Chemtura Corp (fka CHMT)

[Xenn]

Official statement from Delafield fund stating shareholder equity value:

"We expect there will be value accruing for the shareholders once the company has been reorganized.Accordingly, despite a severe loss, we are hoping the shares will recover value."

This is the first official statement I've seen stating such a positive outcome for shareholders! The aforementioned quote is culled from a letter that Delafield fund sent to their shareholders dated on April 15th 2009.

I was curious why they held on to their 1.2 million stake (yeah Oilbaron, there I go again with the curiosity!) and with a lil snooping I dug up the letter addressed to the fund's shareholders.

Obviously the fund (like all funds)lost money recently, so in their letter they tried to address their investment missteps & strategies. Despite buying Chemtura pre bk, they have no intention of offloading those shares. See the excerpt below, which references their Chemtura holding:

"This been felt by virtually all our holdings, from the largest and strongest to the smallest with the least financial strength. One, Chemtura Corporation, which has been restructuring for some time, brought in a new Chief Executive Officer (CEO), whom we knew well as CEO of Hercules Incorporated. Unfortunately, they were unable to sell a division on reasonable terms, the proceeds of which were to be used to pay off near-term debt and, instead, elected to file for bankruptcy.

The former Chief Executive Officer and Chief Financial Officer had purchased substantial amounts of stock in the open market within the past year, so we were not alone in believing the shares undervalued. We expect there will be value accruing for the shareholders once the company has been reorganized. Accordingly, despite a severe loss, we are hoping the shares will recover value."

Chemtura is referenced on page two in the following link:

http://www.delafieldfund.com/literature/pdfs/shareholder_letter_latest.pdf