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.
Honestly, I have not played a bankruptcy since the financial crisis (SIRI, CITI, etc.). I knew nothing then compared to now (bachelors in finance and accounting, CPA, real world experience, etc.). BUT, this whole thing makes me feel like I still know nothing. I am glad I got into it, because the learning experience has been well worth what I put into it.
Does it go back to trading? No, I don't think it can. This would not be a shell like I was thinking last week. They fully "canceled and extinguished" the stock.
Unless... GAMCO's buying makes absolutely no sense. They surely should have understood what was going to happen. The only plausible explanations to me are:
-They thought the chapter 11 would not get approved and they expected a shareholder class action
-They plan to sue
-They have algo trading that is not routinely monitored for this type of situation and the computers didn't know to stop buying
-Most likely is that it is probably none of the above. But, I am really interested to see how this develops.
They even disclosed their ownership the day before the shares were cancelled. I suppose their next filing will show that they are not holding any more INAPQ. Who knows?
Totally baffled GAMCO was buying up until Thursday 5/7/2020...
Were they expecting a different outcome? Is the story not over?
INFORMATION WITH RESPECT TO
TRANSACTIONS EFFECTED DURING THE PAST SIXTY DAYS OR
SINCE THE MOST RECENT FILING ON SCHEDULE 13D (1)
SHARES PURCHASED AVERAGE
DATE SOLD(-) PRICE(2)
COMMON STOCK-INTERNAP CORPORATION
GAMCO ASSET MANAGEMENT INC.
5/07/20 100,000 .0520
5/06/20 625- .0344
5/05/20 625- .0450
GABELLI FUNDS, LLC.
GABELLI SMALL CAP GROWTH FUND
5/06/20 175,000 .0280
4/28/20 25,000 .0280
(1) UNLESS OTHERWISE INDICATED, ALL TRANSACTIONS WERE EFFECTED
ON THE NASDAQ.
(2) PRICE EXCLUDES COMMISSION.
Correct. The form 4's filed Friday evening state: "all previously issued and outstanding Common Stock was canceled and extinguished."
Full: Explanation of Responses:
1. As previously disclosed, on March 16, 2020, Internap Corporation (the "Company") and certain subsidiaries (the "Debtors") filed voluntary petitions for relief (collectively, the "Chapter 11 Cases") under Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division (the "Bankruptcy Court"). On May 5, 2020, the Bankruptcy Court entered an order, which approved and confirmed the Debtors' First Amended Joint Prepackaged Chapter 11 Plan (the "Plan"). On May 8, 2020 (the "Effective Date"), the Debtors satisfied the conditions to effectiveness of the Plan and emerged from their Chapter 11 Cases.
2. Pursuant to the terms of the respective equity award agreements, immediately prior to the Effective Date, the restrictions on all outstanding restricted stock lapsed and all outstanding restricted stock units vested and shares of the Company's common stock, par value $0.001 per share (the "Common Stock") were issued in accordance with such equity award agreements.
3. In connection with the effectiveness of the Plan, all previously issued and outstanding Common Stock was canceled and extinguished.
See my post #428
The 75k threshold had to be met by 4/10. So, it's not triggering increased demand. It is decreasing supply. I think shorts covering triggered some day traders to jump in not knowing the fully story. So, it was sort of a short squeeze in my best guess.
If your shares are converted to warrants, that is the book value based on those statements. But, your only getting warrants if you opted in by 4/10 and you have at least 75k shares
No the the deadline to opt in was April 10th. Still, anything less than 75,000 shares only gets you a cash payout of less than .01 per share. I've posted the math here before.
Yes
If you did not opt in, you will not own the new company. This is my interpretation, not legal advice. I suggest you research or call your broker.
What do you mean still trading? Your INAPQ shares? That's not exactly what I meant. I just mean that the Internap company that emerges from chapter 11 will no longer be INAPQ. They are now separate. Yes, INAPQ will still trade, but there is no company. I think the volume is all day trading at this point. The price is going up because there is very limited supply on the market as a result of trading restrictions on shares owned by people that opted in to convert to warrants of the new company. They cannot sell. Mine are locked. I just really wish I had 75k instead of 40k.
Any trading on the stock is irrelevant to ch 11 filings. At least how I understand. They are now seperate entitities. INAPQ becomes a shell. Someone correct me if I am wrong. But, Internap is now essentially separate.
A lot to digest, but the 10-K was released prior to news of the chapter 11 plan confirmation. So, everything in the financial statements is somewhat irrelevant at this point. It just states that the confirmation of the plan is pending and unknown.
I'm beginning to think I should day trade for 50% return every day. Geez. Buy the .0002's and sell the .0003's. Looks like everybody's doing it.
Where did you see that?
Still May 4th
Big volume spike this morning. Been hanging out around a penny last few days. Lot's of new products on NBDR site and especially Medident's site including infrared thermometers, masks, gloves, sanitizer, etc.
Company tweet: Infrared Touchless Thermometers now in stock ships from Phoenix
🚨 IN STOCK 🚨
— MediDent Supplies (@_Medident) May 1, 2020
Infrared Touchless Thermometers now in stock ships from Phoenix 🥳 $NBDR https://t.co/mXnrImuetQ
Any close today/this week above .0109 is very bullish from a technical standpoint. Volume or not! News or not! The low volume this week is more indicative on this chart of decreased selling not decreased interest. This ones going higher imho.
Same here. Definitely worth riding out this storm as long as you have a reasonable position size for your risk tolerance.
Yes and no. It has been part of the chapter 11 plan to incentivize them to stay throughout the bankruptcy. Which, is good for the success of the company, but it technically will dilute shares on the other side of the warrant conversion.
I dont do these bankruptcy plays often.but, I see two possibilities. 1. The court approves the plan. If that happens, you get a cash payment for your shares at the ratio mentioned before(this may not be the case if you purchased after the company approved the plan). 2. The court does not approve and this all gets drawn out and who knows then...
At this point, it seems very likely to me that the court is going to approve. I think the price is going up, because people are trying to either get to the 75,000, or people are trading this thing and there is very low liquidity as a result of people having their shares locked in from the opt-in.
Same, they are sending me emails several times a week about products you can order online. Bunch CBD stuff, gloves, masks, sanitizer, etc.
In hindsight, yes. That play would have worked better and I could sell happy and move on. However, there is still a chance the amount paid changes or the plan gets amended. So, I am keeping my fingers crossed here, but we should know more next week.
"Inspyr, like Gilead’s Remdesivir utilizes similar targeting of adenosine for a novel COVID-19 treatment. Inspyr merged with Lewis and Clark Pharmaceuticals several years ago and since then has developed a proprietary, industry-leading technology platform based on adenosine chemistry and biology and a broad pipeline of novel therapies. Their pipeline includes Mipsagargin, a dual A2A/A2B antagonist, an A2A antagonist, an A2B antagonist, and an A2A agonist."
Here is the response I got from PrimeClerk:
The warrant conversion ratio was updated pursuant to the below excerpt within the plan. You may no longer withdraw your submission or increase your participation amount, as the opt in deadline expired on 4/17. If a participating holder owns fewer than 75,000 shares, they will receive a cash distribution to the extent such distribution exceeds $50.00.
So, if you are not opted-in, you either sell or hold the shares in speculation that the plan is rejected. If you are opted in, as I am, we are locked with our shares. If the shares you have opted in is under 75k, as I do, we are at the mercy of the companies valuation of those shares. Based on their notice sent out, that value is about .008. So, this sucks. Because , if I treated this as a trade, I would have doubled up. Instead, I opted in and I am losing over 50%.
When did you receive this notice? I did the opt-in and did not receive this.
I saw they changed the conversion ration from 20k to 75k, but I completely overlooked the value until now. Your interpretation seems valid to me. Which, totally screws anyone under 75k. That is an 82% loss from today's close. I have a question into primeclerk who has been managing the case. This person below has been listed as the contact for INAP and has been responding to my questions. I suggest others e-mail their questions to him as well. I think fact that they amended the agreement should allow investors to change their opt-in.
Alex Orchowski
aorchowski@primeclerk.com
Prime Clerk
830 Third Avenue, 9th Floor
New York, NY 10022
212 257 5837 office
847 809 9512 mobile
primeclerk.com
Hard to say. I think there are speculators like you and I buying in combination with the fact that many are holding for the ability to convert to warrants, which means less supply. There could be some day trading... I can't imagine institutions like GAMCO would still be buying.
This ticker's bid constantly gets slapped with super odd lot sizes. I watch ed a lot of L2 the last few months and this is one of the weirdest I have seen.
Can't believe people still think it's a shell!
You have any suggested reading on these MM activities or how to read L2 tape? I fell like I find a lot of noise on the topic or just the basics. I'm investing a lot of screen time and learning about who the players are and who they are potentially for. But, I could use some more guidance.
New shipment of masks received by Medident
https://medidentsupplies.com/collections/frontpage
Chapter 11 Summary from Counsel:
Sharing this as FYI for anyone interested. This is nothing new or suggestive. Just informational and in laymens terms.
I will say that if I was a prominent firm like Milbank and deciding which cases to talk about on my public site to encourage future clientele, I think I would only want to talk about the successful ones.
I have been watching the docket on this thing and it is super active. Can't keep up. For the most part, it is just orders/authorizations for INAP to pay vendors like Milbank.
https://www.milbank.com/en/news/milbanks-leading-financial-restructuring-team-advises-debtors-in-chapter-11-cases.html
Internap Corporation: On March 16, 2020, Milbank filed chapter 11 bankruptcy protection petitions on behalf of Internap Corporation and certain affiliates (together, “INAP”) in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Milbank has served as counsel to the global provider of premium data center infrastructure and cloud solutions since January 2020, when INAP approached the firm to help it navigate complex financial challenges. Stemming from market competition that resulted in sinking profits and a liquidity crisis, INAP’s balance sheet was insurmountably overleveraged, holding approximately $463.9 million of prepetition funded indebtedness and about $4 million cash on hand.
Prior to the filing in the Bankruptcy Court, and after INAP was unable to find a suitable buyer, the Milbank team successfully secured a Restructuring Support Agreement for an ad hoc group consisting of 77 percent of INAP’s prepetition term loan lenders, putting INAP on a path for success post-bankruptcy by deleveraging its balance sheet. The agreement backed a prepackaged reorganization chapter 11 plan which will equitize approximately $426.4 million of the company’s prepetition term loans, unimpair its general unsecured creditors, and allow current equity holders to obtain new equity in the reorganized company. Also pursuant to the agreement, the ad hoc group has already provided a $5 million bridge loan and will provide $70 million in debtor-in-possession funding. A May 4, 2020 combined hearing will determine the approval of INAP’s disclosure statement and prepacked plan.
The Milbank team included Financial Restructuring partners Dennis Dunne, Tyson Lomazow and Abhilash Raval, and associate Justin Cunningham.
Chapter 11 Summary from Counsel:
Sharing this as FYI for anyone interested. This is nothing new or suggestive. Just informational and in laymens terms.
I will say that if I was a prominent firm like Milbank and deciding which cases to talk about on my public site to encourage future clientele, I think I would only want to talk about the successful ones.
I have been watching the docket on this thing and it is super active. Can't keep up. For the most part, it is just orders/authorizations for INAP to pay vendors like Milbank.
https://www.milbank.com/en/news/milbanks-leading-financial-restructuring-team-advises-debtors-in-chapter-11-cases.html
Internap Corporation: On March 16, 2020, Milbank filed chapter 11 bankruptcy protection petitions on behalf of Internap Corporation and certain affiliates (together, “INAP”) in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). Milbank has served as counsel to the global provider of premium data center infrastructure and cloud solutions since January 2020, when INAP approached the firm to help it navigate complex financial challenges. Stemming from market competition that resulted in sinking profits and a liquidity crisis, INAP’s balance sheet was insurmountably overleveraged, holding approximately $463.9 million of prepetition funded indebtedness and about $4 million cash on hand.
Prior to the filing in the Bankruptcy Court, and after INAP was unable to find a suitable buyer, the Milbank team successfully secured a Restructuring Support Agreement for an ad hoc group consisting of 77 percent of INAP’s prepetition term loan lenders, putting INAP on a path for success post-bankruptcy by deleveraging its balance sheet. The agreement backed a prepackaged reorganization chapter 11 plan which will equitize approximately $426.4 million of the company’s prepetition term loans, unimpair its general unsecured creditors, and allow current equity holders to obtain new equity in the reorganized company. Also pursuant to the agreement, the ad hoc group has already provided a $5 million bridge loan and will provide $70 million in debtor-in-possession funding. A May 4, 2020 combined hearing will determine the approval of INAP’s disclosure statement and prepacked plan.
The Milbank team included Financial Restructuring partners Dennis Dunne, Tyson Lomazow and Abhilash Raval, and associate Justin Cunningham.
The judge to rule in favor of the restructuring plan.
Not exactly. It's the companies own estimate of its book value based on the plan as is. The plan could change, so the companies book value could change. But, it's certainly a good sign,. imho.
Bankruptcy document values shares at $1.71 - INFO:
In the chapter 11 docket https://cases.primeclerk.com/inap/Home-DocketInfo
“Threshold Amount” means $20,500,000 in principal amount, which the
Debtors believe is an amount of Claims that could result in such holder of Claims holding the
Applicable Percentage of New INAP Stock.
“Applicable Percentage” means 4.5% of the number of shares of New
INAP Stock that the Debtors reasonably estimate will be outstanding immediately after the
effective date of the Plan, as determined for U.S. federal income tax purposes.
Per the bankruptcy plan:
On the Effective Date, each holder of an Allowed Class 3 Claim
shall receive its Pro Rata share of (i) commitments under the New Term
Loan Facility, in the aggregate principal amount equal to the New Term
Loan Facility Principal Amount; and (ii) 100% of New Common Equity,
subject to dilution by the Management Incentive Plan and the New
Common Equity Warrants. The receipt of such consideration shall be
deemed, as of the Effective Date, to be in full and final satisfaction,
settlement, release, and discharge of, and in exchange for, such holder’s
Allowed Class 3 Claim against each Debtor.
“New Common Equity Warrants” means 4-year warrants for 10% of the aggregate
amount of New Common Equity issued and outstanding as of the Effective Date
So, this says that:
4.5% of the new company is valued (*by INAP) at $20,500,000. Thus, algebra tells us full company value is = $455,555,555
The current shares will be converted into warrants entitled to 10% ownership in the new company (subject to dilution by employee incentive plan). 10% of the company is $45,555,555.
Finally, $45,555,555 / 26,621,105 shares = $1.71 per share.
The two big variables: 1. Is the bankruptcy a success? 2. How much dilution will result from the employee incentive plan?
Not sure why they would short. With shares being locked in from the opt-in process, supply in the market is declining. So, I am really not sure why anyone sees the price declining... It's very possible it was just intraday trading. As far as the bankruptcy process, the may 4th hearing is next. However, I am keeping my eye on the docket to see if anything shows up. But, at this point, I am locked in. So, I probably won't be as active on the board. Good luck to everyone holding!
Spike in shorts yesterday despite what appeared to be lots of buying...
If you exclude the short volume from yesterday, there was still a lot of buying happening... Nonetheless, I have 60k shares locked in for the ride that are opted in to release and cannot be sold. I imagine lots of others are locked in as well. It will be interesting to see what happens to these shorts...
All motions approved! https://cases.primeclerk.com/inap/Home-DocketInfo Everything seemed to go according to plan for Internap.