tag:blogger.com,1999:blog-1527840491496268397.post7020277220840939058..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Suntech Announces New Forbearance Agreement with Holders of 3% Convertible Notes ($STP)Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1527840491496268397.post-25159448491499834202013-07-28T22:09:38.602-07:002013-07-28T22:09:38.602-07:00It seems like the local and regional government wo...It seems like the local and regional government won't be able to rescue Wuxi Suntech: http://www.theage.com.au/business/china/is-chinas-debt-nightmare-a-province-called-jiangsu-20130725-2qk97.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-36434014663453730732013-07-26T10:36:23.555-07:002013-07-26T10:36:23.555-07:00Seems like we will see a USU style squeeze before ...Seems like we will see a USU style squeeze before STP heads lower.RJnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-58152147315207548622013-07-19T12:08:45.467-07:002013-07-19T12:08:45.467-07:00John,
There are 3 scenarios if a debt for equity...John, <br /><br />There are 3 scenarios if a debt for equity swap were to be implemented:<br /><br />1) Immediate conversion (if bondholders convert 100% into equity, then the equity would likely get wiped out)<br /><br />2) Conversion before the date bondholders can force STP into bankruptcy (if STP can find a way to pay bondholders ~25% or more, then bondholders would likely convert ~75% or less to equity)<br /><br />(3) Conversion after the date bondholders can force STP into bankruptcy (if a strategic investor(s) acquires STP assets or puts up capital to invest in a swap, then a conversion may be delayed further)<br /><br />The other alternatives the company has would be to 1) declare bankruptcy, 2) organize a pre-packaged insolvency, or 3) do nothing and face involuntary bankruptcy<br /><br />If STP does not convert before August 30, then it seems that more than 3 bondholders would join the NY lawsuit to transform their convertible bonds claim into a "judgement lien." STP is contesting the action in NY, although it seems that a judge will issue a ruling in this case on or before August 30. My understanding of NY law is that after the creation of a judgement lien in NY, STP would have 90 days to 1) appeal, 2) settle, or 3) face involuntary bankruptcy under Caymen Islands law.<br /><br />Did you see the SEC filing STP made today? Apparently, the European subsidiaries contribute an additional $1 billion USD of inter-company debt to STP's debt pile. Also, Japan and Singapore have been reorganized from BVI holding co. to Wuxi Suntech.<br /><br />Does STP really think it can either spin off Wuxi Suntech and/or EU assets while it also is negotiating a swap in less than 5 weeks?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-56779877783162381542013-07-18T07:52:12.362-07:002013-07-18T07:52:12.362-07:00Yeah RJ, this thing has really dragged out..Its an...Yeah RJ, this thing has really dragged out..Its annoying paying borrow fees but we should get some news in the next 30-40 days.<br /><br />Does anyone know how long it would take for bondholders to receive shares after a debt/equity deal is announced? Johnhttps://www.blogger.com/profile/07225674492534913210noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-29513027888581999362013-07-16T09:49:37.758-07:002013-07-16T09:49:37.758-07:00Has anyone heard anything from the Ad Hoc group or...Has anyone heard anything from the Ad Hoc group or updates from the lawyers?<br /><br />Looking at the options trading, seems like Sept is the earliest time we hear something.. <br /><br />In the meantime, continue to pay .15/month to be short and have the buy in risk.. <br /><br />This has been funRJnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-77844853326077787562013-07-08T17:02:17.554-07:002013-07-08T17:02:17.554-07:00This will never end...
With borrow rates at -100...This will never end... <br /><br />With borrow rates at -100%, it has been an expensive short to say the least.. <br />Only people making money here are the stock loan desks...RJnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-35295119909541447702013-06-30T18:08:06.624-07:002013-06-30T18:08:06.624-07:00Chinese news story about new forbearance...
http:...Chinese news story about new forbearance...<br /><br />http://www.nbd.com.cn/articles/2013-07-01/754099.htmlJohnhttps://www.blogger.com/profile/07225674492534913210noreply@blogger.com