with a Berkshire lawyer and the Justice Department's bankruptcy watchdog that the Bankruptcy Code is very clear that an examiner should almost always be appointed when requested.
"I don't think I have unbounded discretion to turn down an examiner motion," Judge Glenn said.
Mr. Lee pointed out that some of the investors represented by ResCap's very own creditors committee are the ones who bought some of the unsecured bonds Berkshire sold in the days after it asked for the examiner."
http://online.wsj.com/article/SB10001424052702303703004577474802295412424.html
Berkshire sold its unsecured bonds.
"... on June 5 and 6, 2012, Berkshire executed trades and sold its holdings of unsecured bonds issued by Residential Capital, LLC ("ResCap")."
http://www.kccllc.net/documents/1212020/1212020120607000000000013.pdf
Reddy Ice Prearranges Bankruptcy
Packaged-ice maker Reddy Ice Holdings Inc. is in the final stages of preparing to file for Chapter 11 bankruptcy protection with a plan to hand ownership to a hedge fund holding the company's debt, said people familiar with the matter.
http://online.wsj.com/article/SB10001424052702303815404577332153959715014.html
9. Class 9: Old Common Interests
a. Interests in Class: Class 9 consists of all Allowed Old Common Interests of
the Debtor.
b. Treatment: The legal, equitable and contractual rights of the holders of Old
Common Interests are Impaired under the Plan and will receive no recovery. If Class 8: General
Unsecured Claims votes to accept the Plan, and the General Unsecured Reserve (which shall include any
Cash contribution permitted in Article III.E.8(b) above, excess Cash from the Miscellaneous Secured
Reserve, and excess Cash from the Cure Reserve) is adequate to provide a distribution of at least 85% to
holders of Allowed Class 8: General Unsecured Claims, then on the Effective Date, or as soon as
practicable thereafter, each holder of an Allowed Class 9: Old Common Interest shall elect to receive in
full satisfaction, settlement, release, and discharge of, and in exchange for such Interest and on the terms
and conditions set forth more fully in the Plan either: (i ) a Cash payment of $0.15 per share; or (ii) subject
to Article V.D hereof (providing that no fractional New Common Stock shares shall be issued or
distributed) such holder’s Pro Rata share of Equity Consideration; provided that each unit of Equity
Consideration shall not be separable, so that the New Common Stock and the New Warrants comprising
such units shall not be separately conveyed. In the event a holder of an Allowed Class 9: Old Common
Interest holds less than 2,500 shares, such holder will receive a Cash payment of $0.15 per share; and
provided further, however, that to the extent a holder of an Allowed Class 9: Old Common Interest elects
or otherwise receives the cash payment of $0.15 per share referenced above, such holder’s Pro Rata share
of the Equity Consideration shall not be issued to such holder. For the avoidance of doubt, if Class 8:
General Unsecured Claims votes to reject the Plan, the holders of Class 9: Old Common Interests will
receive no recovery.
http://www.kccllc.net/documents/1108348/1108348120209000000000004.pdf
Skadden's report to the Special Committee "calls into serious question the accuracy of payments allegedly made to the Debtor by various customers or the sales allegedly made, transactions the Debtor is reported to have engaged in with related parties owned by Mr. Chen which have not been supported, and suggests that sales are vastly overstated."
"... not only is the Debtor violating the absolute priority rule by distributing assets to existing equity under Class 9 and the New Management Incentive Plan, it is asking creditors to bear 100% of the risk associated with the DOJ investigation as well as any other government claims that may be asserted."
http://www.kccllc.net/documents/1108348/1108348120124000000000001.pdf
A number of creditors would disagree...
Oaktree is in the house for all of it...
In consideration for its equity investment and, pursuant to the Plan, the contribution of the outstanding obligations under the prepetition Amended and Restated Credit Agreement, dated as of May 6, 2011, as amended, by and among the Company, certain of its affiliates, and certain affiliates of Oaktree, including OCM Marine Investments CTB, Ltd., as the initial lender (the "Supporting Oaktree Lender"), Oaktree and/or the Supporting Oaktree Lender will receive 100% of the shares of equity in the reorganized Company (the "Reorganized Equity") which are outstanding immediately after the effective date of the Plan...
http://biz.yahoo.com/e/111221/gmrrq.ob8-k.html
Might have to wait a while ...
"General Maritime’s $300 million in 12 percent notes due in 2017 traded at less than 2 cents on the dollar today, a 66 percent decline from 6 cents on Dec. 8, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The notes traded at about 10 cents when the company filed for bankruptcy on Nov. 17."
http://www.bloomberg.com/news/2011-12-15/general-maritime-reaches-agreement-with-creditors-on-75-million-loan.html
"As of today, the plans collectively had about $8.3 billion in assets to cover about $18.5 billion in benefits."
http://www.pbgc.gov/news/press/releases/pr12-08.html
I believe that's unsecured.
"Holders of the Fort Worth, Texas-based company’s unsecured obligations will likely recover 10 percent or less of face value, Bill Warlick, an analyst at Fitch, wrote today in a note to clients."
Investors are cautioned that they could lose some or all of their investment as a result of the Plan and the Chapter 11 Cases described above. The Plan provides for no recovery by holders of equity interests and does not contemplate a determinable recovery, if any, by holders of the Senior Notes.
... (v) all existing equity interests (including common stock, preferred stock and any options, warrants or rights to acquire any equity interests) in the Company will be cancelled
http://www.sec.gov/Archives/edgar/data/1443799/000114036111054212/form8k.htm
As a result of the
Equity Investment and the Equity Conversion, on the effective date
of the Plan (the “Effective Date”), the Plan Sponsor will own 100%
of the reorganized equity in the Company (the “Reorganized
Equity”) ...
(f) Holders of Equity Interests in Corp. – All existing equity
interests (including common stock, preferred stock and any
options, warrants or rights to acquire any equity interests) of
Corp. will be cancelled.
HearUSA Announces Agreement for Sale of Assets to Siemens
http://www.marketwatch.com/story/hearusa-announces-agreement-for-sale-of-assets-to-siemens-2011-08-01
Kyle Bass' Hayman Capital Management, L.P. disclosed an 8.4% ownership per 13G.
Look at post# 147