It doesn't appear to be going the auction route. The IBs have been retained to find a new equity partner. Berg appears to want to stay on as a major shareholder. This would greatly concern me if he didn't own half the equity and almost all the debt. I don't trust Berg to do right by shareholder, only to do right by himself. Given his holdings of both debt and equity, and given that he needs to bring on a major new partner, I think Berg is highly motivated to seek out the best possible valuation of the whole. Based on what JCI/NEC/Wanxiang were willing to bid for A123, I think it's not hard to see a number that clears the claims hurdle, at which point the absolute priority rule starts to work in our favor.
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