Chemtura Corp (fka CHMT)

[novachem]

I may be dreaming:


The best way to maximize the shareholders value is to bring 7.5 multiples of the EBIDA which comes around $2362.5 million (Debtors numbers are 6.5 multiples ($2050 millions) which is low end of the market) and distribute shareholders around $1.85 to $2.10 (include or exclude based on the pension and KEIP numbers). At this juncture I believe investors (if they see the value of the company) does need to bring 1.1 billion to the table to have a meaningful dialog with debtors (remember SVP and Canyon: don't get greedy, share with others). By the way the debtors BOD has the fiduciary duty to maximize the value for all stakeholders other wise it gets into lot of litigation.

Other option is somebody needs to bring a total cash offer for the company with 7.5 multiples and offer shareholders around $1.85 to $2.10 per share.

Either case instead of doing a back door deal it would be good idea issuing a press release, which Debtors BOD has to respond publically.

On the other hand the debtors needs 1.913 billion (include the pension and KEIP numbers) and add 245million (which becomes 2158 million, remember the current value is stuck at 2050 millions) of the shareholder equity and all they need is 108 million more to get the shareholder value to 1.01, which forces the creditors to give 1.01 to the shareholders or loose the battle for mere 108 million. (245=67+70+108)

So the question is how to raise the 1.1 billion?

SVP and Canyon already raised 475 million and all they need is to have few more investores to add 625 million and I believe there are 6 investors already signed a confidentiality agreement with the company.(again remember: SVP and Canyon: don't get greedy, share with others).

So at the end of the day we may see 1.01 as our shareholder value either from creditors accepting the deal or the EC bringing more money from all investors to make the deal.

It become a war between York and EC. Who ownes the company is a mystery.

I envy you son of guns who is buying shares at these levels and the downside is minimal.