MC, appreciate your opinion on this. I have also wondered why Tronox management did not disclose quarterly financial disclosure.
Although sub operation has not been disclosed to equity holders and investing public at large, I highly doubt that is lost to EC and its counsel. EC's counsel, Pillsbury Winthrop, has represented all sides of bankruptcy case, so I am sure they're aware of foreign subsidiaries' operation and its impact to equity holders. Also, keep in mind we have Eureka/Young, EC's financial advisors paid to advise EC on financial and restructuring efforts.
It's been almost four months since we've had any substantial news from EC in response to bondholders plan. But, the share price has gone up significantly since with complete silence from EC. I believe it has been accumulated and is being accumulated by seasoned distressed debt investors seeing tremendous value here.
What we know at this point is the stockholders equity is much higher than the current level, Tronox management indicated in court doc it's working with EC on POR, TiO2 market and the overall macro economy improving significantly. I believe these aforementioned items alone warrant this move and as matter of fact, should be much higher from the current level.
Other items of importance to equity holders in the back burner are like you suggested hidden value from sub operation, also there are Fitzgerald case and let's not forget Kerr McGee lawsuit. With respect to KM lawsuit, it's not a done deal that the government and tort claimants get 100% of proceeds of the lawsuit. At minimum, the environmental trust being negotiated will wipe clean substantially all environmental liabilities from Tronox and that in itself is extremely positive for reorganized Tronox
With huge gains in Tronox bond prices, significant appreciation of common shares and the silence tells me the momentum has shifted from bondholders to equity holders.
