Replies to post #1206 on Aventine Renewable Energy Holdings (fka AVRW)

[biofuel911]

You guys might like this post from yahoo board topic "market multiple valuation"

"One other important point to think about and research. If the unsecured bondholders accept a debt-for-equity deal in exchange for their $300M (face value) bonds, they will be considered an "unimpaired" creditor class by the BK court. That means the only "impaired" class will be us (the common stock shareholders). As such, we (the shareholders) will be the ONLY class entitled to vote on the reorg plan. Essentially, all creditor classes above us will be fully satisfied."

"This is similar to what took place with PGPDQ (Pilgrims Pride) BK when their disclosure statement was released. In PGPDQ's case:

1. all classes of creditors above the shareholders were unimpaired

2. the existing shares were diluted to 36% of total shares and additional shares were issued in exchange for new financing provided by JBS USA Holdings who ended up with a controlling interest (64%) in the reorganized Pilgrims

3. the original shareholders were the only impaired class and therefore the only ones entitled to vote on the reorg plan

4. The disclosure statement hearing was yesterday

Here is a link to PGPDQs press release describing some of the terms of the disclosure statement:

http://www.pilgrimspride.com/reorganizat...

If Aventines CH 11 case takes this path, I am looking forward to seeing the terms contained in the reorg plan and voting accordingly. Also looking forward to hearing what people on this board say about the plan when it is released Dec 4."

There has been some decent posts on that board the last couple days. Things are definately heating up.