Chemtura Corp (fka CHMT)

[oaps222]

You made positive points, but some (if not all) of the LONGs here wouldn’t be excited with $1.13, as we were in a price range of $1.30 to $1.70 for so many months (although $1.13 is better than the current price of $0.53). As INTERLACHEN MULTI-STRATEGY MASTER FUND indicated in its objection to the POR confirmation, $1.39 was an average price during the period of Jan. 14 through June 17, 2010, and that would be a minimum price the market was expecting. Perhaps, it would be true that the longer the confirmation process takes, we would be better off (by perception), but, frankly, I don’t care whether it takes a longer or shorter time. What I am only looking for is to get it right in a fair/justice way for all stakeholders.

As Madclown indicated in his Post #65221, I am looking for a Judge Gerber’s right decision on the following issues:

1. Valuation ($2.45B vs. $2.05B) – A middle point of $2.25B would be a compromise. $200M is equivalent to $0.82 to the share holders.

2. Unnecessary $70M fee for the 2016 and 2026 Bond holders – It is equivalent to $0.29 to the share holders.

3. Unnecessary prepayment of $50 million to PBGC - It is equivalent to $0.21 to the share holders.

4. Pass through $120M for settlements - It is equivalent to $0.49 to the share holders.

So, with the high end of a 10.4% recovery of $0.56, I am waiting for his decision, which would provide us a minimum equity value of $2.37 ($0.56 + $0.82 + $0.29 + $0.21 + $0.49 = $2.37).

What I am really hoping from Judge Gerber is that he simply reinstates the 2016 Bond ($500M) and 2026 Bond ($150M), approves the new Bond ($455M; hope the new lender agrees) to pay off the 2009 Bond ($375M) and all other settlements, and keeps the current common shares. I don’t know what would be a PPS by taking this approach, but I believe the PPS, IMO, would be in a range of $3 to $6. I believe this would be the easiest, simplest and most fair approach for all stakeholders.

http://chemturaresearch.blogspot.com/2010/09/and-now-we-wait.html

http://www.kccllc.net/documents/0911233/0911233100909000000000018.pdf