Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
If our 3 new appointees don't have any experience.....at least I'll know what to expect.
Our new appointees? Does that mean your a shareholder now?
Sherm,
I think they know what they would get if they called you, and they want nothing to do with it ;)
No decision on what, an EC?
Appears that the UST is recruiting shareholders for the official equity committee.
Interesting.
Are you a member of the Ad Hoc Equity committee?
The committee to represent shareholders is already formed. Has been for a few weeks.
Get involved with what exactly?
Who's going to keep feeding the pigs for years?
Too early to tell. Primary emphasis right now is on ensuring a competitive bidding process for the US assets and ensuring shareholders have a voice in the various motions being filed. This week will be interesting, to say the least.
Morning Sherm,
No, I have not seen an estimation of the value of the Chinese assets. This is one of the next steps in the process. Don't overlook Oklahoma either, there is more value there than most seem to recognize. My $90M 'guess' is not based on anything other than a rationalization on the low end. A competitive bidding process will determine the value of the remaining assets, and that is exactly why we as shareholders need a seat at the table. The creditors won't care about the remaining assets once they have been paid- this will be our job as a committee of shareholders.
$90M would be about $1.45 a share. I doubt the China assets + Oklahoma will fetch that much, but who knows. It will be more than 14 cents though.
Without reliable financials it's a guess, but looking at previously disclosed book value somewhere around 90 million. I'd be happy with half of that. I'm holding, but I have a high tolerance for risk. You could end up with zero.
That's not a simple question. You have to evaluate whether you are willing to take the risk that the sale of assets will net a return to the equity holders > 15 cents. The interests of the secured and unsecured creditors take priority over equity, and if you make what I believe to be a reasonable assumption that the sale of the US assets will satisfy all valid creditors claims, then the proceeds from the sale(s) of the China assets is approximately what will be left for shareholders. There are about 64 millions shares outstanding, so do the math and place your bet accordingly- or take 15 cents.
Liquidmetal is not a commodity. The IP is protected by US patent. LQMT sold the IP for CE to Apple in exchange for a lump sum payment. About as straightforward as it gets.
Specifically the timing of UST/Formal EC decision. The UST won't sit on their hands if a compelling case can be made. If the case isn't compelling, and the asset sale proceeds without equity representation, then any potential recovery becomes far more elusive. We do not know about other potential bidders, which may or may not include the bvi assets. There is equity that can be unlocked with a sale of the non-US assets plus OK.
My point is that you may very well be correct, but there are many variables that you, I and others are unaware of. If someone bids $100M for the entire enterprise, there will be equity and therefore justifies the need for equity representation.
Have you made a formal request to the US Trustee's office for the appointment of an EC with the accompanying legal standards and criteria that is necessary to support it?
I thought not.
What makes you so confident that the UST won't appoint an official EC. I suppose well have the answer to that question soon enough. And, as you know, legal fees generated by an official EC are deducted from the estate not from the participants directly. Of course you can argue that shareholders are the estae, which is true once the creditors are satisfied.
Another point you may want to consider is that the value of the China assets can be established in the same way as the US assets, with a stalking horse bidder. You never know, one just might show up.
Maybe just wishful thinking.
Why would you participate in a call that was explicitly intended for shareholders? Did you advise EG that you are a shareholder, in other words did you lie?
500 shares sold to the MM with no active bid. $50 trade. Back to $.18 on the ask. Nothing to see here.
If you interested in participating, I suggest you contact the attorney at the email I provided today.
Be aware that attorney/client privilege will prevent detail from what is being addressed and discussed within the ad-hoc EC from being posted on the message boards. If you want to take part, please contact the legal firm and request to be included.
EC Legal Counsel: Rafael X. Zahralddin-Aravena <RXZA@elliottgreenleaf.com>
It does not include 'all shareholders', only those who elected to join the ad-hoc EC. At least five of these are regular posters on this MB, including myself.
So this is your bitter epilogue. Well, at least there is an established motive now.
He is trying to scare people into dumping their shares. There is no other point to his tactics. He likes to post repeatedly that the shares are worthless, but why bother? Either he wants to buy them cheap or he is ahole that takes pleasure in antagonizing people. Unfortunately there is no ignore button on this MB.
EG currently represents six shareholders. That was why I questioned EG's comment to Brazil. All EG needs, technically, is one shareholder.
Great, then share your advice on how we should proceed. I don't have BK experience, that's why I've agreed to work with someone who does. Why do you care anyway?
My advice is worth what you paid for it, but glad your sticking around. Not sure why EG would drop their efforts if you walked away though??
So you are out? The plan for the Chinese assets is to place them under the control of the shareholders. Only then can we obtain any value from an asset sale. Do what you want, but we have nothing to lose at this juncture. If an Official EC is granted, then there will be no out of pocket costs.
Brazil (are you Brazilian by the way? Half my family is from Santos, Brazil). I have experience at the C-suite level within the financial services space, and have experience working with legal teams towards defined outcomes (acquisition, takeout, forming boards, shareholders actions, compliance) but I am not a legal expert by any stretch. I also have little to no understanding of business operations in China. What I believe (take it on faith) that there is equity value here (better price for US assets, China operations) and without a seat at the BK table we will get little to nothing. IF an official EC is formed, then the costs associated with equity representation will be generated by the estate. The options, as I see it, are 1. To take what the market will give you today ~ 11 cents, 2. Do nothing and end up with nothing, or 3. Launch an offensive. I'm going with option 3. and hope that we are granted an official EC and will be able to perform discovery on the financials and allow sufficient time to realize market value for the assets. I also believe that a sale of the Chinese assets that can be structured in the form of U.S. listed equity compensation from an acquiring company creates liquidity. The Objection has been filed as of this afternoon, and the hearing is scheduled for 9:00am on Aug 1st.
It's easy to shoot holes in a plan when you haven't taken a position or suggested an alternative. Not having representation and hoping things will work out isn't a plan or strategy. Thanks for the public service. Why are you here again?
Nothing wrong with taking a critical perspective on the options and alternatives, however I haven't seen anything resembling another strategy. You seem quick to dismiss what appears to be a reasonable direction for shareholders to pursue, which makes me question your motives. Are you even a shareholder, or simply here to provide a public service? If I were to guess, I suspect you are opposed to any action that would lead shareholders to organize.
Brazil,
I sincerely appreciate the effort you have put into this, and your point re. involvement/volunteering is spot on. In my case, I am in the middle of a buyout of a division of my former company. Spending 70+ hours a week on effectively taking a company private. Not sure if I would ever do it again, but can almost see the finish line. I also have small kids who still want to spend time with me. These are my priorities.
I'm trying to pay attention to this investment, but the sad reality is I have emotionally and financially written it off. That said, your efforts have put some wind in my sails, so I will commit to seeing this through and will commit to a larger role if it adds value.
I'll be on the call Monday.
Darth
Thanks Brazil, I'll be up early on the West Coast to join.
If you are gathering comments prior to the discussion, I would like to better understand Chinese restrictions (if any) on the proceeds from the sale of the Chinese assets. Can the proceeds (if any) leave the county?
Darth
Per the 8k filed 7/15/13: The Company’s other direct and indirect subsidiaries are not included in the filing and no bankruptcy, insolvency, or similar proceedings have been initiated with respect to any other subsidiaries.
Not that TA is terribly relevant here, but we are currently sitting directly on the 50 DMA. A break Monday could see some technical buying.
Pray, I think it's automatic due to the bk filing. FEED was already trading OTC, and still is. Not much has changed other than the ticker.
And, regarding my private equity scenario, keep in mind Ivan is an investment banker, not a farmer. Take a look at his LinkedIn profile. A buyout might be something he's actually good at.
Finbar - I've combed through prior filings and the last, published annual report. The assets in China consist of the following: 21 legacy farms (purchased in cash from prior equity funding) that were acquired between $800k and $9 million apiece. Then there is the animal nutrition business (how the company got started) with eleven major retail brands. Lastly, two western style farms which were built from the ground up in public/private partnerships with the local districts. These are the crown jewels of the assets. I could not locate any recorded debt on any of the assets in China. From what I understand, all China operations were built/acquired using equity financing (apparently its tough to get a loan for ops in China). In terms of what they are worth, I suppose we'll find out soon enough.
Because of the accounting issues, FEED will either sell off the China assets, or sell some and take the company private (I think this is the more likely scenario).
Hey guys, checking into IH. Looks like a good group over here.