James River Coal fka JRCCQ

[Joe Stocks]

>>so did cemtura<<<

Chemtera was not the same. As I recall the bondholders never got near to 20 cents on the dollar or less. In fact...

the proposed plan—premised on an enterprise value of $2.05 billion—undervalued the company by at least $400 million, thereby inflating bondholders’ recoveries to the detriment of equity holders and (2) that Chemtura should have increased its post-emergence leverage in order to preserve existing equity interests.

On October 21, 2010, Judge Gerber issued a thorough, 78-page opinion, approving the global Settlement, the valuation in the Plan, Chemtura’s decision to de-leverage its balance sheet, and confirming the plan over all objections. The Equity Committee ultimately agreed not to appeal, and Chemtura emerged from bankruptcy on November 10, 2010.

http://www.jonesday.com/experiencepractices/experiencedetail.aspx?experienceid=26353

All I am saying is that the bondholders should get 100% on the dollar before the equity holders get anything. Last I looked the bonds were at something like 15% ( I own some). That is a big shortfall to make up to get equity a recovery. Cagle Poultry would probably be a better example of a come from behind recovery for equity holders. Could happen, but the bond prices right now say no way.