The way I see this situation, it really does boil down to HYPERION, MERLIN and SOLAR. And that is because, the prices that they sell any of these assets for, set the precedent for the future bidders to gauge their bids. In my opinion, it was absolutely irresponsible of Despin to allow any sale below retail. The precedent that was established, with the first auction of the sapphire processing equipment and the latest HYPERION sale, will affect future bidder sentiment. And the word on the street is, hold out until they'll sell for pennies on the dollar, this is a right off, liquidation sale. By allowing these assets to be sold at the prices that they did, completely destroyed any hopes for equity.
They would have been better off bundling the processing equipment and the HYPERION into a combined ASF package and offering them as a sweetener, to lock in the ASF sales. This strategy would have enabled GT to sell the furnaces at premium price rather than discount. It's quite obvious, that the processing equipment could be useful to any company engaged in the sapphire growing business, because that's why GT had it to begin with. Twin Creeks and GT invested more than $100mil. into the HYPERION, to make a profit. That's the whole point of business, to buy low and sell high.
Any of the potential, would be buyers at retail, have backed off and wouldn't even think of making an offer, knowing the assets are selling for pennies on the dollar. What I have to wonder is, after the equity is cancelled there is no GT anymore, therefore all agreements between APPLE and GT become void. This will allow the creditors to renegotiate the terms for the sales of the ASF's. By wiping out the shareholder's equity there is a $1bil.+ savings that can be passed on to any potential buyer of the furnaces or, other GT asset. At this time any potential buyers are circling around like vultures, just waiting for the equity to die, before they pick the last flesh off the bones of this company. Thanks you very much, Tim Cook and Luc Despin.
AI
