Replies to post #2480 on AgFeed Industries Inc. (fka FEEDQ)

[finbar99]

>>The glaring admission that this is sitting negative 20 million right now is something that can't be overlooked.

The 20 mm delta is between the current stalking horse for less than all the assets and the claims hurdle...if China is worth more than 20 million (and the US assets not included in the sale), and/or there is a robust auction - that's a much smaller hurdle than I've seen in other successful bankruptcies.

>>They are looking for a job since work is slow

No doubt they would like to land the gig. I didn't hear them asking for funds to file the objection to auction procedures. What I heard them say is that they might require seed money if the EC request has to go to a full blown hearing - but they aren't asking anyone to sign on the dotted line to be on the hook for those yet.

Their point that the other constituencies have counsel at the table, and that they have priorities very different from those of equity are quite valid - and that's the reason that equity should have counsel - especially this short marketing runway for the US assets - there is hardly time under the proposed schedule for anyone interested in bidding to arrange financing and qualify.

[brazil_83]

Wall_Street wrote:

"But they want someone to pony up significant funds (out of your own personal pockets) to file some trivial objections that will be addressed by the CC most likely."

I agree - if the creditors are due $95M, and the bid for US assets $79M, the creditors are already motivated to make sure the bid is increased - so was unsure why we need to file something today.


"Unless the auction results in over 100 million to the estate via the upcoming 363 sale, It's going to be a tough row to hoe trying to peddle the chinese assets' equity value as a basis for an official committee.

RIght now I don't see it happening."

Because of the VIE structure? So you are in agreement with Madaniels?

You and a couple others on the call were much more educated in these matters than me. Did you hear a explicit plan on how they were going to obtain value for the China assets, or is everything just exploratory? (have been trying to communicate to the firm that we need a plan, and to base it on examples of other BK cases; hopefully, their own experience)