Good post from another board. If that poster is a poster on this board, props to you, nice post.
Let me tell you why Chemtura WILL prevail - IMO, why commons won't be
canceled, why bond prices are rising and why the pps is on a rocket
ship north.
What most folks are familiar with when they see the "Q" is a company
who's assets are minimal or easily repeatable. Many times these
companies are service or 'security' backed where the asset's have
little or no street value.
Chemtura is a strong company in a sector poised for growth globally.
Their assets out weight their liabilities and those assets are worth
BILLIONS due to the cost of starting from scratch, clientele, or
simply opportunity cost in the eye's of a competitor (buying a product
and immediately fulfilling economies of scale).
The fact is that most of these motions to date, as you will notice,
are nickle and dime stuff 'THE FAT'. The BP contact is a good chunk of
dollars, but with rising fuel costs that number may only remove $500k/
mo. Point being in that case your looking at less than $3M savings a
year. What Chemtura is all about and the creditors know this is cut
out the "10%" fat, sell an asset and you now not only have CASH, but
you have efficiency. Heck even the unsecured creditors aren't putting
up a fight (what does that tell you)
This is the point every nay sayer is missing. This company is so
strong that a single asset sale combined with basic BK grooming will
unleash a powerhouse in the industry. NO ONE wants to cancel commons,
that is done when the secured creditors are scrambling for a minuscule
return - this (IMO) is not the case.
