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It is outrageous to have destroyed its shareholders, when we see our company doing so much money. We are The Griswolds Family with a bad boss. Surely no bonus again for Christmas! Must laugh! Happy party, anyway, to all my friends, who worked very hard for their money. The Lord will give you what you deserve better. That he bless all your families and gives you health and happiness, it is the most important in the life.
Clark
What do you mean by price comm.?
My last post on this topic.
To close and understand all this bankruptcy. It is interesting to read the work of the University of Montreal in the case of bankruptcy AbitibiBowater.
The report of L'UQAM said that the merger, bankruptcy and restructuring are an indivisible whole to meet the financialization of the company by a transfer of risk to workers and communities while allowing redefine greater wealth for a new class of speculative investors (Between us, it means that everything was arranged (Financialization = CDS)). And in his, finding, they say, well, that bankruptcy has been endorsed by a State policy, the Québec government to restructure its forest sector
http://interventionseconomiques.revues.org/1594?lang=en#article-1594
An other case Shareholders For Justice.
http://jimymac.blogs.com/shareholdersforjustice/
Yes, still waiting for justice
Read this
http://money.ca.msn.com/investing/news/business-news/resolute-ditches-abitibibowater-name
This is disgusting! What about us old shareholders?
I've lost faith and interest in investing!
Shares Undervalued -- Share Re-purchase
And the hits just keep on coming.
Carey allowed $2250 claim of Ruth Harkin....
Continue to watch with Interest
Looks like we are in the final blow-off top innings for precious metals too. Not sure how long that will last.
Lumber (as a commodity) looks very interesting from Abitibi's bid for Fibrek. I guess tonight's the dealine, unless it is extended.
Maybe Abitibi, Fibrek, West Fraser and Tembec should just merge and get it all over with. Flaherty said the industry was to be re-structured -- of course these guys justify it as in the "public interest" to use illegal naked shorting and Credit Default Swaps to get their own way.
Also, watching the Dynegy situation too.
Out for now - best wishes for 2012 to all fellow posters.
2231264067500001225
Garneau on the offer to buy Fibrek:
"Since we announced our offer late in November, Fibrek has found time to adopt the tactical poison pill and enhance compensation packages for senior management, but has yet to provide its shareholders with a competitive alternative to our offer. Shareholders must now be given the opportunity to decide for themselves whether or not to accept our offer."
Amazing how his interest in shareholders' interest has changed.
http://www.bnn.ca/News/2012/2/10/Mercers-170M-offer-for-Fibrek-tops-Abitibi-bid.aspx
I hope abitibi goes BK again. They have some money to try and buy Firek but have no money for us old shareholders. What a joke!
got a few shares of the new wamu coming
we should have recovered here
Legislation on the case, AbitibiBowater, at Parliament of Quebec. Mr. Rebello keeps his word.
At the Adoption of the Law 7 Parliament of Quebec. The case of AbitibiBowater has been cited as an example. Here is an excerpt below. Maybe this can help you. Also was present, the AMF, I believe, is the equivalent of the SEC in Canada. Both SEC and AMF authorities, speak every week. I can not believe that the investigation be completed on this fraud. When one mentions such an anomaly in a parliament and that we pass legislation to prevent such fraud, It's that the former shareholders of AbitibiBowater are the victim of this planning by management.
Important question? 1) Have you received your notice of hearing?
2) Do we have still time for a class action?
-----------------------------------------------------------------
http://www.assnat.qc.ca/fr/travaux-parlementaires/commissions/cfp-39-2/journal-debats/CFP-111121.html
The second proposal we do is in section 43 of Bill 7, the bottom is to ensure that frames ... that's compared to the conflict of interest, the first point I have brought you to the beginning of the session today, the importance of framing the conflict of interest in the detention of products.
Basically, what we propose is to specify that a person can not hold securities, derivatives in an amount sufficient to come to place a conflict of interest with respect to its power restructuring in the company. We had taken as an example. AbitibiBowater, which bondholders who had a say in the restructuring could also hold "credit default swap" that were betting on the collapse of the company in an amount sufficient to influence their future votes on restructuring . That's what prompted doubts about the decision that was made in restructuring Abitibitibibowater. But in the media, it was noted that a significant portion of bondholders could hold also in large quantities of "credit default swap." So we propose to add a fourth item of Article 43, right, which states, (it looks like: By inserting at the end of paragraph 11, the following: "It must limit the holding of derivatives risk of default, "credit default swap" on the company to a person who also has securities with a restructuring of the power company as creditors, shareholders holding more than 1% of the company and a fund or another company in connection with an administrator in order to prevent there being more interest in the failure of the company.) So that's the proposal we made, just to clarify in the bottom Article 43 the principle we want to prevent the owner of "credit default swap" is a conflict of interest in the company. So, it submits that the Second Amendment to the minister and hope he will be able to watch it with his team and then come back with an opinion on it. With that, I will ask the President if it were possible to take a short break to go to the bathroom.
Mr. Rebello: ... to ensure that these people are in conflict of interest in the restructuring of a company. It seems appropriate that it be done. Because right now it is not clear who should do it. In fact, there is no one who looks at it right now. Then the only actor who could really do it, the AMF <T>. Ensure that, when there is transaction ... For example, suppose that there is a transaction of a significant amount of "credit default swaps" based on ... that focus on the fall of any business. Well, the two actors who make this transaction there, one who sells and who buys that product have necessarily a situation of interest versus the company. It should be ensured that there is nobody in there is a conflict of interest, that is to say that his interest in relation to its "credit default swaps" that holds would the ... as opposed to its interests as a shareholder or creditor. That's right, that is the objective. I think the minister will also .
This is one question that is on the agenda in the U.S. right now. The SEC consult on legislation called Dodd-Frank. Then one component in this regulation is precisely to know is do we have to limit ... we must frame the famous CDS, credit-default swaps. We in Quebec, I think we had better ask the question too. Of course, we can not do it alone, then these regulations. We must act together with others. But I think to follow that debate is very timely, especially in the context where we, we have large companies such as Abitibibowater, which are very important business here, which ... with thousands of jobs, and who find themselves victims sometimes a little of the reality of financial markets. That is to say that the company executives can not just act in the direction to produce the best product at the best price and then sell it. They must also act in the interests of their board of directors and shareholders who are represented. So it's important to look at these issues not to be just one of the victims of this.
Abitibi to Buy Fibrek (lovely)
In the event board is kaput -- will post under Dynegy. We have a lot in common with Dynegy Bondholder Legal Interests.
In light of Tembec sale today -- it looks like WFT will pick them up in due course. But would not rule out Abitib just yet -- cause sale was in BC. And Tembec appears to be going to the secondary market for financing on their 190 million cogen-project.
Resolute Forest Products plans take-over bid for Fibrek
November 28th, 2011 | Posted in Mill Sales/Transfers | No comments »
Resolute Forest Products (previously known as AbitibiBowater) intends to make a formal take-over bid to acquire all of the issued and outstanding common shares of Fibrek Inc.
“The acquisition of Fibrek is consistent with our strategy,” stated Richard Garneau, President and Chief Executive Officer. “As we continue to focus on building a sustainable and profitable Company, growth in expanding global pulp markets is the right move, at the right time, for Resolute Forest Products. The range of optimization opportunities that we expect from this acquisition will, over time, deliver increased value to our shareholders.”
The offer would contemplate that holders of Fibrek shares could elect to receive, for each Fibrek share:
Cash and Share Option: C$0.55 in cash and 0.0284 of a Resolute share
Cash Only Option: C$1.00 in cash (subject to proration, as described below)
Shares Only Option: 0.0632 of a Resolute share (subject to proration, as described below)
The maximum amount of cash available will be approximately C$71.5 million and the maximum number of Resolute shares to be issued will be approximately 3.7 million shares. For purposes of calculating the applicable proration, the maximum cash available and the maximum shares available will first be reduced by the amounts necessary to fully satisfy the Cash and Share Option. The Cash Only Option and the Shares Only Option will each be subject to proration in the event aggregate elections exceed the remaining cash or the remaining shares, respectively. If proration applies, the remaining consideration will be delivered in Resolute shares if the Cash Only Option is prorated, or in cash if the Shares Only Option is prorated.
The offer will contain customary conditions for transactions of similar nature, including, among others, a 66?% minimum tender condition, waiver or termination of all rights under any shareholder rights plan(s), receipt of all regulatory, governmental and third-party approvals, consents and waivers, Fibrek not having implemented or approved any issuance of shares or other securities or any other transaction, acquisition, disposition, capital expenditure or distribution to its shareholders outside the ordinary course of business, and the absence of occurrence or existence of any material adverse effect or material adverse change.
Resolute has entered into lock-up agreements with three significant shareholders of Fibrek, including Fairfax Financial Holdings Limited and Pabrai Investment Funds, holding, directly or indirectly, an aggregate of 59,502,822 Fibrek shares (representing approximately 46% of Fibrek’s issued and outstanding Common Shares). Under the Lock-up Agreements, each of the locked-up shareholders has agreed to tender, or cause to be tendered, all of its Fibrek Common Shares to Resolute’s offer, subject to certain conditions. The Lock-up Agreements provide, among other provisions, that Resolute commence a formal take-over bid on or before December 30, 2011, provided certain conditions are satisfied, including there not having occurred any material adverse change with respect to either Resolute or Fibrek. Under the Lock-up Agreements, which are being filed with the U.S. Securities and Exchange Commission (the “SEC”), also available on the Canadian SEDAR filing system, the Locked-up Shareholders have no ability to withdraw any Fibrek Common Shares to tender to or facilitate any competing transaction.
The offer represents a premium of approximately 39% over the closing price of Fibrek’s shares on November 28, 2011, and a premium of approximately 31% over the volume-weighted average trading price of the shares on the TSX for the 20 trading days ending on that date.
Full details of the offer will be included in the formal offer and the take-over bid circular to be filed with the securities regulatory authorities and mailed to Fibrek shareholders.
Based on Fibrek’s public disclosure, it has 130,075,556 issued and outstanding Common Shares (on a non-diluted basis), valuing the offer at approximately C$130 million, or approximately US$126 million. Resolute currently owns no Fibrek Common Shares.
BMO Capital Markets is acting as financial advisor to Resolute, while UBS is acting as financial advisor to a special independent committee of the Board of Resolute.
Source: Resolute Forest Products
About Fibrek
Fibrek is a leading producer and marketer of high-quality virgin and recycled kraft pulp. The company operates three mills located in Saint-Félicien, Québec, Fairmont, West Virginia, and in Menominee, Michigan with a combined annual production capacity of 760,000 tonnes. Fibrek has approximately 500 employees. The Saint-Félicien mill provides northern bleached softwood kraft pulp (product known as NBSK pulp) to various sectors of the paper industry mainly in Canada, the United States and Europe, for use in the production of specialized products. The Fairmont and Menominee mills manufacture air-dried recycled bleached kraft pulp (product known as RBK pulp) and primarily supply manufacturers of fine uncoated paper, tissue paper for commercial and industrial uses, and coated paper in the United States
Here You Go: It's Over. We're done folks.
Posted 2011-11-21 11:14
by Karl Denninger
in Editorial
Here You Go: It's Over
http://market-ticker.org/akcs-www?singlepost=2790911
We're done folks.
CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.
That's the end of it. The belief that there are more MF Globals has now taken hold. The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.
The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk.
The market is done folks. You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.
We're there folks.
Oh sure, there will be rallies and there will be selloffs. But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.
This isn't just about speculators - it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.
More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe.
The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.
Well folks, then none of your investment accounts -- not your IRA, 401k, not even your bank account -- is safe.
Diversification is a strategy but the risk remains. It is up to you to decide how much you're willing to risk losing to a crook. If the answer is "none" or you cannot reduce the at-risk portion of your assets to what you're willing to lose to fraud then you can no longer participate in the market at all, in any form, nor even do business with a bank.
That sucks, but it is what it is and if this meme spreads -- and it will until it's stopped -- we run the risk of a "sudden stop" economic event.
I hope you're ready for it -- I am to the best of my ability, and you ought to be.
Governments must stop the abuse.
Thank you, best case, where our governments are deadlocked at the abuse of a dying capitalism.
They should punish the abusers who use a law that is made to help companies in difficulty and not for it serves to defraud honest people who believe in justice and a capitalist, industrial standard, and healthy environment for the enrichment of our country.
The problem is that capitalism is sick by his philosophical transformation of INDUSTRIAL capitalism to that of FINANCIER which this latter is no longer focused on the healthy development of industry and wealth sharing, but rather, that of financial speculation, which feeds on the destruction of the economy and fraud authenticated by its power.
That's it, that it must be understood in the case of AbitibiBowater, speculation by CDS caused the bankruptcy of AbitibiBowater, because it was more profitable for creditors to take this path rather that to save the company. Mr. Rebello has denounced, Soros and Buffet too. This is what, we call conflict of interest from the management of the company and issues of governance and transparency.
Thus, the management was rewarded for this destruction because the system only plays the game with a mechanical restructuring of management and protection regulated by law 11 and whose possibility of verification seems almost nil.
However, by the abuse of this system, both by CDS speculation and illegal trading Shornaked, and before the complaints pile up, the judges will be tougher to deal with complaints. And even more, as there is now a mass denunciation of this system, the courts of appeal is now under pressure. Thus it must do justice to counter it abuse.
Thus, the panels of judges who will rule on such cases as AbitibiBowater will be infinitely cautious to finally to give justice for all those who have been swindled by such financial scams. The people waiting for the real verdict, because Obama is now susceptible for all, what is happening, and has promised reforms. They have all in the hands at this case, of Abitibibowater, to replace it on the good road.
It is not by changing its name that can fix everything. At least that it be really RESOLU?
Let more Ch. 11 Games begin
Look at document # 92. from Dynegy Case
http://dm.epiq11.com/DHL/docket/Default....
Just simply cannot see that Judge Morris would dismiss the ch11 filing due to the alleged FC. Judge Morris would really need to get the FC issue settled one way or the other.
Frankly, this looks like a really bold move on PSEG's part.
Here is the introduction from the 40-page filing.
>> INTRODUCTION
This Court should dismiss the Debtors’ bankruptcy cases because the Debtors have
fraudulently and without good faith manufactured an artificial insolvency in an effort to impose
the limitations of section 502(b)(6) of the Bankruptcy Code upon a handful of the Debtors’
creditors. In In re Integrated Telecom Express Inc., 384 F.3d 108, 115 (3rd Cir. 2004), the Third
Circuit ordered the dismissal of a bankruptcy petition in strikingly similar circumstances. The
Third Circuit’s reasoning is directly applicable to these cases, and this Court should follow
Integrated Telecom and dismiss the Debtors’ bankruptcy cases.
The Debtors’ commencement of these chapter 11 cases is the most recent step in a
scheme orchestrated by non-debtor Dynegy Inc. and its other non-debtor affiliates (collectively
with the Debtors, “Dynegy”), along with certain members of the “Control Group.”2 Dynegy Inc.
and certain members of the Control Group have fraudulently stripped value from the Debtors,
and in particular Dynegy Holdings, for the benefit of Dynegy Inc. and its equity holders—and
thereby created an artificial insolvency. They seek to exploit that artificial insolvency to take
unfair advantage of section 502(b)(6)’s cap on certain lease rejection damages. Dynegy Inc.’s
scheme, if successful, would turn the Bankruptcy Code on its head by allowing Dynegy Inc. to
extract and retain much of the value of the Debtors and reap the benefits of the prepetition fraudulent transfers that rendered the Debtors artificially insolvent and caused them to file for
bankruptcy relief in the first instance.
Dynegy Inc. caused the Debtors to file these bankruptcy cases in the wake of three state
court lawsuits, including one filed on November 4, 2011, by the PSEG Entities, all of which
allege that Dynegy and certain members of the Control Group engaged in actual or constructive
fraud when they rendered Dynegy Holdings artificially insolvent by engaging in a restructuring scheme designed solely to benefit Dynegy Inc. and its shareholders, including Icahn Capital and Seneca, at the expense of Dynegy Holdings and its creditors.3 <<
Everyone knows the truth and governments must act.
Bankruptcy of AbitibiBowater, under the law 11, is legalized fraud. The question that arises is: Why management has opted for this option to solve the problems of financing of the company? Because it allowed them to have the same rewards, that in normal times, and in addition, to get rid of the old shareholders. So, bonus rewards, options and shares given in the emergence, plus bonuses retirement and all this without any penalty for mismanagement of management, who said all along that the restructuring that the company was worthless. What Mr. Rebello denounced Parliament of the Québec government.
So the LACC and the law 11 bankruptcy no longer have the credibility to judge a such cause as it encourages fraud legalized by legislation that protects and promotes the rewards of a mismanagement of Management
Thus, if only a living wage would be allowed in bankruptcy under the application of this law, and no bonus, option, distribution shares, or retirement incentive would be allowed during the restructuring, AbitibiBowater would not have gone bankrupt. This is what the government should understand. and that's the truth.
Consequently, Justice Canada and the U.S. government must act, because everybody knows it. This is for the survival of our world capitalism, which needs to be reformed. The CCAA and Chapter 11, are outdated because it can not prevent such scams. George Soros, Warren Buffet, the outraged Occupy Wall Street and lawmakers denounce it, too. So for a better capitalism, you must act in this case. We can not give rewards to a management that has not won ...........................
Lumber Up Now -- PPT having 1a tough time
The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty
Submitted by Tyler Durden on 11/17/2011 14:19 -0500
• Barack Obama
• Bond
• Cronyism
• MF Global
• Reality
Presented without comment, merely to confirm that the market as we know it, no longer exists.
BCM Has Ceased Operations (source)
Posted by Ann Barnhardt - November 17, AD 2011 10:27 AM MST
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.
Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds. As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.
And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.
Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.
Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.
As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”
With Best Regards-
Ann Barnhardt
Thanks for the comment (attached)
I noticed a couple of links on the subject (below). Had trouble with the forest talk link -- so the information is below.
AbitibiBowater’s compensation package for their new Chief Financial Officer
November 16th, 2011 | Posted in Misc. | 1 comment »
Jo-Ann Longworth took over the position of Senior Vice President and Chief Financial Officer of AbitibiBowater (now Resolute Forest Products) when William G. Harvey stepped down from the position on August 31, 2011.
In AbitibiBowater’s recent quarterly statement, Longworth’s salary and Harvey’s compensation were made public.
William G. Harvey’s Severance
William G. Harvey resigned from his position of Chief Financial Officer as of August 31, 2011.
Terms of departure include:
Severance Pay = $1,303,681.44
Retroactive Pay = $42,000
+ Vacation Pay (for all accrued but unused vacation time + 12% of base salary earned in 2011)
+ Short Term Incentive Plan Bonus pro-rated for 2011
+ Long Term Incentive Plan Bonus
As a condition of receiving the severance pay, Harvey agreed to waive all claims against the company, except the following amounts:
$252,268 for regular and synergy bonuses pursuant to the 2008 Annual Incentive Plan
$133,279 related to the Executive’s relocation process following the Abitibi/Bowater Merger (without any admission from the Company that the Executive did relocate to Canada)
$135,000 for education allowance
$10,208.19 for reimbursement of tax penalty
Each of these will be settled, if and when allowed, to the extent provided in accordance with applicable bankruptcy rules and procedures.
William G. Harvey’s Consulting Agreement
For 7 months after his termination day, Harvey will provide consulting services to the new Senior Vice President and Chief Financial Officer.
Details:
less than 20% of his previous worked hours
Consulting fees: $40,000 / month
Professional fees: not to exceed $10,000
will provide all consulting services from the USA
Jo-Ann Longworth’s Salary and Compensation Package
Annual Base Salary: $350,000 (Canadian funds)
Short Term Incentive Plan: targeted at 100% of base salary for 2011, with opportunity to earn 150%. (overall maximum incentive payout cannot exceed 7% of company’s free cash flow in 2011)
Long Term Incentive Plan: Likely 125% of base salary for 2011 – to be determined by Board of Directors
Pension Plan – Employee contributes 5% of eligible earnings (to a limit of $245,000), Company contributes 20.5% of eligible earnings)
Vacation – 5 weeks a year
Allowance – up to $12,000/yr to cover items such as club membership, fiscal and financial advice, and tax preparation
Annual Medical Examination provided by the company for Longworth and her spouse (up to $1,500 per person)
Parking
Source: AbitibiBowater’s quarterly report for the period ending September 30, 2011
------------------
Old Press releases
December 17th, 2010 | Posted in Financial News | 12 comments »
AbitibiBowater recently announced that David J. Paterson will be resigning from his position as President and Chief Executive Officer of the company, as well as the Board of Directors, effective January 1, 2011.
Richard Garneau, currently a member of the board of directors, will success Paterson.
Now I bet you are wondering what Garneau might earn in his new role? And I bet you would also like to know how sweet Paterson’s exit package was??
Well, here are the numbers:
RICHARD GARNEAU’s numbers:
Annual Base Salary: $765,000
Incentives: Eligible for discretionary incentive award of 50% – 150% of his annual base salary based on performance targets established by the board of directors (expected to be 100% for Garneau)
Pension: Company will contribute 22% of his annual base pay & incentive awards, Garneau will contribute 5%. In 2011, it is expected that Mr. Garneau will be awarded an initial grant equivalent to 225% of his annual base salary.
Severance: If Garneau is involuntarily terminated, he will receive a lump sum payment equal to 6 weeks of his pay (sum of annual base salary and the average of the two last incentive awards paid under an annual incentive plan) for each year he was with the company. If Garneau leaves involuntarily within 2 years, he will receive 3 times his eligible pay (sum of annual base salary and the average of the two last incentive awards paid under an annual incentive plan).
Perquisite Allowance: $16,000 per year
Vacation Time: 5 weeks a year
Club Membership: Yes
Expenses: Reimbursed by the company.
DAVID PATERSON’s Severence
Severance Pay: $1,338,000 (equal to 100% of his base salary, and the average of his last two bonuses)
Restructuring Recognition Award: $765,000
Incentive Award: $430,000 (on July 31, 2011)
Legal Fee and Expenses Reimbursement: max $35,000
Consulting Fees: For the first six months of 2011, Paterson will serve as a consultant to the company, and will be paid consulting fees of $150,000 per month.
Source: AbitibiBowater
Message for Cyber-Investigators.
The U.S. government must cancel bonuses of 200 million that the management of AbitibiBowater they are paid during the restructuring, it is a shame. Like Fannie Mae, this is the indecency and the U.S. Senate must also act in this matter.
http://www.foxnews.com/politics/2011/11/01/republican-senator-calls-on-obama-to-cancel-fannie-mae-freddie-mac-bonuses/
In Canada, the bonus were disconcerting in commission parlementaire of the Quebec government. This failure has also been denounced by George Soros as a manipulation from placement CDS. http://www.francoisrebello.com/?p=1938
This was also denounced by MP François Rebello to Occupy Wallstreet in Montreal. http://www.cyberpresse.ca/debats/opinions/201110/17/01-4458120-de-lindignation-a-la-legislation.php
Mr. Garneau has set an example by giving up 1.7 million bonus while the company was in recovery. He leads by example and this is a big step for justice and balance of sound management.
Thus, the bonus during the restructuring are the indecency and must be seized and given to former shareholders of the company.
While this issue must be resolved for the morality of justice and a healthy development of world capitalism.
miss you guys, we should have recovered here!
How can I trace the topic when that board is gone? Are you going to move somewhere else?
Thank you for the heads up in advance!
k.
Again Thank you.
Thank you for the recent update on Nov. 2nd. All is well (or at least better). Though still very bitter at the overall fraud in the equities and bond markets.
Watching MF Global situation with keen interest, as I believe that there will be many more individuals and firms hurt over this. Not sure where it all stops.
Also watching the Dynegy situation closely. Many similarities with the Abitibi case.
Just wanted to respond before the board disappears (probably around the 7th).
Thanks for the update.
Everything reads with great interest these days. Wondering how Peter's lawsuit is going. Maybe he joined in with the Alabama Group. I had not seen anything in a long while on it.
Right now, enjoying the MF Global and Dynegy stories.
Notice main algorithm programs are holding Abitibi, West Fraser Timer and Tembec pretty much constant.
Unless the PPT (Plunge Protection Team) starts shaking things up, more and more people will come out and say it is all rigged.
Even CNBC is not afraid to have guests on any more saying it is rigged.
Possible fraud on the MF Global situation = co-mingling of dollars and settle at the end of the day. Wonder how their clients feel right now?
Bill C-21. BIG LAW.
Depending on the strength of this law, as I understand, if the shareholders of Alabama is successful on an accounting fraud on the part of management repair of all those shareholders who have been harmed would be automatically compensated.
The case is certainly not complete. The SEC, GRC and the AMF are exchanged communications on cases of fraud. May be Abitibibowater IS Resolute to repair.
New law taking effect Nov. 1 in Canada. BIG LAW.
http://www.justice.gc.ca/eng/news-nouv/nr-cp/2011/doc_32663.html
Backgrounder: White Collar Crime
Bill C-21 Standing Up for Victims of White-Collar Crime Act
The offence of fraud can include securities-related frauds such as Ponzi schemes and accounting frauds that overstate the value of securities. It also includes mass marketing fraud, mortgage and real estate fraud, and many other deceptive practices. There are always two elements that characterize fraud – deception or some other form of dishonest conduct, and depriving another person of their property or putting their property at risk.
Fraud can have a devastating impact on the lives of its victims, including loss of life savings and feelings of humiliation for having been deceived into voluntarily handing over their property. Bill C-21 the Standing Up for Victims of White-Collar Crime Act, amends the fraud provisions of the Criminal Code by providing tougher sentences for those who victimize citizens. Bill C-21 came into force on November 1, 2011.
Sentencing
This legislation will better ensure that sentencing for fraud, and in particular large-scale fraud, reflects the serious nature of the crime. These measures shape the sentence that can be imposed on the offender and include:
mandatory jail time of at least two years for fraud over $1 million regardless of the number of victims involved;
additional statutory aggravating factors that can be applied to sentencing in fraud cases such as:
if the offence had a significant impact on the victim, given the victim's particular circumstances, including his/her age, health and financial situation;
the offender concealing or destroying records relating to the fraud or the disbursement of proceeds of the fraud;
the offender failing to comply with applicable licensing rules or professional standards; and,
the magnitude, complexity, and duration of the fraud and the degree of planning that went into it.
allowing the court to impose a prohibition order to prevent the offender from having employment or working in a volunteer capacity that involves having authority over other people's money.
Restitution
Additional measures in the legislation improve the responsiveness of the justice system to meet the needs of victims of fraud through restitution and community impact statements. These amendments will increase the use of restitution orders in fraud cases by:
requiring judges to consider restitution from the offender in all cases of fraud involving an identified victim with ascertainable losses. Judges are now also required to provide reasons in cases where a victims has sought restitution but it has not been ordered;
requiring the Crown to advise the court if reasonable steps have been taken to provide victims with an opportunity to indicate whether they are seeking restitution for their readily ascertainable losses. This ensures that sentencing does not proceed without consideration of restitution or without an opportunity for victims to indicate to the Crown that they wish to seek restitution; and
providing victims with an optional form to indicate that they want the Crown to seek restitution from the offender and to set out their ascertainable losses.
Community Impact Statements
The Criminal Code currently provides that in determining the sentence to be imposed on an offender, judges must consider victim impact statements that have been submitted to the court. A victim impact statement is a written statement by a victim of crime that describes the harm done to them and, more generally, the effect or impact that the crime has had on his or her life.
In some fraud cases, the impact of the crime can extend to other persons and not only to those who have suffered direct financial losses. Therefore, a final measure under this Act explicitly allows courts to also consider Community Impact Statements. A Community Impact Statement may describe the losses suffered by the community, such as a neighbourhood association, business association or seniors group, as a result of the fraud.
-30-
Department of Justice Canada
November 2011
How generous of the CEO. Don't worry he'll make it up later, if he has not already now. What about us old shareholders, we get nothing.
http://www.thestar.com/business/companies/article/1078864--abitibibowater-ceo-gives-up-1-7-million-to-cost-cutting-drive
Pitt77 -- If this makes things easier
You should see the naked shorts on MF Global. All the best.
SHAREHOLDER LAWSUIT -- if you still believe that it will do some good -- give these guys a call.
For those who are institutions or invidividuals with losses in excess of $100,000
TRIPP LEVY PLLC Announces Investigation of MF GLobal
NEW YORK--Tripp Levy PLLC is investigating the Board of Directors of MF Global Holdings Ltd. for possible breaches of fiduciary duty and other violations of federal and state law in connection with the bankruptcy and sale of the Company.
The investigation concerns whether the MF Global Board of Directors breached their fiduciary duties to stockholders and violated federal securities laws by engaging in a pattern of behavior and omitting material information concerning the company's true financial condition and hedging bets.
If you own common stock in MF Global and suffered a loss in excess of $100,000 and wish to obtain additional information, please contact us at 877-772-3975 or contact@tripplevy.com
Agree, time is short
Cdn dollar dropping now. November 7th -- New Name. Steelhead IndsiderPurchase? Huh?
WFT and Tembec and Abitibi big lumber names.
All in the name of union busting. Flarhety said publicly that the industry was going to be restructured. Green Transformation Credits are from the Billion that the US Gov't stole from Cdn prodcuers.
If you have lost money, then file a class action. 1It will be the only way to get your money back.
Yesterday on CNBC, Michael Moore was talking about the Wall Street rigged Casino. Things must be really bad in terms of dishonesty -- M.Moore was not even allowed in or around NYSE.
End.
1003113500000410
The time is now short. How long do we have?. Is that there are others who have managed to find a law firm. If so, can there be to inform us. Very important. Thank you, KFC44, It's always interesting of read you.
Agree -- File a Class Action
You are going to be absolutely s1ick to see how high Abitibi (Resolute) goes over the next 8 months, as the derivative unwind gets going.
It's a fraud. It's all a fraud.
See link from CNBC "occupy Wall Street" today.
http://video.cnbc.com/gallery/?video=3000051727
Secrets Of The
Plunge Protection Team
The Four Derivative US Dictators
By Michael Edward
5-13-4
There are just four people who control all of the U.S. markets through their use of dangerous and explosive DERIVATIVES. They are risking the assets and retirement funds of all Americans. Because of their manipulations, especially since 2001, U.S. financial markets are now based on the gambling whims of a special fraternity of Federal Government DERIVATIVE dealers.
This group is known among Wall Street as the Plunge Protection Team (PPT). Their "official" role was to prevent another 1987 "Black Monday". They have the entire U.S. Treasury at their disposal to manipulate the markets through DERIVATIVES (futures options). In other words, they are using the assets behind the U.S. Treasury to rig the prices of commodites (gold, currencies, etc.) and stocks.
This fraternity comprises of Fed Chairman Alan Greenspan, the Secretary of the Treasury, and the heads of the SEC and the Commodity Futures Trading Association. It works closely with all the U.S. exchanges and Wall Street banks, including the largest DERIVATIVE risk holders Citibank and JP Morgan Chase.
Few people are aware of Executive Order 12631 signed by Ronald Reagan on March 18, 1988. In a nut shell, this is the "authority" behind the four dictators and the [sic] "laws" and "regulations" that have backed their casino-style DERIVATIVE gambling spree since 2001. Here are some highlights of this Executive Order to ponder:
Executive Order 12631 - Working Group on Financial Markets - Mar. 18, 1988; 53 FR 9421, 3 CFR, 1988 Comp., p. 559.
"By virtue of the authority vested in me as President by the Constitution and laws of the United States of America, and in order to establish a Working Group on Financial Markets, it is hereby ordered as follows:
Section 1. Establishment. (a) There is hereby established a Working Group on Financial Markets (Working Group). The Working Group shall be composed of:
(1) the Secretary of the Treasury, or his designee; (2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee; (3) the Chairman of the Securities and Exchange Commission, or his designee; and (4) the Chairman of the Commodity Futures Trading Commission, or her designee.
Section 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.
(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.
Section 3. Administration. (c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions."
Get out of the markets before the inflated DERIVATIVE bubble bursts.
....... Excerpt from the Secrets of the PPT
End
Movements Occupy Wall Street, in Montreal. Expose the bankruptcy of AbitibiBowater, and put into question the toxic investments CDS
Toxic financial products banned in Quebec? 14 octobre 2011 à 16h55
"The AMF should be the study of complex financial products and tell the SEC for example, in some cases, that product is not authorized for Quebec," he said.
Mr. Rebello has particularly against credit default swaps (credit default swaps or CDS), a product that allows investors to make money in business failures. He thinks that this product should be banned, but believes that the AMF should require a much greater transparency on the part of its holders.
In the case of bankruptcy of AbitibiBowater, there were $ 500 million and the directors of the company may have been able to hold, suggested by Mr. Rebello.
"In finance as in the sport, should not be allowed to bet against his team," he insists.
"When it came time to obtain the consent of the creditors of Bowater for the liquidity to avoid bankruptcy, almost half refused," he said, suggesting they may have an interest in bankruptcy occurs because they had CDS. No one could ever prove the veracity of this information.
http://tvanouvelles.ca/lcn/economie/archives/2011/10/20111014-165538.html
-----------------------------------------------------------------
Toxic financial products banned in Quebec?
While the movements Occupy Wall Street grows and spreads to Montreal and Toronto, a member of the Parti Québécois supports the Financial Markets Authority (AMF) should play a more proactive role in the supervision of financial products complex for sale by large financial New York and London.
In a letter of support for Quebec outrage against the financial system, the founder of Responsible Investment Group and member of La Prairie, François Rebello, says that the policeman Quebec market to assert its prerogatives and refusing, in some cases The marketing of a product when it is misunderstood or considered dangerous.
Contrary to popular belief, Mr. Rebello says that Quebec has the power to act on trade in securities.
"We have reciprocal agreements with other regulatory agencies. But we must ensure that their standards match ours, "he said.
"The AMF should be the study of complex financial products and tell the SEC for example, in some cases, that product is not authorized for Quebec," he said.
Mr. Rebello has particularly against credit default swaps (credit default swaps or CDS), a product that allows investors to make money in business failures. He thinks that this product should be banned, but believes that the AMF should require a much greater transparency on the part of its holders.
In the case of bankruptcy of AbitibiBowater, there were $ 500 million and the directors of the company may have been able to hold, suggested by Mr. Rebello.
"In finance as in the sport, should not be allowed to bet against his team," he insists.
"When it came time to obtain the consent of the creditors of Bowater for the liquidity to avoid bankruptcy, almost half refused," he said, suggesting they may have an interest in Bankruptcy occurs because they had CDS. No one could ever prove the veracity of this information.
Mr Rebello said that the commercial paper, which was so bad at the Caisse de depot et placement du Quebec, could be blocked by the AMF because it was too complex and poorly understood.
Joined by Silver, Sylvain Théberge, spokesman of the AMF, said that Quebec was one of the first states to adopt legislation governing derivatives, in February 2009. "We recognized it was a bit before the jungle, but the legal parameters governing derivatives have since been strengthened," he said.
Mr. Théberge has acknowledged that the MFA had never "blocked" the introduction of a derivative. To his knowledge, the AMF had never occurred either to ask the issuers of derivatives to make changes to their products before selling them in Quebec.
The Montreal Exchange is a mecca of derivative transactions in the world.
Name change. When you change your name, this is not you proud of your past. It is also a real shame for justice. The AMF and the SEC have not been hard on this issue. wallstreet protesters are right to denounce the financial capitalism. They have no morals, for anyone. The scam is the new standard. I hope that Peter has won. The problem is that this issue is political and disturb the government.
--------------------------------------------------------------
The AMF torpedo the MEDAC | Michel Girard | Girard Michael
Despite its limited financial resources, the MEDAC conducted titanic struggle against the exploitation of investors in the world of finance. That the monks of publicly traded companies are a dim view of the work of MEDAC, it is fair. But the AMF (AMF) decided to cut dramatically the food at MEDAC, there is a very bad omen for the protection of small investors.
No sooner does he come to replace Jean St-Gelais at the head of the Financial Markets Authority (AMF) that even the new president, Mario Albert, finds himself struggling with, I think, a very bad financial decision that may MEDAC kill.
http://lapresseaffaires.cyberpresse.ca/economie/energie-et-ressources/201110/11/01-4456059-abitibibowater-tourne-le-dos-a-son-lourd-passe.php?utm_categorieinterne=trafficdrivers&utm_contenuinterne=lapresseaffaires_LA5_nouvelles_98718_accueil_POS25
-------------------------------------------------------------
Mr. Béland, three other directors to tender their resignation: Monique Charland, Normand Caron and Louise Champoux-Paillé.
All these departures occur when the MEDAC must find new sources of funding. Last December, the Financial Markets Authority (AMF)
MÉDAC was an organization that could save us in class, but curiously, he cut subsidies. Finally may be a coincidence, but key is bizare
-------------------------------------------------------------
(Montreal) This is called the end of an era. AbitibiBowater (ABH T.), a company as old as the pulp and paper itself, decided to get rid of his name and the difficult history behind it.
The company will rename Forest Products Determined with the acute accent, and Resolute Forest Products in English, from November 7. At about the same time, it will leave its headquarters building of the venerable Sun Life, in downtown and moved to 111 Duke Street in the City of multimedia.
"The idea is to turn the page, said the spokesman for Abitibi, Pierre Choquette. The company is very different from the company she was a year ago. "
Long financial restructuring
AbitibiBowater has just emerged from a long financial restructuring that has avoided bankruptcy. With fewer employees and less debt, the company expects to be able to survive in the difficult market for newsprint and lumber.
Crises, Abitibi has crossed some since it was founded in Ontario in 1912. The company has even been under the protection of the bankruptcy law for 14 years, from 1932 to 1946, a record in the history of businesses in Canada.
Over time, mergers and acquisitions, it bore the names of Abitibi-Price (1974), Abitibi-Consolidated (1997) and AbitibiBowater (2007).
Employee Involvement
The name of Resolute Forest Products was selected following an invitation by management to all employees. It was suggested by two of them working in factories far away from each other, either in Ontario and Tennessee. Some 1400 suggestions of names were collected from employees.
"It's clearly a name longer than for an English audience for French," said Jean-François Ouellette, a professor of marketing communications at HEC Montreal. In English, the word evokes the resolute determination as solved reminds resigned, he said. "It resolves to something you can not stop," he illustrates.
But if he gets into the skin of an English speaker, Professor likes the new name of Abitibi. "It's a beautiful name," says Jean-François Ouellette.
Frederic Metz, an expert in image and retired professor at UQAM, is not the same thing. "It looks a little desperate company," said he.
The two experts also differ in opinions on how AbitibiBowater proceeded to find a name. According to Jean-François Ouellette, the company has shown innovation by appealing to its employees. According to Frederic Metz, is the worst thing to do than to suggest to employees that they are better than specialized firms to find a new identity to a company.
http://lapresseaffaires.cyberpresse.ca/economie/energie-et-ressources/201110/11/01-4456059-abitibibowater-tourne-le-dos-a-son-lourd-passe.php?utm_categorieinterne=trafficdrivers&utm_contenuinterne=lapresseaffaires_LA5_nouvelles_98718_accueil_POS25
Disagree -- Great Name
Check out the meaning!! Nailied it (imo)
Resolute Employment may put up a fuss, but it should stick.
Wonder how Peter's Lawsuit is coming along.
Former shareholders missed the boat by not filing a class action. After November 7th -- any action will be buried. Too late.
Tembec already telling everyone lumber is going up. Unwind of PPT derivatives is around the corner.
MM's can barely keep lid on Abitibi shares. By mid-Feb -- I think you will see a business combination. Prem said buyout recently,, but I think that is just to play with everyone -- same with the talk about the Catylst merger.
"Resolute Forest Products"! What a stupid name.
Abo Merger with Catylst Paper?
Wonder who paid for thi1s article to be written on Forest Talk?
Maybe the same guys who are trying to diffuse the conversation about a possible Merger with Tembec?
Irene looks like it will side-swipe US eastern seaboard? Maybe some ST lumber demand.
-----------------------
Could Catalyst Paper merge with AbitibiBowater?
August 23rd, 2011 | Posted in Misc. 1| 3 comments »
Catalyst Paper is seeking to merge with another company, and AbitibiBowater may be the most likely possibility.
That is the topic of Gordon Hamilton‘s analysis of Catalyst Paper in The Vancouver Sun yesterday.
Richard Garneau is an obvious connection between the two companies. Now the president of AbitibiBowater, Garneau is the former president of Catalyst Paper. He was worked at forest company Donohue before Abitibi bought it in 2000.
When Kevin Clarke took over as the CEO of Catalyst Paper last year, he said in an interview that positioning the company for a 1friendly takeover was one of his key objectives.
Catalyst Paper has a excellent fibre sources in British Columbia and is geographically positioned as the largest newsprint producer in western North America, but it has struggled with its debt load that now outweighs the estimated $40 million value of the company’s equity.
Read about Catalyst Paper’s options 72111510275000
End.
-----------------
Who and how can start class action?.
I am ready to put my money for that.
55milj. hectar forrest can not zeroing just like this.
This case needs finally solution.
KFC,
See docket 4701 regarding the Haack situation...looks like they just shoved him into a lower class and took it off the agenda, with Carey's tacit approval of course...I'm kinda surprised that Haack is tolerating that sort of treatment...
I thought it was interesting to see that Carey is now crossing out the "chief" in "chief justice"...was he demoted or something?
Who and when is a class action gonna be filed? They seem to proliferate for these fly by night penny stocks, but when it comes to the corrupt bankruptcy of the worlds largest forestry company you cant find a lawyer who wants in? what gives?
Also...earnings out on the 9th after market close with cc on the 10th before market...will be interesting to hear...
Here is part of the DTC Info
Any class action lawyer will tell you since they are going back to 2009, then -- the DTC is now in clear admission of illegal activity.
--------------
Non-Confidential
DTCC is now offering enhanced access to all important notices via a new, Web-based subscription service. The new notification system
leverages RSS Newsfeeds, providing significant benefits including real-time updates and customizable delivery. To learn more and to set up
your own DTCC RSS alerts, visit http://www.dtcc.com/subscription_form.php.
To remove your name from the former system of email notifications, send a message to unsubscribe@dtcc.com. 1
#: B0846-11
Date: August 5, 2011
To: All Participants
Category: Settlement
From: Settlement Department
Attention: Settlement Manager/Managing Director/Cashier
Subject: Clean up of Aged Fails in Select Globally Locked CUSIPs
DTC will support a program to facilitate the industry's clean up of aged fails in select globally
locked securities. This notice details the information necessary for firms to participate in this
program, which is scheduled to occur during the period August 15, 2011 through August 19,
2011.
Background
DTC may impose certain restrictions on a security in situations where DTC may become aware of
certain potentially illegal or otherwise questionable features of a security, its issuer or other principal
parties. In addition, DTC may place restrictions when it has been informed by the issuer or its agent,
regulators or law enforcement, or has other compliance concerns that its Cede & Co certificate
inventory has been compromised due to unauthorized, altered, fraudulent or counterfeit share issuance.
If DTC reasonably suspects that all or a portion of its street name holdings of a security, may not be
fungible and freely transferable as required for DTC services, it may decide, with respect to that
security, to chill one or more of its services or place a global lock on all services, as it deems
appropriate.
Impact of a Global Lock and Trade Fails
A global lock on a security prevents the security from being transferred on the books of DTC and
otherwise restricts any DTC activity with respect to the security. For so long as the global lock is in
effect, Participants are unable to settle any further trades in that security, as their inventory is frozen
and settlement of pending trades will fail. If counterparties nevertheless continue to trade in a security
which is globally locked and those trades are submitted to DTC for settlement, those trades will also
fail and be rejected in DTC’s system.
In connection with certain designated CUSIPs (see Exhibit A attached), although DTC issued an
Important Notice to its Participants to advise that the global lock was implemented, many Participants
Non-Confidential 2
did not immediately stop trading in these securities and additional trades occurred, so that firms
experienced a growing number of trade fails.
DTC has been working proactively with the industry to increase awareness of our global lock process,
to eliminate these difficulties in future. DTC also enhanced its procedures to expedite the release of
any Important Notice reflecting a global lock, so firms can promptly halt trading in affected securities.
Additionally, DTC implemented on June 10, 2011 a global lock reason [code] on its security master
file and related outputs (ELIS and DWIZ files - see important notice B-0811-11 dated May 24, 2011 -
http://www.dtcc.com/downloads/legal/imp_notices/2011/dtc/ope/0811-11.pdf) to allow Participants to receive
an automated notification in the event a global lock occurs. This enhancement provides Participants
the ability to update their systems to automatically block future trading of affected securities, as well as
alerting Compliance areas of the Participants so that they may investigate activity related to these
securities.
Despite these improvements, Participants and DTC have a legacy issue of accumulated trade fails that
occurred prior to these enhancements.
Proposed Solution
Working with the Participants, DTC identified a number of options and determined that the preferred
solution is to lift the global lock on designated CUSIPs for a limited period of time, to allow
Participants to take appropriate steps (including any appropriate segregation updates) to make
deliveries that will resolve outstanding fails in the designated CUSIPs. DTC will report all such deliver
orders during the specified period to the Securities and Exchange Commission.
DTC cautions participants that, if a participant were to make or receive deliveries to or from a
party other than the original counterparty or the NSCC assigned counterparty, which resulted in
the fails in the designated CUSIP, change of such counterparty to the transaction likely would be
deemed to be effecting a new transaction.
Securities subject to a trading halt by the Commission will be excluded from this program. The
attached list will be re-verified during the Amnesty period and if any securities are subsequently found
to be subject to a trading halt, they will be excluded at that time and Participants will be informed via a
subsequent important notice.
As to these designated CUSIPs, however, DTC will not lift the related deposit chill. If there are failed
deliveries in these CUSIPs that are dependent upon physical securities held outside of DTC, settlement
of those trades must be effected by physical delivery outside of DTC.
As outlined below, DTC will offer Participants the opportunity to make the necessary updates and
deliveries to complete their failed transactions during a specified limited time period, as follows:
DTC will lift the global lock and the SEG chill on Friday night, August 12, 2011 until
approximately 5:00 PM Friday night August 19, 2011. DTC will maintain chills on other
services including deposits and withdrawals to prevent any unintended transactions from
occurring. This update will permit participants the ability to send in their memo seg
instructions and permit them to segregate or release positions in these securities for several days
in advance of the delivery time period outlined below,
Non-Confidential 3
The Eligible Securities (ELIS) files will systematically reflect the global lock and SEG chill
removals and are typically available to participants between 7:30 PM and 8:00 PM EST each
day.
The Data Delivery Service (DWIZ) change files will also reflect the global lock and SEG chill
removals and are typically available to participants between 9:00 PM and 10:00 PM EST each
day.
In addition, on the evening of August 17, 2011, DTC will also remove the DO chill on all
CUSIPs identified below. This change will also be reflected in the ELIS and DWIZ files
created on the night of August 17, 2011. This will allow all participants to submit deliver
orders to DTC for processing on the next 2 business days, August 18 and August 19, 2011.
Obligation Warehouse (OW) users should include the OW control number on all DOs to ensure
that the settlement status associated with these obligations is updated in the OW.
These CUSIPs will maintain this “unlocked” status until the night of August 19. This will
permit participants to have two business days to process instructions against an ELIS and
DWIZ files that contains the changes to the affected CUSIPs.
DTC will continue to accept MSEG, SEG and Deliver Order and reclaim instructions for all
CUSIPs identified below until the applicable valued cutoffs occur or approximately 5:00 PM on
August 19, 2011.
Prior to the night cycle beginning on August 19, 2011, DTC will restore all CUSIPs to their
original status by reinstating the SEG and DO chills as well as the applicable global locks. Any
future dated transactions or additional input after the status is reinstated, e.g., memo seg, Night
Deliver Orders will reject.
If you have any questions regarding this notice, please contact your Relationship Manager.
Non-Confidential 4
# CUSIP Security Description Symbol Date of Action
1 913513107 UNIVERSAL FOOD & BEVERAGE INC N/A 04/28/11
2 48254P106 KMA HOLDINGS MCDA 04/25/11
3 57059N109 MARKETING CONCEPTS INTERNATIONAL MCCI 04/15/11
4 572356202 MARSHALL HOLDINGS INTERNATIONAL MHLI 04/15/11
5 69372L850 PACEL CORP PCLO 04/15/11
6 81213Y108 SEALIFE CORP SLIF 04/15/11
7 933706103 WANNIGAN CAPITAL CORP N/A 04/15/11
8 936902501 WASATCH PARM INC WSHP 04/15/11
9 08520E103 BERMAN CENTER INC BRMC 03/31/11
10 47188V205 JAVA DETOUR INC JVDT 03/31/11
11 54141Y102 LOGISTICAL SUPPORT INC LGSL 03/31/11
12 74266D303 PROELITE INC PELE 03/31/11
13 98953T107 ZICIX CORP ZICX 03/28/11
14 169382108 CHINA DIGITAL MEDIA CORPORATION N/A 03/18/11
15 37990T100
CHINA MOBILITY SOLUTIONS INC
(NOW KNOWN AS GLOBAL PEOPLELINE)
GPPL 03/18/11
16 554042101 M-WISE INC MWIS 03/18/11
17 71943E100 PHYSICAL PROPERTY HOLDINGS INC PPYH 03/18/11
18 74161T106 PRIMEGEN ENERGY CORP PGNE 03/18/11
19 80917T308 SCORE ONE INC SREA 03/18/11
20 81941R102
PINGCHUAN PHARMACEUTICALS INC
(NOW KNOWN AS SHANDONG ZHOUYAN SEED &
NURSERY)
SZSN 03/18/11
21 98159A100 WORLDWIDE BIOTECH AND PHARMACEUTICALS WWBP 03/18/11
22 003865102 ABSOLUTEFUTURE.COM AFTI 03/03/11
23 12619H100 CO2 TECH LTD CTTD 03/03/11
24 727563108 PLASTICON INTERNATIONAL INC PLNIQ 03/03/11
25 847248200 SPATIALIGHT INC SPLT 03/03/11
26 92922N101 WAMEX HOLDINGS INC WAMX 03/03/11
27 137693107 CANNON EXPLORATION CNEX 02/17/11
28 456635101 IFINITY MEDICAL GROUP IMGR 02/17/11
29 83420E107 SOLEI SYSTEMS, INC. SOLI 02/17/11
30 189098106 CLOUD CENTRIC SYSTEMS INC CLDR 02/03/11
31 86273M100 STRATEGIC MANAGEMENT INC SMPP 02/03/11
32 01551R101 ALGAE FARM USA INC COM ALGF 01/27/11
33 054617105 AXIS TECHNOLOGIES AXTG 01/21/11
34 37950D103
ZCOM NETWORKS INC (N/C TO GLOBAL GATEWAY
MEDIA & COMM)
GGMC 01/21/11
35 422463109 HEATHROW NATURAL FOOD AND BEV HRNF 01/21/11
36 554187104 MACADA INC MCDA 01/21/11
37 670762202
PERIHELION GLOBAL INC N/CTO NY MET
HOLDINGS
NYMH 01/21/11
38 682347208 141 CAPITAL INC ONCP 01/21/11
39 749283206 RBID.COM INC NEW RBID 01/21/11
40 749318101 RCC HOLDINGS INC RCCH 01/21/11
41 78249M603 RUSSELL INDUSTRIES, INC RUSL 01/21/11
42 886352202 TIDALWAVE HOLDINGS INC TWVH 01/21/11
43 71643L107 PETRO AMERICAN CORP PTRZ 11/26/10
44 922576202 VELTREX CORP VLXC 11/15/10
45 05546H102 BIH CORPORATION BIHC 10/01/10
46 749126207 QURI RESOURCES INC QURS 10/01/10
Non-Confidential 5
# CUSIP Security Description Symbol Date of Action
47 076012202 BEDERRA CORP BEDA 09/16/10
48 37364Q104 GEOTEC INC GETC 08/17/10
49 346196108 FOREST RESOURCES MNGMT FTRM 06/11/10
50 849109103 SPONGE TECH DELIVERY SYSTEM SPNG 06/02/10
51 638691105 NATIVE AMERICAN ENERGY NAGP 05/27/10
52 00725F308 ADRENALINE NATION ENTERTAINMENT NA 05/14/10
53 00764K101 AEGIS ASSESMENTS, INC AGSI 05/14/10
54 12507U106 CDI DEVELOPMENTS, INC NA 05/14/10
55 16938L106 CHINA GOLD CORP CGDC 05/14/10
56 29445M103 EQUIPMENT AND SYSTEMS EQSE 05/14/10
57 380795104 GOLDEN APPLE OIL AND GAS GAPJ 05/14/10
58 38144Y102 GOLDMARK INDUSTRIES INC GDKI 05/14/10
59 39573M106 GREENSTAR LIGHTING GRLH 05/14/10
60 46262T102 IPACKETS INTERNATIONAL IPKL 05/14/10
61 54147U104 LOM LOGISTICS INC LOMJ 05/14/10
62 63008E109 NANO FORCE INC NNFC 05/14/10
63 92855W102 VIYYA TECHNOLOGIES INC VYON 05/14/10
64 53219E808 LIFELINE BIOTECHNOLOGIES, INC LLBO 05/03/10
65 84915Q100 SPOOZ, INC. SPZI 05/03/10
66 G4411NAA5 HERITAGE INV CAP LTD, Ltd 9% 8/31/2010 N/A 04/21/10
67 607587409 MODERN ENERGY CL B MDRG 03/25/10
68 607587201 MODERN ENERGY N/A 03/15/10
69 39573P208 GREENSTONE HOLDINGS INC GSHN 02/23/10
70 272023102 EAST DELTA RESOURCES CORP N/A 02/05/10
71 01374L109 ALCHEMY CREATIVE INC ALMY 01/26/10
72 08782W106 BEVERAGE CREATIONS INC BVRG 01/26/10
73 62847C100 MY VINTAGE BABY MVCY 01/26/10
74 61944V102 MOSAIC NUTRICEUTICALS N/A 01/12/10
75 256647108 DOLL TECH GRP INC DTGP 10/13/09
76 169364106 CHINA ADNET ENTERPRISES CAEJ 10/13/09
77 50115V108 KSW INDUSTRIES INC* KSW 10/13/09
78 45775F104 INNOLIFE PHARMA INC INNF 10/13/09
79 53184V108 LIFE EXCHANGE INC LFXG 10/13/09
80 527299101 LEVEL VISION ELECTRO LVLV 10/13/09
81 54569N109 LOTTA COAL INC LCOL 10/13/09
82 559071204 MAGELLAN ENERGY LTD MGLG 10/13/09
83 568093108 MARINAS INTERNATIONAL INC MNSI 10/13/09
84 73035T102 POCKETOP CORPORATION* PKTO 10/13/09
85 902658103 UDS GROUP INC. COM UDSG 10/13/09
86 91021P207 UTD ENVIRO ENERGY CORP UTEM 10/13/09
87 91688L200 UPTREND CORPORATION UPCP 10/13/09
88 92909T204 VSHIELD SOFTWARE CORPORATION VSHE 10/13/09
89 98148A203 WORLD HOCKEY ASSOCIATION WHKA 10/13/09
90 929367100 WW ENERGY INC WWNG 10/13/09
91 294113105 ENZYME ENVIRONMENTAL EESO 09/30/09
92 761379106 REVENGE DESIGNS RVGD 09/30/09
93 22743P100 CROSS ATLANTIC COMMODITIES CXAC 09/30/09
94 46018A100 INT'L POWER GROUP IPWG 09/30/09
95 27031F102 EARTH BIOFUELS EBOF 06/17/09
Naked Shorts (DTC) Forced to Cover?
New Legislation? Not sure if this is a hoax, but in case anyone is interested. See link below.
What ever happened to John Haack's hearing. Checked last week and saw that no Class Action was1 filed -- maybe still in the works.
Recently saw a lot of discussion (in advance of presumably higher rates) to buy agriculture and timber assets.
DTC is forcing bankers to cover their counterfeit shares.....
http://www.dtcc.com/downloads/legal/imp_...
Harvey is out....
Looks like we are setting up
Wall Street hedges were all offsetting housing (lumber etc.). You will see it all go kaboom very soon.
Credit Default Swaps Casino
Look like it's going to come to a head real soon -- with Tricet offically saying no to Moody's and other rating agencies concerning Greece and Portugal Bonds.
You wonder if these swaps will ever be traded in the same way ever again.
You are now getting an anti1-American spin on the CDS products / rating agencies -- which may very well help in any class-action negotiations down the road.
Merger Agreement Document? (2007 and disclosure and accounting firms related directly to CDS and naked shorts). And proof that the BOD and senior management and PremW / Steelhead were aware of their use for forcing default.
Pretty easy to BK anyone these days.
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What does it take to be AbitibiBowater? It takes the combination of two of the world's largest newsprint makers -- Abitibi-Consolidated and Bowater -- into one. The merger created an industry behemoth that produces millions of tons of newsprint, commercial printing paper, and pulp. The company relies on more than 25 pulp and paper mills and 30 wood products facilities in Canada, South Korea, the UK, and the US to distribute its products to customers in about 90 countries; it is one of the world's largest recyclers of newspapers and magazines. AbitibiBowater manages or owns about 55 million acres of forestland in North America. In April 2009 the company filed for bankruptcy protection in the US and Canada
http://www.panoramio.com/photos/original/987203.jpg" style="border-bottom: 1px solid; border-left: 1px solid; width: 255px; height: 230px; border-top: 1px solid; border-right: 1px solid" alt="">http://www.ericweitzel.com/files/greenpeace_boreal_report.jpg" style="border-bottom: 1px solid; border-left: 1px solid; width: 244px; height: 231px; border-top: 1px solid; border-right: 1px solid" alt="">http://farm4.static.flickr.com/3573/3317169335_82090fb07b.jpg" style="border-bottom: 1px solid; border-left: 1px solid; width: 245px; height: 229px; border-top: 1px solid; border-right: 1px solid" alt="">http://www.montrealgazette.com/newsprint/1021375/1021375.bin%3Fsize%3D620x400" style="border-bottom: 1px solid; border-left: 1px solid; width: 237px; height: 232px; border-top: 1px solid; border-right: 1px solid" alt="">
“Canada is one of the “have” nations of the world, with more than half of the planet's fresh water by area, and 15 to 20 per cent by volume. The Great Lakes alone… contain nearly 20 per cent of all the fresh water on Earth...” (Dr. David Suzuki 1997)
With its abundance of fresh water, Canada is extremely fortunate. At AbitibiBowater we don’t take this abundance for granted.
The entire production of forest products is a water-dependent process—from the water needed to grow the forests to the water used to manufacture paper and kraft pulp.
Our Thunder Bay mills are among the largest users of fresh water in Canada. Also, thousands of our staff live and work here. So protecting our fresh water supply is a major priority for the company.
Well before harvesting, AbitibiBowater foresters plan harvesting operations leaving a buffer of trees around lakes and rivers. During manufacturing, AbitibiBowater staff ensures that the huge volume of mill water taken from the river is treated and returned to the river.
Organic material, chemicals and solid wastes are removed using sophisticated water treatment systems. The remaining waste is reused in the manufacturing process, for fuel to generate electricity, or sent out as harmless, and sometimes beneficial, landfill.
Federal and provincial government regulations monitor our water quality program. At AbitibiBowater, we’re committed to meeting, and exceeding, these stringent requirements.
All of our operations in Northern Ontario have water quality programs in place.
Pulp and paper manufacturing can be characterized as simply cooking on a giant scale. Ingredients are prepared, mixed, cooked and dried into sheets of kraft pulp—or rolls of newsprint.
That also means that there are enormous efforts made to reduce and reuse waste materials.
We begin with a huge recycling plant that feeds consumer waste paper, like your discarded newspaper or magazine, into our papermaking process.
The majority of woodchips used are waste from sawmills. The residual wood from making dimensional lumber is chipped and sent to the mill to be used.
We use bark as fuel in our power boilers to generate electricity. We remove solids from our wastewater before it is returned back to the environment and we scrub solids out of our exhaust air.
Over the past 5 years AbitibiBowater has spent millions to reduce our solid waste. We recover and reuse our kraft pulp chemicals. Even our regular garbage is collected and sent off for recycling.
The remaining solid wastes are sent off to landfill sites. But even this material is considered valuable for lining pits and for covering household garbage.
6 Month Daily
Lumber Daily
Lumber Weekly
Court Dockets:
http://chapter11.epiqsystems.com/clientdefault.aspx?pk=48d1467a-24fd-43d8-b9d0-0d00e8229671&l=1
Short Data - 2010-June-B
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