Some Numbers Don't Make Sense!
<< [Wellman] said it received $225 million of debtor-in possession financing, ....
The company, ...., said in a court filing it had more than $124 million in assets, but over $600 million of total debt. >>
Does anyone else see a discrepancy in these three numbers? The DIP financier, which is the existing revolving credit, is still willing to loan this company an additional $225M even though the company reported total assets of $124M, which is fully claimed by debtors. Sure DIP is highest priority in payback, but they are willing to loan more than $100M above the assets. What chance would they have of recovering that value if Wellman spent it all.
IMO Wellman really lowballed that asset number – by factors of 2-3.
-the bum
