Replies to post #24628 on AbitibiBowater, Inc. (fka ABWTQ)

[Superfly15]

Emailjanum, in a completely OT post, Drain just got assigned to the A&P bankruptcy case. There are two big shareholders in there, Burkle (owns both debt + 25% shares), and a German family grocer Tengelmann who owns 40% and have had a stake since 1979. Furthermore, these two bailed A&P out of BK last year by providing 115mm financing in the form of convertible preferred stock. Both said they were satisfied with A&P heading into bk, maybe we need to check this out closer even though they filed as insolvent....


Drain is a high-profile jurist in the world of big business who presided over the Refco bankruptcy. In the Delphi case, he's carved out a reputation of looking out for shareholders (need looking out for), creditors (plenty of these), and tens of thousands of hourly workers(A&P has unions, workers probably own shares), most of whom were bought out for comparative chump change. Attorneys representing these interests will be citing Drain's words for years to come."

According to Dow Jones Daily Bankruptcy Review,Judge Robert D. Drain of U.s. Bankruptcy Court in White Plains, New York, ruled on Monday, December 13, 2010, that A&P can access almost $400 million of the $800 million J.P. Morgan Chase & Company bankruptcy financing to sustain daily operations while it is protected by Chapter 11.

As a condition for the credit arrangement, J.P. Morgan Chase & Company required that part of the money be earmarked for A&P's existing creditors. if Judge Drain approves the DIP loan at a later hearing, A&P will have access to the remaining $450 million dollars in revolving credit. A&P said that the 18 month maturity, which allows it more time to work out a creditor repayment plan, is a big advantage of the DIP loan.