Roman,
It has been awhile, still holding my bonds and preferred shares. Tried retirement for about 4 months, worked on some of our real estate holdings, spent some time in Hawaii with the wife, purchased a couple more thoroughbreds to race and played with the grand kids. Got a call from a friend and went back to work. I’m sure you have read the liquidation plan and disclosures. I have developed another objection I will mailing the court on Monday.
Did read a couple of interesting things in the documentation.
Class 5 - Equity Interests. The holders of claims in Class 5 consists of all Equity Interests in
ATP. Holders shall not retain or receive any property under the Plan. All such Equity Interests
will be canceled and extinguished. Because holders of Equity Interests in Class 5 will receive no
distribution under the Plan, Class 5 will be deemed to have voted to reject the Plan. It is not
anticipated that holders of claims in Class 5 will receive any distribution under the Plan.
If the plan is approved as written, common and preferred shareholders will receive nothing, even if ATP wins the BP suit. And our shares will be cancelled. “Holders shall not retain or receive any property under the Plan.”
The Good news is bonds holders are in line to be paid if there is any money.
In reading the disclosures I found out the ATP Israel asset sale fell through. Not sure if the DIP did a back door deal and stole these assets. But know they wanted these properties, my guess the DIP screwed up the deal. No documentation listing the remaining ATP assets that I could find. Have you found anything that would suggest these assets are still retained by ATP, they include the Israeli Petroleum License, ATP East Med Number 1, B.V., ATP East Med Number 2, B.V. and ATP East Med Number 3, B.V.. It has been published that the ATP Israel assets have hundreds of millions of dollars of oil and gas reserves. My guess is ATP still holds these assets, and if we do I think the dip wants them, therefore the liquidation plan. The Debtor states in the disclosure docs “the Debtor is only going forward with a plan process so long as it has the support of the DIP Lenders.” The documents also say “the Debtor’s only significant remaining assets that could fund distributions to creditors consist of pending litigation claims against BP arising from the Deepwater Horizon disaster in 2010 and potential Chapter 5 avoidance actions and D&O claims that have yet to be asserted.
As the equity holders will receive nothing with this plan and have our shares cancelled, I developed the Objection I will be mailing. If you are an equity holder you need to send an objection, the following would be an example.
I object to the treatment of Class 5 Equity holders.
Class 5 - Equity Interests.
(a) Classification. Class 5 includes all Equity Interests.
(b) Treatment. Holders shall not retain or receive any property under the
Plan. All such Equity Interests will be canceled and extinguished.
I would ask the court to order the following Treatment of Class 5 Equity Interest.
Treatment: Provided that the General Administrative Claims, Professional Fee Claims, DIP Superpriority Deficiency Claims, Priority Tax Claims, Other Priority Claims, Other Secured Claims and DIP Secured Claims have been paid in full or otherwise satisfied as provided for in the Plan (or sufficient funds have been reserved to provide for such payment or satisfaction according to the terms of the Plan), any remaining assets of the Liquidating Trust will be distributed by the Liquidating Trustee Pro Rata to holders of Allowed Class 5 Claims. Equity Interest will not be canceled and extinguished before a resolution of the claim and resulting lawsuit against BP is resolved, including the resolution of appeals.
(you need to state an argument also, like the ones below)
• The BP 3.2 billion dollar claim alone would generate revenue to pay all classes ahead of equity holders, in full, leaving a substantial balance to the estate. With the “Forced” total liquidation of ATP assets along with lost revenue from these assets it is possible the BP claim could grow to $4 or $4.5 billion dollars. I will remind the court there is no cap on damages BP is faced with paying.
• “Sell-Down Procedures”, the estate has incurred significant net operating losses. Those loses have been described as a minimum $549 million dollars in court documents. Notably, the estate may lose the ability to use these Tax Attributes if it experiences an “ownership change”, again I ask the court not to cancel and extinguish the ownership of APT.
My guess it won’t do any good, but don’t want to look back and think, hell I should have sent an objection. After reading “Equity Holders” will get nothing and have their shares cancelled, thought the common and preferred would go sub penny. I won’t be able to listen to the hearing but if you hear Equity will get a place in line, please let me know.
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