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Re: Dec 2015 Original VDC Note. Effective with the Company’s emergence from bankruptcy, VDC’s former equity interest in the Company was cancelled. Immediately following that event, the Company issued 655,094 New Shares to VDC in repayment of approximately $62.0 million, including accrued interest, for the VDC Note. Thus $62M / 313M AS is about $0.20 pps back in Dec 2015
Food for thought: Relative to Reorganization Value: Reorganization value represents the fair value of the Successor’s total assets and is intended to approximate the amount a willing buyer would pay for the assets immediately after restructuring. Under fresh-start accounting, we allocated the reorganization value to our individual assets based on their estimated fair values.
..in June 2016, from SEC files:
Our reorganization value is derived from an estimate of enterprise value. Enterprise value represents the estimated fair value of an entity’s long term debt and shareholders’ equity. The estimated enterprise value of the Company of approximately $954.2 million represents management’s best estimate of fair value on the Effective Date and the value contemplated by the Bankruptcy Court in confirmation of the Reorganization Plan after extensive negotiations among the Company and its creditors. The estimated enterprise value, after adding cash plus the estimated fair values of all of the Company’s non-debt liabilities, is intended to approximate the reorganization value. A reconciliation of the reorganization value is provided in the table below:
(in thousands)
Enterprise value $954,242
Plus: Cash, cash equivalents and restricted cash $250,046
Plus: Working capital surplus $712
Plus: Current liabilities $80,284
Reorganization value of Successor assets $1,285,284
so,
From June 2016 pps projection: $1,285,284,000 cost to buy VDI / 5,000,053 shares outstanding = $257.05 per share to buy out VDI on June 17 2016. Thus VDC’s share is (655,094 new shares / 313,218,153 VTGDF old shares) times $257.05 = $0.538 per VTGDF aka VTG aka VDC old shares. Huge upside here using VDI own value of itself following reorganization.
and, this was 2 years ago...well before all the positives that have been VDI's experience since like the $650,000,000 lawsuit win several months ago....
