AbitibiBowater, Inc. (fka ABWTQ)

[SilentMinority]

Regarding Consolidation

You're dead on. I can't see how this judge can disregard that the Debtors assume substanative consolidation but that the plan disregards this. If even one debtor has value to it after all claims are addressed, then equity can recover its pro rata share of equity interests. How can the judge ignore this?

I've seen some BS about all the shares being at the holding company level and that equity is out of the money at the hold co level, however this ignors that hold co also has interests in subsidiaries. These subs are part of the cash flow that drove the market value of pre-petition equity. Despite assertions of some, these subs (some of which may hold value for equity) are still part of the fabric which should drive equity value. As such, the Black Cloud advisors cannot determine the value of Hold Co exclusive of the value of the subs.

It's a complex issue and unfortunately, many lawyers trip over any form of numbers/valuation (no offense to those in the legal profession). Even more unfortunate is that judges may be cut of the same cloth ...