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Indeed, Jest! Hope all is well with you, as well.
Ilene
Or the lack of transparency surrounding the sale, since the bidders stay well hidden until the actual sale/auction. And, of course, the auction is closed to outsiders.
I agree.
Hi all!
Not sure if this was already posted. If so, I apologize for the repeat. (Taken from the KKR site)
Cheers :)
Ilene
KKR typically seeks to make private equity investments in businesses with strong franchises, attractive growth prospects, leading market positions, and the ability to generate high returns on investments. The companies in which we invest are often in transition—positioned for new growth or in need of reorganization or enhanced focus. We also have the resources and expertise to provide growth capital, form partnerships with entrepreneurs, and create joint ventures or public-private partnerships. Our ability to be flexible allows us to pursue opportunities in emerging markets where attractive investment opportunities may require an investment approach other than the traditional buyout.
However, no matter the transaction structure or size, our approach remains the same. We strive to work as partners with the management teams of our portfolio companies, become deeply involved in the operations of our businesses, and harness our global partnership and internal capabilities to drive results.
Thanks!
Didn't see anything when I looked at the docket again this morning, but will certainly be posting anything that I find between now and the hearing.
Ilene
I'll be tweeting live from Bankruptcy Court tomorrow starting @9:30AM. Come join in!
Find me on Twitter @DelShareholder.
Bitcoin, the virtual currency that stimulates as much excitement as fear, hit a new all-time high above $270 this week, breaking the previous record of $266 set in April. That April high came right before a crash in the virtual currency. ConvergEx Group's chief market strategist Nicholas Colas thinks this time investors can look into bitcoin's future and read the new high as a sign of its establishment, rather than a signal of one more looming crash.
The catalyst for the April bubble was an "overwhelming tulip-bulbish demand for bitcoin," Colas wrote in a note to clients, demand that exchanges couldn't keep up with. "Accounts froze or moved very slowly, and confidence in the currency dropped, along with the price." Since then, bitcoin developed "a lot more infrastructure to be a useful global currency," Colas wrote.
"Back in September computer science researchers from UC San Diego showed that it was actually fairly easy to track individual transactions in the bitcoin transaction ledger. Just this week, academics at Cornell proposed that bitcoin could eventually be co-opted by a handful of 'miners' who could hijack the system."
Bitcoin may have no central architecture, but in the time since the crash, the virtual currency's de-centralized architecture has increased in speed dramatically. Bitcoin "miners"—people who lend computing power to process Bitcoin transactions in exchange for a small bitcoin payment—were previously just hobbyists using personal computers. Today, bitcoin mining is a full blown ultra-competitive industry utilizing networks of computers with specialized hardware and the speed shows. The magnitude of speed across the bitcoin network has increased almost 80,000 times in speed since earlier this year, according to IEEE.org.
Additionally, mainstream merchants are slowly adopting bitcoin, replacing the void left by Silk Road's demise. The currency has even made steps into the physical realm, with ATM manufacturer Robocoin launching the first bitcoin ATM in a Vancouver coffee shop.
Barry Silbert, SecondMarket founder & CEO, discusses the launch of its newly-minted Bitcoin Investment Fund, which is a digital currency-focused fund for institutional and "sophisticated" investors.These recent improvements reflect the steady rise in the bitcoin exchange rate, which Colas stated "actually has little to do with how much bitcoin is worth, but what it might be good for."
Many investors are thinking the same way. China is now home to the largest bitcoin exchange, but demand is still growing worldwide as well. Within the U.S., private share exchange Second Market is a major contributor to bitcoin demand. "There's no way to know how much Second Market has purchased on behalf of its clients," Colas wrote, "but it must be a popular offering—the banner ad on their site for the trust occupied the top third of their front page."
Colas argues that a crash like in April may be less of a concern as bitcoin matures than a broader and more damaging play for control of the virtual currency by a small group of traders. "Back in September computer science researchers from UC San Diego showed that it was actually fairly easy to track individual transactions in the bitcoin transaction ledger. Just this week, academics at Cornell proposed that bitcoin could eventually be co-opted by a handful of "miners" who could hijack the system."
Who is using bitcoin, in addition to the growing demand from China and Second Market?
ConvergEx offered some ideas:
•The obvious: "Tech savvy people, who by their nature and high-functioning professional skills tend to have a few shekels lying around? Yep—classic early adopters."
•The Ron Paul flock: "Then there might be independence-minded older white males in the U.S., ticked off by the Federal Reserve and government in general. Yes, they like the story as well."
•The nefarious: "And then there are the criminals—drug dealers and so forth—who might not know a creation myth from crystal meth, but appreciate the potential for secrecy."
•The one percent: "Offshore millionaires from essentially anywhere in the world, looking for classic diversification and a liquid investment. All you need to access your bitcoins is that long alphanumeric key and a local bank account which links to a 'Wallet'—an online repository to hold the currency. Deposit money in China, write down the key, fly to Monaco and go into an Internet café. Easy-peasy."
—By Roy Luo, CNBC Digital news intern
Thursday 11/7/13 10:37AM
Anytime, Garyst. Always lurking... :)
Ilene
Coupe,
Hope springs eternal with the Q's especially, because when commons stay intact, there is a huge payday...its difficult to let go, I guess :(
The time frame issue is one of the most unfair, to me, in all of the BK rules and procedures. It is totally unregulated, and up to the company to pull the shares. AONEQ traded for months after BK confirmation and new owners in place. MFGLQ ceased trading almost immediately after resolution...there is no time frame, so unless you are nimble, I generally advise to stay away once the confirmation process is complete...just too much of a risk, IMO.
Ilene
Gary, I don't see much tangible evidence that current shareholders will be issued shares of new stock, unfortunately. In my opinion, the US Trustee's office raised good points in their objection, and I was unhappy to see such little merit given to them. As stated in the confirmation order, the Debtor will have business going forward, but only three classes (creditors) will receive new shares.
Hope I'm missing something, but I think this is beyond speculative as an investment at this point.
Ilene
Not exactly the whole story. Remember to take into account the "wash sale" rule with the IRS that deems certain transactions do not create a loss, if they are within 30 days of having bought a substantially similar (or in this case, exact) holding, either before or after the loss was recorded.
Not paying attention to this rule can result in many more gains than you think you have, so be careful.
Ilene
I agree, your wife is a lovely gal!!! Please say thank you.
Ilene
My pleasure! Happy trading :)
Hi again, Jehu. There are large shareholders working behind the scenes, but nothing has yet been formalized, or even requested of the court. I'm not sure what will happen ultimately, but when I first started talking to shareholders re an EC, the stock was at $3...so I'm not sure that Seeking Alpha had the best advice at the time. In the end, they may be right...too early to know how this will play out, IMHO.
Ilene
His decision is final...unless, there is fraud alleged and provable...then there is a 180 day window to vacate the BK decision.
In the POR, the stated intention is to issue new stock, but not have it publicly traded. My belief is that this is because it will be wildly profitable and they don't want shareholders to see just how profitable they'll be...but that is just my belief.
Ilene
yes it was...
Z,
First, let me say that I am not an attorney, but I have been involved in corporate bankruptcies for over 3 years now and have become knowledgeable in how they work and what makes for good arguments. So, with that caveat, my instinct is your second choice makes a better objection, because there is a demonstrable cause and effect...and now numerous and successful high profile court cases to support it.
Ilene
Thank you! Good to see you here, too :)
Ilene
great! how about the address of the court and the info to send objections?
no prob!
POR stands for Plan of Reorganization.
I'm not usually on here...
find me either twitter #DelShareholder
or facebook Delaware Shareholder Services
Ilene
Mike,
Its the deadline for any party to submit objections to the POR. I generally refrain from making price predictions, sorry...
Ilene
Not stated...hence the bankruptcy...but look at the economic conditions of the past few years...and moving forward...
Here is a place to see all the docketed information on the case:
http://www.kccllc.net/PMI
Here's the link to their original A/L statement:
http://www.kccllc.net/documents/1113730/1113730111223000000000002.pdf
Ilene
Danny,
Somewhere within the last few days I've posted the information here...can someone sticky?
In the interim, here is the info:
District of Delaware Bankruptcy Court
824 Market ST N
3rd Floor
Wilmington, DE 19801
In re The PMI Group, Inc., Case No. 11-13730 (BLS)
Ilene
Danny.
A petition is not the way to go...submit objections to the Court.
Ilene
Great question! There are likely other parties that may object to the POR, but in order to reserve your rights (as the Judges see it) shareholders have to be a visible presence on the docket.
Whether or not the confirmation is derailed as a result of shareholder involvement is only part of the question...but the answer to your underlying question is that its possible that the POR will be confirmed, regardless.
Ilene
at this point, trading opportunities are the reality...there will be swings, at least that's the typical pattern.
the DS hearing is often predictable...but, as you saw this morning, presents good opportunities to scare and be scared out of stock...and to purchase more at bargain prices, if you want.
Ilene
Correct, Victor. With enough good arguments and reasonable financial analysis, it is certainly possible to get the POR denied. One month to get ducks in a row.
Ilene
DS was approved. Important deadline is July 9 @4PM. This is the deadline to object to the POR. Confirmation hearing is July 18 @11AM.
Ilene
thanks. glad to be here
Isaac,
I have been a self appointed watchdog and equity champion in the corporate bankruptcy arena since 2010, after a 24 yr career in the financial business. (check out DelShareholder on Twitter; Delaware Shareholder Services on FB)
I sit in on and tweet from as many hearings as I can go to, and have testified on behalf of equity on several occasions.
Frankly, its why I keep harping on objections...since that's what the Judges want to see if they are to give any credibility to equity and their interests.
Ilene
Yes, for the actual confirmation of the POR. This hearing is simply to confirm or deny that the Disclosure Statement meets the legal criterion...the actual plan confirmation hearing will be later (probably scheduled at today's hearing, haven't looked at the docket yet).
Then, all those, including shareholders, who oppose the POR, will submit objections...
Ilene
You might be right!
Ilene
Hi back to you! All well, ty. Not my usual update, of course, as I'm not in the courtroom...
From the uptick in the bid/ask and the time, I'm thinking the hearing is over and the DS was approved. No surprise. Now the real fight comes. This will continue to present great trading opportunities for some time here, IMO.
Ilene
Glad you are out and about again!!
Ilene
Victor,
I don't mind, although I'm going to give an abbreviated summary here. I have samples of other objections up on my FB page, Delaware Shareholder Services, and would rather help there...there are many eyes here on IHub...
Here's how the Objection should be headed:
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
THE PMI GROUP, INC., a Delaware Chapter 11
Corporation
Case No. 11-13730 (BLS)
Debtor
Objection to the Plan of Reorganization
Here's where it should be sent:
Judge Brendan L. Shannon
824 North Market Street
6th Floor
Wilmington, DE 19801
Your objection should state facts, not "its unfair" arguments.
The District of Delaware has been very receptive, in general, to shareholders' letters and objections. Be prepared to either be in court to argue your objection or to have a proxy there.
I generally suggest sending a copy to the US Trustee's office, too:
Office of The United States Trustee
844 King Street
Suite 2207
Lockbox 35
Wilmington, DE 19801
Hope this helps!!
Ilene
David!
Haven't seen you in awhile...hope you've been well.
The DS/POR calls for equity to be cancelled...nothing too unusual, right :)
Still have time until POR hearing (not scheduled yet, that I see).
Ilene