AgFeed Industries Inc. (fka FEEDQ)

[wall_street61]

I agree with you on the D&O. However I think that will take a long time to play out. I plan to be gone once the final plan has been filed.

If my math was right the stock should have moved up more. I can see it getting close to what my math did with a discount for the deal not happening say (75% close/25% not close - you choose) but that should be the floor with more for a higher auction.

I feel like I'm either missing some debt, the cash value of the China bid isn't really cash or something else.

The information isn't available to the public for the subject years, although the current policy I believe is $1 million per occurrence or $5 million total cap. That's not enough to cover any large claims, ie class action.

There is no bar date yet so we don't know the totality of the claims.

If repatriation comes into play for the BVI assets, which I don't discount as not being a problem, there may be an approximate 35% reduction in proceeds from the sales as a tax liability. I seriously doubt you see a plan before tax liabilities/IRS claims are dealt with, along with the SEC, and the class action.

The debtor may take it upon themselves to settle the class action via a 9019 settlement and grant them an unsecured claim which will be paid in full prior to stockholder distributions, or they could value their claim and treat them pari passu with the current stockholders and pay them an equal amount as stockholders received up to the amount of their claim, and then stockholders got 100% of the leftovers, if any (think dilution).

You've got 2 law firms because someone appointed to the committee or leftover peer pressure from the ad hoc decided to use a chicago firm since, i can only guess, they had one case in which they served as UCC counsel for a pork firm. (Not a really good barometer, but hey whatever). The problem is that they are not licensed to practice in Delaware so EG came along as the other half as local counsel. For what is left to do, even EG could or should be able to handle it, because no matter how much jumping up and down they do, like I previously said, this is a liquidation, not a re-org, so auctions are the name of the game, not equity infusions or rights offerings (which would be a worse outcome). Then you have a financial adviser that will be worthless as tits on a boar hog, pun intended. They serve absolutely no purpose, unless you call spending who knows how much to make a liquidation spreadsheet.

Then you have examiner expense, probably. Not just the expense of the examiner, but the combined expense of the total cash burn for all these useless advisers that will be on the clock when the examiner does his thing.