Evaluation Hearing, Day One, pt 4
by: shallow_explorer 04/18/05 10:56 pm
Msg: 56102 of 56342
Okay, returned from recess. Judge Lynn mentioned that Debtors, etal would get 20 more minutes. I guess someone claimed the judge had promised 1.5 hours per side. I didn’t hear this, so don’t know when/where the Judge promised an hour and a half, but that’s how it goes.
Okay, now the creditor’s attorney is up and I didn’t catch his name. Creditors did a bottom up analysis for a business check. Unlike the equity experts, the creditors experts have a broad clientele and are a recognized source of cashflow projections. Additionally, it would harm their reputation if they were to compromise their testimony in favor of the debtors. Since their experts have so many clients, they just have to use the same approach for all clientele.
Creditors cashflow forecast, while differing from company’s has very similar ultimate results to the company’s evaluation. Since both creditor and debtor analysis similar, must be right. Another(?) expert, either Mr. Ying or Mr. Yang, once again I’m at a disadvantage here, says $6.3-$7.1 Billion in value. So 3 independent analyses show equity out of the money, all with different constituents. In contrast, Equity Committee and Phoenix have “wildly” higher values and don’t even agree with each other. Phoenix even has a low case that has the equity out of the money. (Remember that Phoenix, while owning some shares, 15MM-I think, is actually a large subordinated debt holder. So while aligned with equity usually, not always).
Creditors attorney has similar problems with SHC experts. But had even more complaints…
Refered to some guy named “Mr. Parker” who both our experts, Mr. Slater and Mr. Maxwell, used as a source but would not be testifying. Insinuated that Mr. Parker was not testifying because it would be contrary to Mr. Slater’s testimony. Judge Lynn interrupted at this point and said he didn’t need to hear this kind of innuendo and that if Creditors want his testimony, they could subpoena him.
Said Phoenix expert, Mr Ru (sp?) is a chemical engineer with no financial experience and that this lack of training should make his testimony irrelevant. Claimed Professor Shekat’s (sp?) testimony was compromised since he was a “hired-gun”.
Creditors also broached the NRG merger issue. Said proposed NRG merger synergies – can’t include as NRG told to approach debtor and never did. Insinuated that NRG merger offer was not sincere – much more on this in SHC opening.
At this point MAGI attorney whined that they were worried about overevaluation since 10% of their value under the POR would be in new company stock. Stated it was important that MAGI not receive overvalued stock. Suggested that suggestions w/r to MAGI being insolvent were incorrect.
Next up, the SHC and the amazing Mr. Weisfelner.
