Ah, Lord help me, why do I bother?
Maybe I'm hoping that No_Strap_That_Damned_Us_in_1998 will show up. Perhaps that is the "Dale" that you are looking for.
Series B Preferred: The big winners in this. LaSalle Cover tendered for a small price, eventually paid just a little bit more and recovered a multiple of that price in the July distribution.
Why doesn't LaSalle Cover dump its equity position (I'm assuming you are referring to the Series B preferreds)? Why bother? To whom should they sell and for how much? Besides, they are still owed a significant amount (and this is the key to the non-value of the common). If there is any cash whatsoever to be made available, it is theirs.
The rape of what company? It is the job of the liquidators to recover as much as possible for the estate. There being no other buyers for LSUK, what should they have done? Besides, it would take much, much more before the common shareholder sees anything. See below.
I did not join to bash. Am I bashing? I don't think so. Bashing days are over for this company and its stock. It was worthwhile at 75 cents, but no point at $0.006. Much more fun to point out the reasons why a company is going down the chute, rather than pick over the bones of a bankruptcy. Somebody suggested I weigh in, I demurred but, reading some of the posts it became obvious that there is at least a bit of irrational exuberance if not misguided views here.
Contingent assets? The key word is "contingent." But you can bet that if they were significant or that there was any reasonable recovery potential you would know about them.
Keep in mind that the liquidators are held accountable by Bermuda law, which is not as slack as you might think. When it is all over they will have to provide a complete accounting and potentially could have to answer to criticisms of mismanagement.
Yes, indeed I did essentially summarize the recent 8-K filing, but this should be no surprise because that is what I said I was doing in the post. May I again suggest that you read the filing again, but with a bit more care?
The key point is this: Trenwick Group, your company, owes LaSalle Re Holdings $87 million (or is it $89 million?) and it has no meaningfull assets to address that indebtedness. It's only asset is...LaSalle Re Holdings. So they can wipe out the debt as an intercompany account? Perhaps except that LaSalle Re Holdings has an outstanding balance due its Series A preferred holders of about $43 million. Do you think the NOLs are worth $43 million?
(Hi Eva. Long time, no "speak." Hope you are well, and I apologize for the bum steer on Ambac -- I lost a ton on that one too. Did you see the race at Monza this year?)
AI
