Bankrupt and Distressed (BAD) Research and Due Diligence

[Gileon7]

Actually the big thing this week will be the judge's approval (or rejection) of the examiner. The US Trustee is supporting the motion for an examiner and that will be the first step. The assets have been grossly undervalued and a third party neutral examiner will at least give a true value of assets.

I don't think there is any way the motion for an official equity committee will be approved before an examiner comes back with numbers. The equity committe motion is not a make or break decision at this time. One other thing that may play a big role in this bk is the percentage of shares held by funds. Davidson Kempner has six different funds purchasing shares, each can purchase up to 6.4 million shares, those shares along with the other funds may very well be enough to replace the BOD if any failure to perform fiduciary duties is discovered by the examiner.

Visteon has turned nearly half a billion dollar profit in the last 2 quarters, that (earnings and future earnings) with the true value of assets may very well be enough for commons to get a piece.