Posted by: JoChef In reply to: Eagle1 who wrote msg# 16 Date:6/14/2007 10:13:07 PM Post #of 18
SOLUQ looks to descend a bit further, but watch out, she may be a bounce play.
Bankruptcy re-org play.
Common equity will be cancelled with the new issue, I wouldn't hold this one overnight. The new issue will be a classic IPO play.
Years ago, Monsato rounded up all the bleeding divisions of its' company and rolled them into "Solutia", being the "Solution" for averting bankruptcy. Afterall, ships don't sink in pieces, so Monsato opted to divest the losing businesses as Solutia.
Following, are some of the high level points that were takeways from reading the re-org plan => Enterprise value looks to be better than initially projected. Management has struck accords with Monsato regarding legacy liabilities, environmental remediation. Also, the pension plan will be funded with the new issue, and creditor recovery was fairly modest, considering the massive restructuring.
Solutia has a division not to far from my humble abode, so I've been following this firm for a while. ---------------------------------------------------------------- Re-Org link from Solutia's URL => http://www.solutia.com/reorganization/
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