“main objectors are the unsecured creditors commitie and they are the only one that have an extension to file an objection”
So that group basically has the power for the rest of us if we discover material information that might change the decision on accepting the dip lenders bid.
My personal opinion, the ad hoc committee has left the building. Why, because the early bond big money has cashed out by now; taking the “big time” lawyers with them. The dip lenders know this and we see the rush to sell off the ATP assets for less than $700M before anyone wakes up. It would be interesting to see, after cashing out, if that big bond money switched sides to the dip. Thank you Chevy!!!
If the ATP debt was reduced by $1.125 billion dollars would that make a difference? You bet it would. So our bonds have a face value of $1,000. As a current bond holder would you take today $250 face value? My bet, 99% of the current holders would jump at that offer, why because the high priced early big money is out. You can track the bonds sales, you can count on the dip lenders are also tracking this information. That’s why the rush to sell the assets. Where has the ad hoc committee been these last 5 months??? Have we seen any objections on “anything” from the committee?
With the number of bonds that have traded the last six month, I would bet the average cost per $1000 of the current bonds holders is less than $100.
That means 99% of the current bond holders might jump at a $250 face value sale. Which means ATP’s debt would be reduced by $1.125 billion. Has anyone from the debtor side made an offer to any of the bond holders?
You do the math, reduce the debt by $1,125 billion do you thank financing could be found to replace the dip financing, you bet it could.
Ask yourself, why didn’t management address the biggest debt first? That would be the $1.5 billion in bonds? Don’t you think finding funding would be easier if that debt number was reduced? After the fact; Oh well, we tried to find funding but we couldn’t. Now we know the dip has allowed a 10% interest being given to management, based on the terms sheet. With T. Paul out, 10% is more than the current management group currently owns. So let’s do nothing, to busy getting the clipper production on line and addressing the courts requirement to offer the gulf assets which included everything. This is the same group that gave themselves the bonuses at year end.
Remember the movie “Wizard of OZ”; classic line in the movie, “Pay no attention to the man behind the curtain”. It’s like speeding, no foul, no harm until you get caught, but officer I didn’t know the speed limit was 55. We didn’t know!!
So what’s next, someone tell me I am wrong here, tell me management is doing everything they can do to preserve our investments. Tell me I am wrong, the ad hoc committee is looking after the interest of us bond holders.
Just me, management doesn’t care about those who purchased common stock at $.15 a share, management doesn’t care about those who purchased the preferred shares at $1.00 a share. And management doesn’t believe they can make deal with current bond holders who purchased bonds at $50.00 per thousand in value.
And the biggest “pay no attention to the man behind the curtain” the “change in control” (ownership) requirements the court has put into place, driven of course by management; story line “save the tax credits”. The truth, hell with the tax credits, maintain control of the company until the dip lenders have all of the assets.
Same thing with the common shares value, something is creating demand for the stock, therefore higher market price. When the judge approves the assets sale, those driving the demand will be gone; it will be too late for anyone who has wised up to fight for control, arguing incompetence of management.
Someone tell me why management has not tried to make a deal to reduce the debt by $1.125 billion dollars.
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