Chemtura Corp (fka CHMT)

[Madclown]

Looks to me like the EC is making a very strong statement. They are saying that whatever the Debtors propose to submit on June 17th will eventually have to be reconciled against the EC’s proposal if they are not one in the same. UBS does not often get involved on the equity side of Chapter 11 reorganizations; that is a fact that should not be lost on shareholders. In order to attach their name to the equity side and backstop a rights offering, they must be certain that their offering will be fully subscribed.

To reduce the debt to a level that “appropriately finances the Debtors' businesses” will satisfy the mandate to maximize value for all stakeholders. To fully equitize the entire capital structure at the expense of shareholders does not satisfy that mandate. From my perspective in following Judge Gerber, I am not only certain that he is smart enough and fair enough to recognize the difference but also certain that he will ultimately rule accordingly. If the equity committee has lined up participants who are willing to pay some creditors, in full and in cash, I don’t see how the court ignores that level of confidence, especially in the current credit environment.