Chemtura Corp (fka CHMT)

[MarketGeometry]

Here more example on the same topic

General Growth Properties

Bill Ackman, Pershing Square Capital Management
Bill Ackman laid out an in depth case as to why the equity shares of General Growth Properties (GGWPQ) are a good investment despite being in bankruptcy. It all breaks down to the company's assets are greater than their liabilities. Through several potential workout agreements or a court appointed "cram down" the
equity should greatly benefit from the likely scenarios. As far as a business General Growth's malls have over the country 24,000 tenants.


Ackman made the analogy between General Growth and the stuations that occurred at Alexanders and Amercao (U-Haul). These were bankruptcies where assets are greater than liabilities. During bankruptcy acreditor entitled to their claim but no more, and in this case the equity will be left with value.