Monday, June 23, 2014

"Genco equity panel sees $97-$467M of equity value in company" $GNKOQ $GNK

From leveraged loan:

  • According to a June 20 affidavit filed with the bankruptcy court overseeing the case by Rothschild’s Neil Augustine, the panel’s valuation expert, that TEV results in a value in excess of claims that would be available for distribution to equity holders of $97-$467 million, with a mid-point of $282 million.
  • Assuming 43.57 million shares outstanding, that translates into a per-share value of $2.23 to $10.72, with a mid-point of $6.47.
  • under the company’s proposed reorganization plan, the reorganized equity is to be distributed to holders of the company’s 2007 credit agreement and convertible note claims, as well as to participants in a contemplated $100 million rights offering. Current shareholders are to receive a “gift” distribution of warrants to acquire up to 6% of the reorganized equity at a strike price based on an equity value of $1.295 billion. The warrants are valued at $30-36 million, or $0.67-0.81 per share of the company’s current equity
  • The hearing is scheduled to resume today and tomorrow in bankruptcy court in Manhattan, at which time the equity committee will make its case. These sessions promise to be more contentious.


theyenguy said...

On Monday June 23, 2014, The loose monetary policies of the world central banks have finally stirred up inflation and have finally resulted in turning investment sentiment from greed to fear, specifically fear that the world central banks’ monetary policies have crossed the rubicon of sound monetary policy, and have “money good” investments bad. Excluding the Precious Metal Mining Stocks, GDX, GDXJ, SIL, SILJ, all forms of fiat wealth, World Stocks, VT, Nation Investment, EFA, Global Financials, IXG, Commodities, DBC, and Aggregate Credit, AGG, traded lower, causing the world to enter into the final phase of the Business Cycle, that is Kondratieff Winter, providing the perfect short selling opportunity of selling from an equity market top, more specifically an Elliott Wave 5 High.

The National Bank of Greece, NBG, and Chinese Financials, CHIX, led Global Financials, IXG, lower.

Gulf States, MES, Greece, GREK, and China, YAO, led, Nation Investment, EFA, lower.

Solar Energy, TAN, Biotechnology, IBB, led World Stocks, VT lower

Gold Miners, GDX, such as EGO, Junior Gold Miners, GDXJ, such as ANV, Silver Miners, SIL, such as SLW, and Junior Silver Miners, SILJ, such as SSRI, traded higher, manifesting a blow off market top, in the Precious Metal Mining Stocks; these are no longer a viable investment opportunity.

Gulf Dividends, GULF, European Small Cap Dividends, DFE, Global Utilities, DBU, Global Real Estate, DRW, International Small Caps, DLS, China Dividends Excluding Financials, CHXF, Japan Small Cap Dividend, DFJ, Emerging Small Cap Dividend, DGS, Emerging Market Value, EVAL, and Dividends Excluding, DTN, led Yield Bearing Sectors, lower.

Closed End Funds, GCE, traded lower.

Hedged Equity ETFs, traded lower. HEDJ, DBBR, DBEM,

Natural Gas, UNL, UNG, and Oil, USO, led Commodities, DBC, lower.

While Junk Bonds, JNK, traded to a new all time high, the 30 Year US Government Bonds, EDV, led Aggregate Credit, AGG, lower.

The US Dollar, $USD, traded lower to close at $80.33 as the Canadian Dollar, FXC, traded to a new rally high, taking Commodity Currencies, CCX, to a new rally high.

Doug Noland described money manager capitalism as being characterized by wildcat finance, where bankers waived magic wands of credit creation. The new normal economic experience of regionalism will be one of wildcat governance where regional fascist leaders warn with clubs of debt servitude.

Bloomberg reports China Beige Book Shows Economy Slowing on Investment. China’s economic slowdown deepened this quarter, as capital spending showed weakness and fewer companies applied for credit, a private survey showed

jHurt said...

Any idea what happened here yesterday?

Anonymous said...

The hearing yesterday didn't go well for equity committee. Sounds like maybe plan will be confirmed as-is.

Anonymous said...

Judge Lane sided with the creditors / against the equity committee today. The shares will get cancelled now. I imagine many retail shareholders are unable to maintain warrant positions in their brokerage accounts, so you can expect the sell off to continue and plummet once the certificates get issued.