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Thanks for the quick response
How long does it take to get the shares once you tell your broker for cashless exercise?
I don't think they sold the Subs which were not in bankruptcy..
Basically, debtor has given money to subs and subs issued notes to parent company(debtor) in return. So, it seems that DIPs purchased those intercompany notes in the auction. For eg. ATP Oil & Gas (UK) Limited has assets worth $918MM but intercompany $692MM. This is basically other way to take value out of non-filing subs.
This is what I understand but migth be wrong.
According to annual report for FY 2011,ATP has already spent $492Mn on it. But since its not yet complete, dont know how much its worth
I think the auction is limited to GOM assets and does not include UK assets.
Kccllc: Document 1419 p17 (1.Property to be sold)
But $13MM (operating expense) were already accounted in the income statement. Net income of $17 MM was after taking that into account.
So I wonder, balance sheet does not reflect this net income in any way...Any thoughts??
Question:
Between Jan 2011 - Sept 2011, Biopharm earned $17.3MM. But the stockholder's equity increased only by $0.6MM. Where did the remaining money go??
Dilution should be 52.8%
Assuming 88MM share
Charlestown = 88*.55 = 48.4MM
Dilution = (48.4-4)/(88-4) = 52.8%
Also, reorganized tronox will have lower debt, without environmental liabilities and better interest rates on debt than Kronox. All this should translate into higher Net earnings.
El,
In case Ad hoc committee is formed, we should try to touchbase with Watermarke properties. They seems to have deep pockets with focus on real estate investments in Southern CA, NV and AZ area.
They might be interested in either providing:
- Refinancing Debt
- Takeover and use NOLs
- Capital infusion
etc.
Here is the website link:
http://watermarkeproperties.com/acqusitions.html
Just an idea......
On finra, I dont see 11.75 percent senior-secured notes. Does anyone know if those notes are trading? How can we check the price..
Thanks Josh. Make sense. I wanted to confirm that you were taking 14.45MM as the total outstanding stock.
Josh, How did you get 722,721 warrants to current equity holder? I could not find this number in the DS which court approved for votes solicitation.
My understanding is that current equity is getting warrants at $1.5B strike price which are convertible to 5% of outstanding equity.
Josh, Can you please point me to the location where you got this info.
Can they even trade while they are on EC. Don't they have trading restrictions?
Hi El,
I have a question. Can you please explain a little more about what happens when you sell shares after record date? If the reorganized company issue shares then will you get the shares since you had shares till record date? Also, why is stock trading >$0.30 since the record date has passed?
Thanks,
Kapil
Ah!!!Thanks boink. I missed that line in the DS.
Here is how I think that we can estimate the strike price:
According to the plan, reorganised tronox will have:
- EV:1.25B
Debt: 500MM Approx.
Oust Shares:38.5MM
So the equtiy value is 1250 - 500 = 750MM.
Price per stock will be 750/38.5 = 19.73/share
Now lets talk about the warrants.
10% at EV of 1.1B
=> equity value of 600MM (after subtracting the debt of 500MM)
if there are 38.5MM shares then Strike price would be 600/38.5 = $15.5/share.
My guess is for other warrants it should be between $17-19.
Note that these are approximate calculations just to get some rough idea about strike price.
I had the same question earlier:
I didn't understand how the DS says that the current equity will get $1.39 per share, $2.58 per share and $3.75 per share at enterprise valuations of $1.20 billion, $1.25 billion and $1.3 billion respectively.
They havent mentioned how may warrents will be issued or at what strike price and for what % of outstanding stocks.
Does the above mentioned prices(1.39,2.58 and 3.75) includes the right offering to "accredited investors" or is it to all shareholders? If it does then non-accredited investors might get much much lower recovery
Hi MadClown,
I didn't understand how the DS says that the current equity will get $1.39 per share, $2.58 per share and $3.75 per share at enterprise valuations of $1.20 billion, $1.25 billion and $1.3 billion respectively.
They havent mentioned how may warrents will be issued or at what strike price and for what % of outstanding stocks.
Also does the above mentioned prices includes the right offering to "accredited investors" or is it to all shareholders?
Thanks in advance if you have any insights....
Did you note that they reduced the total debt from 500MM+ to $468MM.
Seem to me that debtor has promised not to give anything to existing equity. I think equity committee has to really step up and come out with a really good plan. I hope that they can do it....
I am suspecting that there might be some insider trading based on some news.
This is what I saw when Tronox filed its DS. Price fell hugely the day before filing.
Thanks for the wonderful news....
Sorry. I didnt understand the C/H plan?
I know that according to the second amended disclosure statement filed by Merulo, he himself said that there is $300MM worth of equtiy value. And Taylor also pointed out nearly $300MM worth of equity for the stocks.
How is Charlestown/Hartland helping the existing equity holder? We are getting no where close to $300MM worth of equity according to this plan. Either I am missing something or C/H plan is giving us nothing. Enterpising Investor, please help me understand this.
I agree that its too early for examiner and they are expensive for the debtor.
I am sure, RM knows that examiner will be expensive for the estate and he is going to be the biggest looser becase:
- He has 51% stake
- Examiner might bring out report in our favor
So this can even serve as threat to him.
Also, he is trying to take the company private. I don't think that its a good idea esp. after seeing his behaviour during the bankruptcy. Moreover if the company is private, we will have hard time pricing and selling the stock. If possible, we should push for keeping the company public even if its an extra cost to the company (for complying to SEC).
Let me know what you guys think on this.
Also, do you know any other company which is in bankruptcy and has lot of value? Any other interesting stocks?
Thanks,
Hi All, I have invested in MMPI and really disappointed by the PORs proposed by RM.
Has anyone thought about an "Examiner" for this case.
While reseraching, I came up with this article:
http://themoneyhunt.wordpress.com/2010/05/
Please read the section "Bankruptcy court adopts Madoff trustee’s method of determining “net equity”"
According to this article
If we are not able to get an equity committee appointed, we might be able to get an independent examiner appointed who can verify that the company is solvent and there is equity left for share holder.
It also says that examiners are very helpful particularly when "the debtor or its management is suspected of fraud or other misconduct"
Currently, Visteon is also undergoing thru Chapter 11 and the shareholders are not satisfied with the valuations proposed by Debtor. So they have requested for an "Examiner" and it seems that US Trustee agreed to appoint an examiner to get independent valuations.
http://www.reuters.com/article/idUSTRE63423W20100405
http://www.reuters.com/article/idUSN0517209620100505
Thanks,