Replies to post #62468 on Chemtura Corp (fka CHMT)

[chem8]

Wall - Sure, but wouldn't every company like to emerge debt free? But that's not how it works a lot of the time. The POR tells us all we need to know about Chemtura's intentions, we don't need much intel to tell us that. The variables now are what can the EC counter propose and what will the court decide?

Well, I know you know what the variables are given your EC involvement. But I think none of know what the results will be yet.

[Peanutbuttercup]

They can still grow through acquisitions without having substantially lower debt....it just makes things a little more difficult. I agree with your assessment....he's wants to take the easy way out naturally to accomplish his goals more quickly at the expense of the shareholders.

I hope he has to work alot harder than that to make his money.

[chickenvestor]

If he intends to grow the company, they can issue more shares to cover the new purchase. The company is worth more and it will support the added share base if it is a good aquisition. There is no reason for them to come out of this unscathed. They had debt when they entered CH11 and they should carry some debt when they exit. Giving themselves $30,000,000 pats on the back for exiting bankruptcy does little for the company and nothing for the share holders. I admit he has done a good job on the turnaround but he isn't worth that much.

[ontchem]

There is one point that needs to be talked about. Rogerson has now put a low take over price on his own corperation and left the door open. If his vision is to have a company twice the size at the end of this process there will be others that see it as well.
If an other corp can make an offer that will please EC and Debt then his vision could come true only someone else will be running it.

[JDJacobson]

I'm no corporate finance expert but I have taken that class and there are more than one way to make acquisitions. There can be all cash, equity+cash, entirely new equity. There is no such thing as an ideal equity/debt ratio just industry standards. If I was the judge *which I'm not* I would not be privy to allow a CEO to eliminate shareholders in an attempt to come out debt free which I'm positive is less than the industry average. If the EC can show a Plan that is close to the industry average and still preserves equity I doubt that the judge will be able to deny them that right. Especially since bondholders are not entitled to a substantial increase in value by being converted to equity.

[JDJacobson]

Furthermore, if the company had it their way they would emerge debt free and be ready to double growth through cash merger. If the equity committee has it's way it would preserve equity fully by raising the funds and paying off creditors in full. We need to meet somewhere in the middle if this is what will be a fair outcome. If not we get screwed plain and simple. The court would have denied us a long time ago if this was the case IMO.

[JDJacobson]

But WS, you're a smart guy and I do value your opinion as I'm sure many others do as well. I kind of understand what you are trying to do by informing investors here that at the moment we are completely at odds with the company per the court documents. No one invested here should think otherwise. I think that point is across but what most here are dying to know is what do you still have invested here or do you still have a vested interest in the company; or are you no longer a believer in the recovery?