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Yes. In reality, these don't represent enough of the outstanding shares to have a huge impact on the price, imho.
These are non-dilutive and generally considered to be part of the issued and outstanding stock. The notes at the bottom of the filings indicate some of the shares are restricted for 1 year, the remainder vest over a longer period.
That's not entirely correct. Stock market is open/bond market closed on Columbus Day.
That's what I'm thinking, too
I get it! I'm not someone who posts much anymore...so you'd have no reason to trust me.
I relayed exactly what was told to me by Klug.
He may well be considering that! There's so much that can't be asked or answered...but he did volunteer that for timing and reiterated,as they previously announced, that the quarter would show revenues.
Fyi...just spoke to Darcy Klug. The numbers are in from UK operations and they are preparing the filing. He was unsure whether it would be tomorrow or Monday.
Hi Motba,
Shorting is playing the other side of the house...betting on the stock price going down, as opposed to going up.
The way that happens is that you "borrow" shares and sell those borrowed shares, pocketing your sales proceeds, just like if you had a stock that you decided to sell...your profits are yours at the time you sell. However, since you didn't own the stock you sold, you eventually need to cover.
Hence the "short squeeze".
Whereas going long caps your losses (you can't lose more than what you invested) and gives you unlimited gains, going short is the opposite. You know upfront that your maximum gain is (sell at $2, cover at $.00, for example) however, your losses are unlimited.
I know this is very basic, but I hope this helps!
Ilene
I hope you're right!
Ilene
I don't share your degree of certainty. Here's how I look at this filing:
In addition to triggering the Apple payments, the BK filing triggered an automatic default on $434 million of Sr. convertible notes, and now reflects a common share price that dropped from $17.15 on 9/8 to approximately $11 when the BK was announced, to today's closing of $.52.
That's alot of skin in the game, just to get Apple to move. At least, I think so.
Ilene
At this point, playing the game is all we got :)
Well said,
Ilene
I think you're right. It was a tactic...but I would caution that we don't know everything yet. In fact, I'd bank on that. If they just wanted to squeeze Apple, they could've gone another route.
Just me thinking out-loud.
Ilene
Hmmm...interesting hairsplitting Xena.
They have applied for protection under the bankruptcy laws, to reorganize. One would presume that unless the protection of the BK court was needed, they wouldn't have taken this step. Whether it turns out to be a tactic to shed debt, or whether they are technically bankrupt, the effects of filing for BK protection are enormous...but, I yield to your definition.
Ilene
The stats are very clear on what happens to commons in the majority of BK cases, and that is that they have no value and eventually cease trading. Those that make it through are big for shareholders, but they are a very small minority.
No...just lots of investment management and corporate BK experience :)
Ilene
Very true....they've employed or given notice to employ some very expensive representation and restructuring experts!
Ilene
Yes, you're right on liabilities and proceeds.
And on the bankruptcy staying in place.
I suspect we'll see continued choppiness in trading, and perhaps even a successful re-org, shareholder-wise, depending on what other business they have. The creditors know what's in the sealed docs, and may be more inclined to shift some of the debts so that a re-org'd GT has a chance. However, any pop tomorrow is pure "irrational exuberance" since the market simply doesn't have enough financial information to make informed decisions.
Ilene
They do. In the post I first responded to, the liabilities were already reduced.
Ilene
Thanks :)
Experience borne of sitting in too many bankruptcy proceedings...but still, just my opinion.
Ilene
They do. I'm suggesting, that based on the difference between last year's plant assets and this year's, that they may have reported it as an asset. I don't know what else accounts for the huge jump between the two years.
Ilene
They carried the AZ plant and furnaces as assets, so conservatively (and based on the Aug 8-k, if you look at the difference between this year and last year), you probably need to reduce assets by 400 million. And, it looks like they carried the withheld payment as deferred income, so assets need to be reduced by an additional 140 million. I suspect that if and when they file full schedules of assets and liabilities, that they'll be roughly equal.
Ilene
Certainly possible. The price wants to move up, but unless someone comes out of the woodwork to buy a debt laden company, sans tangible assets, I don't see it staying there. But the speculation is almost always enough for price movement...as long as you're not the last one standing when the music stops.
The judge approved their request to fast track this SALE, which means two things: one, there will be no Plan of Reorganization, since they aren't reorging. Two, it will happen quickly. The auction is set for August 21, with a hearing to approve the sale to happen fairly quickly thereafter.
Lemonis already has a track record of buying a bankrupt company and taking it private. That's what he did with Dippin' Dots. You can draw the erroneous (IMO) parallel between this and American Airlines, but the two are nothing alike. AAL had tangible assets, an ongoing business which they reorged and merged. They are wildly profitable, at this point. CRMBQ has no real assets...they own no equipment, since all of their goods were baked off premise, and no real estate. Lemonis wants to capitalize on the name, the locations (some of which he'll re-open) and the recipes.
Will this provide trading opportunities between now and when the sale is finalized? Sure. But ultimately, this one goes to zero.
All in my opinion, of course :)
thanks :) news trumps all in this business, that's for sure!
yes and yes, probably. trips will be close, although it may bounce around here until more is known about time frame surrounding the liquidation.
IMHO
Ilene
no. your initial investment is still the purchase amount, and whatever the number of new shares and subsequent price when you sell is your sale amount. capital gains are taken on the difference, just like a non-merger situation. forget the number of shares or the name change...total dollars in vs. total dollars out.
disclaimer: not a CPA or accountant, but was a financial advisor for 24 years.
Ilene
Ahmed,
POR is not out. The hearing to approve bidding procedures is scheduled for this week, 2/20 at 9:30AM.
There is a stalking horse bidder...but anything can happen at an auction.
Ilene
I heard you this morning and thought you were brave and awesome. You couldn't see how much you made the Debtor's counsel squirm when you kept asking about proceeds and when those would be discussed and acknowledged.
In all BKs, and this is no different, creditors take haircuts. Hence, the previous objection to the Cash Collateral Motion, and the allowance of objections, specific to that motion, to be allowed up until 12/26.
Re the shareholders, if you looked at the financial statements, which I know you did, you see 2 entities that hold almost 20% of the common. No doubt, these are also creditors, so their common shares are a strategic holding, but with rules in place in BK for how holders of 5% or more are restricted from trading, my guess is they still have these shares. Not to mention that I don't think there have been enough shares traded for them to have been disposed of.
KG, I understand the pain of BK of substantial holders. When I was on the Wamu case, I met people with over 2Million in losses. Many well intentioned investors are caught off guard by a BK filing and take huge losses.
Don't hold for a miracle, Ken, but watch for the peaks and valleys that will happen here. If I'm right, here's what will happen...there will be a run up from current prices, a substantial run up, which some will think means that commons will get paid. Its when the large shareholders will dump and maximize their holdings.
There are other things you might look at here, but this is not the forum...please find me on FB at Delaware Shareholder Services.
Ilene
see you tomorrow hawk!
Kg, I am not saying that anything will be left over, but there will be deals made for the debt owed, and there are some subsidiaries that are not part of the BK, according to the docs filed.
The fact, of course, is that the price is near the low here, so the market is speaking on its own.
In most cases, as you know, the commons are toast in a BK. That being said, I find it interesting that more shares haven't traded on the news, and know that there are always trading opportunities.
It is rare that there aren't surprises in a BK case, and at this point, with the hearing tomorrow, caution is warranted.
absolutely! see you from court tomorrow
I would be cautious until more is known tomorrow. Today's action shows the uncertainty. If you pull up the Financial statements submitted when they entered BK, you'll find that a large number of the claimants have no dollar figure attached...meaning that its difficult to assess how far the 120M will go...
Ilene
Savient Reaches Agreement To Sell Substantially All Assets To Crealta Pharmaceuticals
BRIDGEWATER, N.J. and GLENDALE, Wis., Dec. 11, 2013 /PRNewswire/ -- Savient Pharmaceuticals, Inc. (NASDAQ: SVNT) ("Savient") announced today that it has reached agreement on the terms of an acquisition agreement with Crealta Pharmaceuticals LLC ("Crealta") through which Crealta would acquire substantially all of the assets of Savient, including all KRYSTEXXA® assets, for gross proceeds of approximately $120.4 million. The agreement was reached following an auction conducted pursuant to bidding procedures approved by the U.S. Bankruptcy Court for the District of Delaware (the "Court"). A hearing at which Savient and Crealta will seek the required Court approval of the sale is scheduled for Friday, December 13, 2013.
According to the terms of the acquisition agreement, Crealta will purchase Savient's pharmaceutical portfolio, which is highlighted by the chronic refractory gout drug KRYSTEXXA®. KRYSTEXXA® is a novel biologic product that was designated as an orphan drug by the FDA based on the relatively small patient population with refractory chronic gout ("RCG"). KRYSTEXXA® is a PEGylated uric acid specific enzyme, or uricase, that has been shown to dramatically reduce uric acid levels for many patients suffering from RCG.
"We are thrilled to be able to acquire KRYSTEXXA from Savient, thus ensuring the continued availability of an important therapy for patients suffering from what can be a debilitating condition," said Ed Fiorentino, Chairman and CEO of Crealta. "Crealta is committed to providing education and support to patients and their health care providers so that KRYSTEXXA can continue to be used safely and effectively. KRYSTEXXA represents the type of product that Crealta strives to deliver to patients, namely specialty products addressing significant health care conditions. We believe this is a meaningful step in Crealta's journey to becoming a leading specialty pharmaceutical company."
The transaction is subject to certain closing conditions, including approval from the Court and the termination of the waiting period under Hart-Scott-Rodino. Upon the completion of the sale, Savient's previously announced agreement with US WorldMeds, LLC and Sloan Holdings C.V. will terminate in accordance with its terms. Additional information, court filings and other documents related to this process, is available through Savient's claims agent, the Garden City Group, at www.gcginc.com/cases/svnt or 866-297-1238.
Crealta was established in August 2013 in partnership with GTCR, one of the nation's leading private equity firms.
Skadden, Arps, Slate, Meagher & Flom LLP and Cole, Schotz, Meisel, Forman & Leonard P.A. are serving as Savient's legal advisors, and Lazard is serving as its financial advisor. Kirkland & Ellis LLP is serving as legal advisor to Crealta.
YW! See you from court on Friday.
Aaack! Just realized I had put wrong date, right time. I was in court today on Fisker. SVNTQ's auction started today, but is closed to outsiders. The hearing is actually on Friday 12/13. I will be tweeting then, live from court. So sorry :(
Underestimated by many...except those that have them! I'm hoping to get to Chicago early 2014, hoping beyond hope that there's a thaw. Stay warm and safe.
Rockie! You know I don't do price/financial speculation...its enough I've said I think they see something by mid year...
Happy Holidays :)
Thanks Denny! Nice to see old friends :)
I feel as though the cover is about to be lifted here, although its my gut and my experience leading me...no knowledge of an actual event.
Now, if the snow would stop, I could get to court for the Fisker hearing :(
As you know Yellow, the money to pay the LTI comes from the various settlements and is paid in order of the waterfall. I believe that there will be enough to begin to pay the classes towards the bottom of the waterfall within the first two cycles of 2014. There is money already in the Lit. Trust, but the Trust is set up to retain a certain amount of money in it, and pay out quarterly any money it has over a set amount. Again, my calculations may be off and I readily admit this is my opinion, only.
Ilene
Happy Holidays to you, too! You know I hate to speculate, but I believe by mid-2014, money will flow to those classes and lower. Don't hold me to this...this is just my read of how quickly money will come into the Lit. Trust and when it will flow out. And I might well be wrong...time will tell :)
Ilene