ATPG Senior 11.875% 2nd Lien Bonds (fka ATPG.GE)

[romang]

posted by seismic



seismic Friday, June 07, 2013 6:55:13 PM
Re: romang post# 1864 Post # of 1866

Romang,

Sorry about last week, was tied up in meetings all afternoon and missed free time. It looks like I missed free time again today.

I did listen to the hearing last week, the Judge did say he had received twenty plus letters objecting to the 363 sale approval. Seems letters are helping. He did tell the dip lenders they didn’t have a “done deal” . The judge did say … why approve the sale when the debtor is showing some profitability, as if he was asking the debtor to offer something of a reorganization plan.

There was a discussion regarding any additional cash to be paid by the dip lenders would be paid as directed by the court and not ear marked by the Dip Lenders. The dip lenders have no say in the use of the proceeds from the 363 sale. They didn’t seem too happy about that.

An interesting observation, I stayed on the line after the hearing and listened, the mic was still on. The court was adjourned and folks moved out of the court room, but not all. Some stayed round 10 to 15 minutes. This has happened twice when I listened in. You might want to hang on for a few minutes, I think the folks that stayed to talk thought the mic was off. Maybe I shouldn’t have said this here but next week everyone should be listening and they might want to hang on for a few minutes.

The letters are working and everyone should send a letter to the court with your concerns, it will only take a few minutes of your time.

My first communication to the court was a letter. I then developed an objection to the 363 sale approval and mailed it; believe that was one of the twenty objections the judge received. I also wrote a motion, and mailed it to the court. None have been published publicly thus far.

I shared my letter, objection and motion with the different committee legal representatives, excluding the dip lenders. I received an email from the equity committee in response, they basically blew me off.

I also received an email from the creditor’s committee. He asked for my phone number and he called me. We had a nice conversation. He told me I made some good points in my objection; and my motion would be better served if my personal attorney were to advise me.

I asked why would the equity committee just blow me off and sent a copy of the “blow off” email to him. I had about twenty questions but he didn’t offer any hope if the court approves the 363 sale. We spent some time discussing reorganization, but the debtor needs to show they can make a profit to have any plan at all. I think with the increased in revenues we might be getting close, but the debtor looks like they are on a path to liquidation over reorganization. We spoke on this and I told him I am not expecting the debtor to develop a plan. Again no help, in if there is a plan underway he didn’t speak of one. I did speak of my concerns about the 10% management ownership incentive in the Dip Lenders “Holdco Company”. Again no information there! He was very nice but I really didn’t learn anything new. He invited me to email or call him with any questions and concerns. I was happy someone was concerned.

Last week I sent an additional letter and have another ready to be mailed today. I am developing a Strategic Reorganization Plan for the courts consideration and will have it mailed Monday.

An interesting development in the BP case and haven’t seen much about it anywhere. Did see a local headline that brought it to my attention and wanted to share! New and related claims are being consolidated into the ongoing trial as the district court in New Orleans has ordered on May 20th, 2013. This is a big deal for the ATP claim. You can go to the district court web page and read the order.(see link below)

This was a known possibility months ago but it has now been ordered by the court. This trial in New Orleans is scheduled for September 2013. This process should not take years to settle and with the possibility of a settlement before September 2013, as Judge Barbier is close to issuing a ruling on the first phase of the trial and the percentage of liability to be assigned to BP or its partners; whether any of the companies should be found to have committed gross negligence or willful misconduct, which could result in a four-fold increase in Clean Water Act fines.

The $3.1 billion dollar ATP claim could represent $12.4 billion dollars. Do you think this might have something to do with the rush 363 sale by the dip lenders?

I understand some think ATP will never see a dime but I think everyone will be surprised with the award ATP will receive. There will be one at least one claim that will be the “highest paid claim”, ATP or if the credit bid is approved by the court before an award or settlement, the Dip Lenders will receive the highest paid claim. If ATP’s claim grows four-fold that claim could be worth $12.4 billion, do you thank the Dip lenders want the 363 sale approved ASAP.

Blast away at me if you must, but history shows us other parties have been paid, those payments to date are $20 plus billion dollars, history also shows us that claim settlements have also been made. Why would one think ATP’s claim for $3.1 billion wouldn’t be paid and or settled, with companies that have a means to make such payments? One company will be awarded the “highest in damages” and based on information we know today that company should and could be ATP. So blast away, a $3.1 billion payout looks pretty good against a $12.4 billion exposure, and the cases have been consolidated into the ongoing trial, by court order.

The Texas court needs to hear from everyone, flood the court with objections to the 363 sale and the relinquishment and abandonment of the Gomez assets. Tell everyone to write, your mother, your dad, your brothers and sisters, your kids, their kids. Even write a letter for your dog or cat.



If you need a link to the district court in New Orleans for the consolidation order, here it is. May 20th 2013.

http://www.laed.uscourts.gov/OilSpill/OilSpill.htm