Wall...your post is on point (as usual) and poses a very plausible scenario.
Not surprised about the objection either (of course it's gonna stick in the trustee's craw). From an objective standpoint, yeah I agree, but from a subjective shareholder standpoint, I’m like give them the swag already.
The Trustee astutely lobs the ball back into Rogerson’s court with the below commentary:
"The Debtors have not provided the Court with any evidence to determine whether the costs of the KEIP are reasonable...
By the Debtors’ own admission in the June MOR, “[t]he ultimate recovery by the Debtors’ creditors and the Company’s shareholders, if any, will not be determined until confirmation and implementation of a plan of reorganization.
No assurance can be given as to what recoveries, if any, will be assigned in the Chapter 11 proceeding to each of these constituencies."
Now if only Rogerson would step up to the plate and say "Chill, the creditors, Wall & his Posse will be chuckling all the way to the bank after we exit bk. We’ll even furnish Arnold with a crate of Corona and a lime incentive."
Unfortunately, this type of transparency is not forthcoming. What is forthcoming is good DD that points to Arnie swigging some Corona on Rogerson's dime:)
AI
