Re: Evaluation Hearing, Day One, pt 2
by: shallow_explorer 04/18/05 10:54 pm
Msg: 56100 of 56341
Debtors, Creditors, and MAGI (Company Reps) Opening Arguments:
They were supposed to get 1 hour and 15 minutes, but after a short recess, Judge Lynn gave the company reps some more time for a total of over an hour and a half. Most of the presentation was made by the Debtors as represented by… (okay, here’s where I was at a disadvantage being upstairs, lawyer was referred to as Mr. Kurtz, but I can’t find him on the lawyer list) Interesting that it was not Mr. Lauria nor Ms. Phelan. Also interesting what Mr. Kurtz? spent his entire 1+ hour opening statement on. He didn’t summarize the Debtors evaluation methods, he didn’t summarize their case, instead, he spent nearly 100% of his opening statement disparaging the shareholders committee’s experts and their supposed willingness to be shills for the shareholders committee.
In the opening of his opening, he stated that the debtors represented all classes of owners, including the shareholders. That the debtors had brought about $255M in savings to the stakeholders benefit through employee layoffs, etc. That indeed the debtors have fought claims against the estate. And that by filing their POR which provides for a timely emergence from bankruptcy, that the debtors would be able access the capital markets during a presently favorable window of opportunity, that may close if the bankruptcy drags on. Mr. Kurtz? went onto to worry that if the debtor emerges from bankruptcy with too much debt (ie. too much value given to the estate) that they will have a hard time going forward and could end up back in bankruptcy court. Judge Lynn interrupted and asked Mr. Kurtz? if there was more value, shouldn’t it go to the shareholders? Mr. Kurtz? continued that valuing a company as large as Mirant was more of an art instead of science (Judge Lynn would later comment during the SHC opening that he felt that valuation was more like using a crystal ball). Debtors main argument was that they are the only unbiased participants, since they are representing all parties fairly. He stated that the company experts were better qualified than the equity consultants. They hammered on our experts’ incentive fee for shareholder recovery. He stated that company plan was “appropriately aggressive” and not conservative.
