US Concrete Inc. (fka RMIXQ)

[ScovilleUnits]

Following borrowed from Damianfw07 on Yahooo

Disclosure Statement - 30-Apr-10 12:07 am
The Disclosure Statement was filed this evening....all 33 pages, including giving management and BOD's 10% of the company......as I said several days ago.....management pushed for bankruptcy IMVHO so they could enrich themselves. They basically over 3 years get 10% of the company for zilch. They get 3.5% of all new shares within 30 days of bankruptcy exit. Here's the link to bankruptcy court filings. Click on Documents under #16. This site you may want to save as it's updated daily and you will be able to follow proceedings: DaninFW

http://dm.epiq11.com/USC/docket/Default....

http://dm.epiq11.com/USC/docket/Default.aspx?rc=1&DMWin=c7700987-7ed6-438f-adcb-1af9483f9a9b

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Will Be Interesting - 29-Apr-10 03:45 pm
I have been reading the countless postings today and can't help but find that on days like this we have dozens of new posters with many the same person but different sign-ons. What happened today is going to allow longs and shorts to make a lot of money or lose a lot of money. The nxt 60-90 days are going to be very interesting. RMIX stock may trade a little lower and could easily bounce over $1.00 again. The shorts that didn't do their homework and don't cover soon will get burned. When RMIX stock symbol changes probably tomorrow to RMIXFQ.PK it will be harder to short and even buy on the pink sheets without causing dramatic increases/decreases. Most pink sheet stocks you can no longer short only cover. I figure we may have anywhere from 10-15 million shares shorted after today. They will have to cover at some point because the stock must be turned in for warrants to be issued. They will only be canceled at that point. Those that don't think they have to cover are going to wake up one morning and pay dearly.
Now, here's a few thoughts since I specialize in these situations. My postings several months ago are just almost 100% what I predicted.
1) The bondholders will get 100% of all new stock. Period. Exisiting shareholders get zilch.
2) Exisiting shareholders will be issued a warrant that will actually trade on an exchange at a price determined on strike price and expiration date. For instance, let's assume each current shareholder gets a warrant to buy one share for $12 anytime from now till 7-31-15. Assuming RMIX exits bankruptcy in 90 days, that would give a shareholder the right to buy one share at any time for $12 for the next 5 years. That is worth something. Let's assume further that the new stock that gets issued to bondholders starts trading at $10 a share. there is a very good possibility that RMIX new stock might get well above $12 sometime in the next 5 years. If the stock gets to say $18 then the wqarrant is worth at least $6, the difference in strike price and current price. Please understand, shareholders are not being given 15% of the new stock, just the warrants to buy them.
2) The bonds today traded as low as $562.00 per bond and hit $643.75 after the announcement. If you figure the difference in assets and liabilities as reported in bankruptcy filing today was just $10.2 million of which $11-12 million was accrued interest and that fact some of those other liabilities were for leases that will get canceled in bankruptcy......then bondholders are exchanging $272+/- million in bonds for the equivalent in assets of well above $1,000 per bond. The bonds are the real buy right now.
3) The scenario in #2 also gives credence to a shareholder equity committee which will be certainly formed. They will point out that there is assets for shareholders well above the amount of recovery entitled to bondholders. They will threaten legal action, etc. in order to get a small percentage of newly issued shares or even more warrants at better strike prices. They will threaten to tie this up in court for months if not years if they don't get more than 15%. Remember, no shareholders have approved this deal.
4) In bankruptcy now with all useless leases canceled, there might even be a competing offer for RMIX with the base price already established. Anyone offering to pay bondholders 100% and give shareholders a small amount would be well received.
5) What RMIX has reported as an operating loss for past few months is now actually less as they will not have to pay well north of $10+ million in accrued interest they now won't pay. They will continue to save $20+ million a year in interest costs while in bankruptcy.
6) As all of what I describe above unfolds....RMIX will be very volatile. Be ready. DaninFW