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.
https://money.cnn.com/quote/shareholders/shareholders.html?symb=JCP&subView=institutional
3/31/2020 HARBOR SPRING CAPITAL LLC Bought 8.4 Million shares of J C Penney Company Inc
3/31/2020 NEWPORT TRUST CO. Bought 1.2 Million shares of J C Penney Company Inc
5/08/2020 THE VANGUARD GROUP, INC. Bought 589.2 Thousand shares of J C Penney Company Inc
When a stock is listed on the NYSE and declares bankruptcy it is delisted. Usually it is relisted on the “pink sheets” (otc market) with a new symbol ending in Q. It will continue to trade until the bankruptcy plan is confirmed and the stock is canceled. After this happens you will remain short (and potentially pay borrow fees) until the DTC tells your broker that the shares no longer exist.
Volume lull. Could be a momentum flip. Will be difficult not to sell when it breaks .08 again.
Thanks for an answer to my debt question.... I think there's still a chance though that they reduced debt some unknown amount that hasn't been announced yet.
Banro (BAA -24.4%) says it has entered into a support agreement with major stakeholders to refinance $207.5M of outstanding debt, equitizing outstanding preferred shares and raising $45M via a gold forward sale.
BAA expects the recapitalization to REDUCE DEBT, improve liquidity and allow it to optimize operations and enhance its gold mining assets in the Democratic Republic of the Congo.
BAA will implement the plan through a corporate plan of arrangement under the Canada Business Corporations Act.
Is it possible to figure out how much debt was reduced by the Recapitalization? Or do we have to wait for the next Quarterly Report?
SHORTS ARE SQUIRMING!
Substantial Increase in Volume Today...
Amyris could be involved with Honest Co. They are making changes to multiple products by "utilizing an advanced sugar-based surfactant technology to further improve the efficacy of our products."
See 1:35 mark of video:
https://www.yahoo.com/news/jessica-albas-honest-co-pull-225702844.html
This is a truly exciting opportunity. Good luck to everyone!
Ask is solid at .034
If Aeropostale is able to prove that Sycamore maliciously forced them into bankruptcy...
It seems like there will be, at the very least, a class-action lawsuit that involves Common Shareholders.
The retailer’s allegations about Sycamore would be resolved before any hearing on confirming the reorganization plan, according to the disclosure statement.
New Filings dated Sunday, July 24th. There's a lot to read over!
https://cases.primeclerk.com/aeropostale/Home-DocketInfo
07/24/2016
503
Statement : Notice of Filing of (I) Amended Plan, (II) Amended Disclosure Statement, and (III) Revised Form of Order Approving Disclosure Statement (related document(s)500, 502) filed by Jacqueline Marcus on behalf of Aeropostale, Inc..
07/24/2016
502
Amended Disclosure Statement : Amended Proposed Disclosure Statement for Amended Joint Plan of Reorganization of Aeropostale, Inc. and Its Affiliated Debtors (related document(s)500) filed by Jacqueline Marcus on behalf of Aeropostale, Inc..
07/24/2016
501
Amended Disclosure Statement : Amended Proposed Disclosure Statement for Amended Joint Plan of Reorganization of Aeropostale, Inc. and Its Affiliated Debtors (related document(s)500) filed by Jacqueline Marcus on behalf of Aeropostale, Inc..
07/24/2016
500
Amended Chapter 11 Plan : Amended Joint Plan of Reorganization of Aropostale, Inc. and Its Affiliated Debtors filed by Jacqueline Marcus on behalf of Aeropostale, Inc..
07/24/2016
499
Response : Debtors' Omnibus Reply to Objections to Disclosure Statement for Debtors' Joint Chapter 11 Plan and Related Procedures (related document(s)437, 436) filed by Garrett A. Fail on behalf of Aeropostale, Inc..
excerpts from Motion filed:
33. Prior to his appointment of Mr. Geiger to Aéropostale’s board, Mr. Kaluzny initiated discussions with Mr. Geiger about his upcoming appointment. Mr. Kaluzny explained his investment strategy to Mr. Geiger and stated that he should “do nothing” while a member of Aéropostale’s board and “just observe” because Mr. Kaluzny’s plan was to let Aéropostale deteriorate so that he could “buy the company in a bankruptcy.” See Declaration of Julian R. Geiger in Support of Debtors’ Ex Parte Motion for Entry of an Order Pursuant to Bankruptcy Rule 2004, Authorizing Discovery Examinations of Sycamore Partners, Stefan Kaluzny, Kent Kleeberger, Aero Investors LLC, and Other Related Discovery, sworn to on May 3, 2016 (the “Geiger Decl.”), ¶ 5 [ECF No. 26]. The conversation illustrates the reasoning behind Sycamore’s actions in the months leading up to the Chapter 11 Cases.
34. In August of 2014, when Mr. Geiger accepted the position of CEO of Aéropostale, Mr. Kaluzny told Mr.Geiger that it was “clear we have different goals for the Company.” Geiger Decl. 7. After Mr. Geiger’s appointment as CEO, Mr. Kaluzny became increasingly frustrated that Mr. Geiger would not participate in Mr. Kaluzny’s “loan to own” plan to buy the Company in a bankruptcy.
81. Requiring cash bids from all parties will ensure a more spirited sale and auction process. Parties potentially interested in the Debtors’ assets and/or businesses are gravely concerned about the impact that the Lenders’ credit bid may have on the sale process.
Motion to Disqualify / Debtors Motion for an Order (I) Pursuant to 11 U.S.C. § 363(k) Disqualifying Sycamore Partners and its Affiliates from Credit Bidding; (2) Pursuant to 11 U.S.C. § 510(c) Equitably Subordinating Claims; and (3) Pursuant to 11 U.S.C. § 105 Recharacterizing Claim filed by Richard W. Slack on behalf of Aeropostale, Inc..
https://cases.primeclerk.com/aeropostale/Home-DocketInfo
Motion was filed late on Friday!
Aeropostale accuses Sycamore Partners of 'Loan to Own' Scheme
Yahoo Finance
https://www.yahoo.com/news/aeropostale
I guess the official Sycamore Lawsuit press release will come after hours or maybe Monday morning.
Shorts are probably thinking hard about covering before today's close.
"Watch the lawsuit - its the only thing this has going. Otherwise this horse is headed to the glue factory." -MasterBlastr
Aeropostale to challenge Sycamore's status as creditor.
http://www.reuters.com/article/us-aeropostale-claims-bankruptcy-idUSKCN10130P
Aeropostale to challenge Sycamore's status as creditor
http://www.reuters.com/article/us-aeropostale-claims-bankruptcy-idUSKCN10130P
U.S. teen retailer Aeropostale Inc (AROPQ.PK) plans to challenge in court private equity firm Sycamore Partners' claims as a creditor in its bankruptcy, according to a transcript from a court hearing held this week that was seen by Reuters.
The fight between Aeropostale and Sycamore stands out from other bankruptcy cases of U.S. teen retailers, because very few of them triggered litigation. It could also complicate any effort by Sycamore to take over the retailer.
The lawsuit, expected by Friday, would follow an investigation by Aeropostale over the past several weeks into whether Sycamore drove the company into bankruptcy, in part by making the terms of its debt investment in the company in 2014 deliberately onerous.
Sycamore affiliates loaned Aeropostale $150 million in 2014, and, as part of the deal, required that the chain make merchandise purchases from one of Sycamore's companies, MGF Sourcing. Aeropostale has said that MGF imposed new, burdensome terms on the retailer that precipitated its bankruptcy.
In bankruptcy court in New York on Monday, attorneys for Aeropostale said that they would pursue claims that could dramatically reduce Sycamore's recovery on its $150 million debt investment. It also intends to challenge Sycamore's ability to use the money it is owed as credit in bidding for the company in a bankruptcy auction scheduled for next month.
A source close to Sycamore, who asked not to be identified because they were not authorized to speak publicly to the media, said the firm does not believe Aeropostale's investigation uncovered any support for the claims the retailer plans to file. Sycamore declined to comment.
Sycamore is investigating its own potential claims against directors and management of Aeropostale for concealing financing information and breaching their fiduciary duty, the person said.
"This is just a tactic by Sycamore to distract attention from their own malfeasance," said a spokesperson for Aeropostale.
Aeropostale, when it asked a bankruptcy court judge for permission to conduct the investigation into Sycamore's investment in May, pointed to statements made by Sycamore Managing Director Stefan Kaluzny that it says suggest he had been plotting its bankruptcy since 2013.
Aeropostale is one of at least five teen retailers, including Pacific Sunwear of California Inc (PSUNQ.PK), Wet Seal LLC and Quiksilver Inc, that have filed for bankruptcy in the past two years, as shoppers shift away from malls toward online shopping.
Another scenario or Alternative Transaction (a possibility stated in POR):
Aeropostale only has 80 Million Outstanding Shares.
Debt for Equity Swap could still be a possibility here. Of course there would be dilution, but it could save the company and give Unsecured lenders an opportunity for repayment, plus (possibly) the security of cash reserves for Aeropostale.
I could see Outstanding Shares at around 350 Million.
Also keep in mind that Aeropostale has repurchased 1 Billion Dollars worth of their own stock. It would be very surprising to see it canceled.
66 cents seems more likely considering the Stalking Horse bid will probably be over 100 Million Dollars
Interesting to Re-Read in this Ch. 11 Context:
On June 4, 2015, Aeropostale revealed in a Form 4 filing that over the last two days, CEO Julian Geiger has purchased a total of 250,000 shares of the company he runs. Beginning his buying on Wednesday at a share price of $1.85, Geiger continued buying all the way up through Thursday, at which point the stock had already risen 10%, to $2.04 per share. (It’s up again in after-hours trading, perhaps in response to the Form 4’s revelations).
At last report, Geiger now owns 281,129 shares of Aeropostale — about nine times what he owned before beginning his spending spree.
What does it mean to you?
Geiger couldn’t have picked a much better time to begin his buying, either. After all, the past five years have seen Aeropostale lose 93% of their value, and the shares are down by nearly half over the past year. Much lower than this, and the stock market would be giving them away for free.
And yet, at the same time as we notice this, we can’t help also noticing that despite a share price rapidly approaching “free,” many investors remain decidedly negative on the stock. 25.7% of Aeropostale’s float is sold short. But why?
Well for one thing, sales declined 20% in the most recent quarter, and profits, as already mentioned, were nowhere to be found. Aeropostale is also carrying a sizeable slug of debt — $141 million, against just $76 million in cash. And while Aeropostale has not yet released a cash flow statement for its most recent quarter, all indications are that it will remain firmly free cash flow-negative, which will do nothing good for its debt situation.
Long story short, Geiger’s insider purchase of Aeropostale shares at today’s low price could prove prescient if he manages to turn around the ship. Alternatively, if Aeropostale keeps on its present course, it could go bust — and its CEO with it.
Not Many Shares Available For Purchase
Only 70000 Shares on ASK from .025-.034
Last year Sycamore bought Belk (a company I've literally never heard of) for 3 BILLION DOLLARS.
http://www.newsobserver.com/news/business/article32007993.html
Any guesses on how much Stalking Horse will bid for Aeropostale's assets?
*The company listed $390 million in debt and about $354 million in assets in the Chapter 11 petition filed May 4 in Manhattan.
*The plan says it is likely that unsecured creditors, a group owed an estimated $340 million, will go empty-handed.
Stalking Horse announcement will send shares soaring!
Example from earlier this month:
http://www.biospace.com/news_story.aspx?StoryID=425181
I'm not a lawyer, but it seems to me that they're keeping their options open, and also being strategic by applying pressure to the Unsecured Creditors. I believe the next meeting with the Judge for approving the POR is July 26th, so we could still see some more news before that.
This part of the POR seems rather specific: a merger, consolidation, business combination, recapitalization, or refinancing of any of the Debtors (in one or a series of related transactions) on terms other than as set forth in the Purchase Agreement
1.10 Alternative Transaction means any restructuring transaction that is inconsistent with a Sale Transaction, including (i) a merger, consolidation, business combination, recapitalization, or refinancing of any of the Debtors (in one or a series of related transactions) on terms other than as set forth in the Purchase Agreement, (ii) the issuance, sale, transfer, exchange or other disposition by any of the Debtors of any equity interests (other than common stock or equity interests issued in respect of any employee stock or unit options), or all or substantially all of its assets, on terms other than as set forth in Purchase Agreement, or (iii) a plan of reorganization that does not contemplate a Sale Transaction.
Could Unsecured Creditors Save Aeropostale?
It could be the only way to be repaid their 340 Million Dollars.
Province Hired as Financial Advisor for Aéropostale Committee of Unsecured Creditors
LAS VEGAS, NV, MAY 11, 2016 – Today the Official Committee of Unsecured Creditors of Aéropostale, Inc., et al. (“Aéropostale”) announced that Province, Inc. (“Province”) will serve as its Financial Advisor. The engagement will permit Province to assist the Committee and Committee Counsel in representing the interests of all unsecured creditors in order to maximize financial recoveries.
Aéropostale is a specialty retailer of casual apparel and accessories, principally serving young women and men through its namesake brand and juniors through its P.S. from Aéropostale brand. Aéropostale operates over 700 stores in the U.S. and Canada and its licensees operate over 300 stores in the Middle East, Asia, Europe, and Latin America pursuant to various licensing agreements. Aéropostale also operates e-commerce platforms for its Aéropostale and P.S. from Aéropostale brands, as well as GoJane.com, an online women’s fashion footwear and apparel retailer. Aéropostale filed for chapter 11 bankruptcy protection on May 4, 2016.
“We are pleased our firm was selected for this engagement and look forward to demonstrating our perennial ability to maximize value for creditors,” said Victor Delaglio, Managing Director of Province.
http://provincefirm.com/province-hired-as-financial-advisor-for-aeropostale-committee-of-unsecured-creditors/
1.10 Alternative Transaction means any restructuring transaction that is inconsistent with a Sale Transaction, including (i) a merger, consolidation, business combination, recapitalization, or refinancing of any of the Debtors (in one or a series of related transactions) on terms other than as set forth in the Purchase Agreement, (ii) the issuance, sale, transfer, exchange or other disposition by any of the Debtors of any equity interests (other than common stock or equity interests issued in respect of any employee stock or unit options), or all or substantially all of its assets, on terms other than as set forth in Purchase Agreement, or (iii) a plan of reorganization that does not contemplate a Sale Transaction.
5.2. The Sale
The Confirmation Order shall authorize the Sale Transaction under sections 363, 365, 1123(b)(4), 1129(b)(2)(A)(iii), 1145, and 1146(a) of the Bankruptcy Code under the terms and conditions of the Purchase Agreement. Upon Confirmation, the Debtors shall be authorized to take any and all
actions necessary to consummate the Sale Transaction. Notwithstanding the foregoing,as provided in the Sale and Bid Procedures Order, the Debtors may elect at any time prior to the Effective Date to pursue an Alternative Transaction if such a transaction is determined by the Debtors to be in the best interests of their Estates.
Huge Bid at .033. 974000 shares...hmmm
5.2. The Sale
The Confirmation Order shall authorize the Sale Transaction under sections 363, 365, 1123(b)(4), 1129(b)(2)(A)(iii), 1145, and 1146(a) of the Bankruptcy Code under the terms and conditions of the Purchase Agreement. Upon Confirmation, the Debtors shall be authorized to take any and all
actions necessary to consummate the Sale Transaction. Notwithstanding the foregoing,as provided in the Sale and Bid Procedures Order, the Debtors may elect at any time prior to the Effective Date to pursue an Alternative Transaction if such a transaction is determined by the Debtors to be in the best interests of their Estates.
1.10 Alternative Transaction means any restructuring transaction that is inconsistent with a Sale Transaction, including (i) a merger, consolidation, business combination, recapitalization, or refinancing of any of the Debtors (in one or a series of related transactions) on terms other than as set forth in the Purchase Agreement, (ii) the issuance, sale, transfer, exchange or other disposition by any of the Debtors of any equity interests (other than common stock or equity interests issued in respect of any employee stock or unit options), or all or substantially all of its assets, on terms other than as set forth in Purchase Agreement, or (iii) a plan of reorganization that does not contemplate a Sale Transaction.
Twangiza & Namoya will both be producing over 30000 oz of Gold soon. Amazing how quickly Namoya is progressing!
I'm predicting
20,800 oz Namoya
33168 oz Twangiza
Q2 Total = 53968 oz
Ummm..We have LIFT-OFF
I'm predicting
20,800 oz Namoya
33168 oz Twangiza
Q2 Total = 53968 oz
Q3 Should Be Good for Junior Miners...
http://www.kitco.com/news/2016-06-29/Q3-Should-Be-Good-For-Junior-Gold-Miners-CIBC.html
There was a bid for 160000 shares premarket....
35 cents might happen today
Any nugget of news and we'll be at .40. Another 'hanging wall' perhaps.