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  • Fuwei Films 'Auction Games' Reveal Red Flags, Buyers Beware [View article]
    Answer this? Why would the proceeds have been deposited in the Bank? At best the court should only receive a transaction fee if they were only acting as an agent:

    "intentional bidder shall deposit RMB 40 million to court bank account (Jinan City Intermediate People's Court, Bank Account: Shiqiao Branch, Qilu Bank, 000000028004100000378)"

    The money should go to Weifang if it really had the shares. There is something very fishy about this development. The posting in China is quite clear as to who is calling for the auction.
    Aug 28 12:29 PM | Likes Like |Link to Comment
  • Equity Ownership In Patriot Coal Shares Threatened By Bankruptcy Proceedings [View article]
    Sam, key phrase is company friendly, not shareholder friendly. Furthermore, the court also ruled that workers will get 35% of the reorg company!!!!! Your logic of the threat of lawsuits against the company is just ridiculous and implies that every chapter 11 case will not result in the cancellation of stock. Do you even know how the process works?
    Aug 27 11:47 PM | Likes Like |Link to Comment
  • Equity Ownership In Patriot Coal Shares Threatened By Bankruptcy Proceedings [View article]
    JFF, It appears that employees only get saved if there is a reorg (they get 35% of new company). But at least the former parent company (Peabody)is responsible for the pension. I do not know what would happen in the event of a liquidation. But I can't imagine that the common shareholders would get anything.
    Aug 27 11:43 PM | Likes Like |Link to Comment
  • Equity Ownership In Patriot Coal Shares Threatened By Bankruptcy Proceedings [View article]
    Sanjay, We never said assets were not real. If they were not real there would be no reorg!!! FYI, we write far more bullish articles than bearish (if you don't include the pump and dump penny stocks scams). I am curious, what is your thesis on how the equity holders will survive this ordeal. You do realize that 35% of the reorganized company is going to employees? So that leaves 65%. Why would the bond holders have any incentive to "Really" do anything for current equity holders?

    What in these quotes would make any rationale investor think the equity will be saved?

    1. If default occurs, according to the DIP agreement, the company would have to liquidate its assets to repay the DIP principle and accrued interests incurred.

    2. there appears to be no substantial likelihood that equity will receive a meaningful distribution in these cases to justify appointment of a committee."
    Aug 27 11:38 PM | Likes Like |Link to Comment
  • Equity Ownership In Patriot Coal Shares Threatened By Bankruptcy Proceedings [View article]
    AAMRQ is a much different scenario. You had a merger in this story. Seriously, the DIP is even close to default. Just tell me where the billion dollars is coming from?

    Why don't you reference the majority of Chapter 11 cases that do nothing for the equity?
    Aug 27 11:59 AM | Likes Like |Link to Comment
  • Equity Ownership In Patriot Coal Shares Threatened By Bankruptcy Proceedings [View article]
    Well, the courts so far do not agree with the CEO. Who are you going to believe?
    Aug 27 10:10 AM | Likes Like |Link to Comment
  • K-V Pharmaceuticals - One Of The Best Risk/Reward Scenarios You'll Come Across [View article]
    As promised, we said that we would "continue to monitor the story for positive or negative developments related to the bullish or short thesis" on K-V Pharmaceuticals (OOTC:KVPHQ). We've been informed by a third-party that the U.S. Senate may take their month-long recess at the end of today's work session.

    After speaking with someone from the Majority Health Policy Office for the HELP (Health, Education, Labor, and Pensions) Committee, we’ve confirmed that the Senate is scheduled to break for recess at the end of the work day - 5:00 P.M - on Friday, August 2 (for all intents and purposes, August 5). The Senate’s month-long summer recess was originally scheduled to begin on August 5, and extend through September 6. (http://wapo.st/17mBN7q) Furthermore, as of right now, the Senate is only scheduled to meet for nine days in the month of September. (http://huff.to/17mBN7s)

    In light of this news, we are concerned that it will not be able to pass Bill S.959 (http://1.usa.gov/17mBN7t) before the September 12, 2013 Chapter 11 deadline that we discussed in our report, “New Information Sheds Additional Light on K-V Pharmaceuticals Bankruptcy Story.” (http://bit.ly/17mBKIU)

    Holding onto K-V shares at this point proves to be a much riskier proposition than it was at the time of our article. At this point, the bullish thesis depends on an equity committee being formed in order to delay the Chapter 11 confirmation process. We have significantly pared back our long position and will consider going short if we determine that the bill will not get passed by the Senate before this weekend.

    If K-V is able to resurface on the other side of the current Chapter 11 proposal, we will certainly revisit another bullish thesis. Ultimately, we do feel that Bill S.959 will pass.
    Aug 1 03:32 PM | Likes Like |Link to Comment
  • K-V Pharmaceuticals - One Of The Best Risk/Reward Scenarios You'll Come Across [View article]
    First let me premise that this is a high risk trade with a huge payoff with a small amount of capital if a few things pan out. But unlike many chapter 11 plays at least this has a glimmer of hope.

    1. The converts want a better deal. I believe they actually voiced their opposition during the reorg process. All they would care about is potentially recovering equal or more of their capital in a new plan. I expect their could be some dilution but a payout could include cash and stock. Stock has value even with significant dilution. Remember, the converts only get a small fraction of their original investment back under the current plan.

    2. I am not sure what leverage management has if a new plan actually makes current creditors whole. Equity holders may have some room to stall the process.

    3. The House is not in the picture yet. This story depends on the Senate vote which may or may not happen soon, but the bill has been hotlined. If the senate passes the bill soon you can almost be sure that you will see a new plan submitted by an equity committee. A lot here depends on the definition of "regulatory decision."

    4. Yes judge is behind current plan, but if the circumstances change he will have to consider the new facts.

    5. Why do you assume that only a bank is a viable financing candidate. Hedge funds and special situation funds make risky bets all the time. Market share has went from virtually nothing to 15 in 6 months. Why assume that they won't get to 30%?
    Jul 30 09:51 PM | Likes Like |Link to Comment
  • K-V Pharmaceuticals - One Of The Best Risk/Reward Scenarios You'll Come Across [View article]
    TST does a horrible job outlining both sides of the story, If they were not bias they should have talked about the bullish and bearish view.
    Jul 30 05:09 PM | Likes Like |Link to Comment
  • Duff Brothers Seeks To Increase Stake In Frozen Food Express To 100%: Under Board Review [View article]
    Today the Duff Brothers agreed to acquire FFEX for $2.10 per share. The takeover comes on the heels of our ET call which was acquired for $33.75 by CRM. The takeout price of $2.10 for FFEX was dead on the low-ball takeout price that we mentioned in our article, which leads us to believe business is not going so well for FFEX.
    Jul 15 09:56 AM | Likes Like |Link to Comment
  • Site Visit To Cleantech Solutions Reveals A Busy And Robustly Growing Operation [View article]
    Pleasant surprise with CLNT guidance!
    Jul 2 09:09 AM | Likes Like |Link to Comment
  • Stay A Long Way Away From Longwei Petroleum [View article]
    an update for you...Longwei Petroleum (LPIH) Dismisses Legal Action Against GeoInvesting Et Al.
    Jun 28 10:39 AM | 1 Like Like |Link to Comment
  • Stay A Long Way Away From Longwei Petroleum [View article]
    an update for you...Longwei Petroleum (LPIH) Dismisses Legal Action Against GeoInvesting Et Al.

    http://seekingalpha.co...
    Jun 28 10:38 AM | 1 Like Like |Link to Comment
  • Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
    Longwei dismissed lawsuit.

    http://bit.ly/1alE21h
    Jun 28 10:13 AM | 3 Likes Like |Link to Comment
  • Responsys: Last SaaS Standing [View article]
    JMP raises MKTG target from $14 to $18
    Jun 21 08:32 AM | Likes Like |Link to Comment
COMMENTS STATS
380 Comments
165 Likes