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Corporations file chapter 7 all the time. If they had every intention of this being a liquidation, then they should have filed chapter 7. Sounds like their intent. Bet they wouldn't have gotten their bonuses if they did.
Hope so. They really want the company, plus they are shareholders also.
I can see that happening today, maybe more.
I know. It will trade until the company emerges from bk, and there is a resolution for the shares. I have traded them.
So you are saying companies are not allowed to file chapter 7, only individuals?
Good buy! We will see.
Stii here also. Wouldn't be suprised to see pps rise rest of day.
Yes. PPS bouncing back. Who knows what will come from this. Definitely no authority figure has states shares are cancelled.
Doesn't make sense to me, but everyone is treating this like a ch 7 liquidation. We really need to hear something directly from both or either companies.
Why did file ch 11 insead of ch 7, if they were just going to liquidate? I do not understand this. Ch 11 is for re-organization, and re-emergence, which looks like it will survive under the Wanxiang umbrella. Do not know how they will handle the stock, until POR is approved.
Did it have something to do with executives receiving bonuses?
Yes. I want to see more details from a reliable source.
Exactly right. We will not know the final disposition of the shares until a Plan of Reorganization is approved by the judge, and it will be detailed in the plan. To my knowledge, a POR has not even been submitted.
What we do know is that Wanxiang has won the bid on the portion of a company they wanted badly, and that they already own shares in as well. No one knows for sure what will happen going forward. If they say they do, they are speculating and, or lying.
Yes. That is a good point, that it is transferrable. I would think it would make it even more attractive. I am suprised that the pps is not going up even more today.
Yep! Fixing to get very interesting, I think! This was the type of news i have been waiting on.
Doesn't matter to me as long as it is good for the stakeholders......
News released at 2:06 PM from Rueters regarding auction: Looks very positive to me.
http://www.reuters.com/article/2012/12/06/a123-bankruptcy-auction-idUSL1E8N66MD20121206?feedType=RSS&feedName=bankruptcyNews&rpc=43
The auction is not in open court. Only the debtors and qualified bidders. She will be there on the 11th, when the results are announced.
Regarding, your PM's, I understand. I do not trust everything I read on the boards, I was just responding with what I had read. I am disappointed that the price hasn't held up better, but we will find out soon enough if this will pay off.
Good investing to you.
HybridTrader, received your message. Sorry, I cannot PM you back, but the 465 million was to purchase 80% of the of the company. I do not know why, but the deal was not made. Do not think the details were made public. This was prior to the bk filing by a month or two, I think.
I am not sure if the contracts would be transferred along with the technology when purchased. However, I do not think their customers have too many options of suppliers to choose from, though, and some of them will most likely be bidding.
Thanks. I know I am correct about the JCI offer being for the automotive portion only, and the 465 million dollar wanxiang bid for 80% of the company. I have read that several times.
As far as the speculation about how much it will bring, I am just basing that on the wanxiang bid, and the fact they have made it no secret they want the company, and there are other bidders interested as well.
I do not think this will be a low ball, pennies on the dollar liquidation. There are no guarantees, but why dump now, when we are this close to finding what the results are? There is a chance we could be left with nothing, but I believe there is a very reasonable chance we could end up with at least approximately $0.30 up to over a dollar, depending how the auction goes.
All of this in my humble opinion. Good luck to you as well.
That was for the automotive portion only, not the whole company. I think the whole company will go for more than 580 million. That would be what the company would potentially be worth to Wanxiang, who offered 465 million for 80% of the company a few months ago.
Maybe they decided they better stop bottom fishing and get in before it is too late.
They way I read it, it was payments that were made 90 days prior to the filing. Guess they have to see if there is anything questionable about someone getting preferential treatment by getting paid when others were not.
Also, lists $'s paid to the insiders. Looks like all or about all of them has received bonus's in addition to their salaries. How in the world they could earn bonus's is beyond me, especially the executives. I saw one signing bonus of 125k. Hope he is worth it.
No dilution allowed once bk is filed. Outstanding shares are not allowed to be increased during the process. So, we do not have to worry about that.
Seems as folks are biding their time. They know the auction is not until December, so maybe they think they have time to get in.
That might work, however, there a couple things that could throw a wrench in those plans. Someone decides to buy alot of share at one time, which would drive the price up, or if something was leaked about the potential bids, or the offer(s) that have been made for the whole company, such as the one made by Wanxiang last Wednesday night before the hearing on Thursday.
If the latter happens, this will go straight up to that offer price, and it will be too late. I may be a little early, but I would rather be early and be in, than be out, taking a chance, and miss out on what is almost assuredly is an exponetial gainer, imo.
Yep. I have seen the ones you mentioned. I basically held CEMJQ for about 15 months, riding the dips and rises. These can be great opportunities.
I think AONEQ can be one of them, and it should be resolved in about a month, instead a year and a half. At least they won't be burning through the cash for 15+ months in bk.
Guess we will see over the next month or so. We may be adding it to the list of should have bought more, held, etc.....
They ended up getting shares of the emerging company, CHMT. I think it was equal to approx .25 per share. Way down from the high, but considerably higher than the lows. That whole process took almost a year and a half though, and they burned a lot of cash on legal fees. That is who really won the CEMJQ bk, is the attorneys.
I did not hold through until the end, but fairly close to it. That year and a half offered many pps fluctuations also, and many debates on IHUB about the real value. IMO, the shareholders deserved more, but the debtors attorneys made sure that didn't happen. Those investors who went through it, knows exactly what I am talking about.
I agree with you about volatility and knee jerk reaction to the Q being added, but I believe .12 -.14 will be considerably low. I think the possibility of strong bidding drives this exponentially higher.
Not arguing with you. We are on the same side here, but I just see it going higher in anticipation as auction draws closer. I am looking more to approx .50.
CEMJQ went from .03 to 1.78 as they sold assets during their bk process. Not saying AONEQ is the same, but they definitely have value. Otherwise, everyone would be lowballing, which I do not believe will happen. Wanxiang won't let it. All, IMO.
I respect your opinions and read your posts.
Thanks,
LB
Even better. They will not get it for any lowball offers.
Yes, they tried to steal it. Wanxiang was not going to sit by and watch that happen, thus the filing of the objection. Then a few days later, jci relents as the dip financier. They knew what they were trying to do.
The weeks up to the auction will be very interesting, and if there are any leaks of intended bids, it will be too late to get in then. Pps will shoot straight to that price in no time. I am holding. It is worth much more to these bidders, IMO.
Btw, the owner of wanxiang is worth aprox 2.6 billion. You think he will be outbid easily after all they are going through to try to get the company.........
Wouldn't suprise me, but I was trying to be cautiously optimistic.
They are definitely wanting the company and seems to be trying to buy them outright before an auction.
With the way they are going at it, what are the odds they submit any lowball bids if it goes to auction? I think slim and none to ensure they are the high bidder.
Good, thanks. I must have missed it.
Wanxiang buys entire company for approximately $1.00 share, would be my answer to your question.
"Wanxiang told Delaware Bankruptcy Court Judge Kevin Carey on Thursday that it had sent A123 a confidential proposed bid on Wednesday night for the entire business." This was included in the 2:57 PM news release from Rueters concerning the court proceedings.
I did not see this mentioned in the twitter feed this morning.
If somehow, they had to disclose that offer, we would know about where we stood. They are not making it any secret that they want this company.
They were willing to pay $465 million for 80% of the company a few months ago. Even if they dropped the offer to half, the company is worth exponetially more than where the shares are trading now.
What if the offer were to be leaked somehow? Stock would fly in no time, imo.
Don't know, but you would like to think they would do what is best for the company and it's stakeholders, one of which is US Taxpayers.
Symbol is now CHMT. They emerged from chapter 11. I was in the stock. I am sure others here are aware of it.
Yep. I think they are saying 30 days, but would be worth that to get a good offer. Probably why JCI doesn't want to extend the date. Take out the competition.
CEMJQ, a prime expample. Went all the way to $1.78, with the Q attached, by the way.
I think it was closer to $465 Million, and it was just for 80% of the company at that time. They said they had to reject the offer due to some issues that the company could not adhere to.
Have no idea what those issues were, but may have had something to do with the technology being acquired by a foreign company. Just speculation of my part.
But to answer your question, yes, they were offering significantly higher pps than where it is trading now. I would think at auction, they would bid enough to make sure they acquire the company, and it looks to me like it would be more appealling to sell the company as a whole to the court. No breakup costs.