TRID' 60% shares owned by NXPI (nasdaq, 16.9 dollars)
NXPI owns 60% of TRID (.09)
TRID boss: NXP Semiconductors N.V. (NXP) is a global semiconductor company and a supplier. The Company provides High-Performance Mixed-Signal and Standard Products solutions. NXP’s product solutions are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. It is engaged with original equipment manufacturers (OEMs) worldwide and over 58% of its sales are derived from Asia Pacific (excluding Japan). The Company operates in four segments: High- Performance Mixed-Signal, Standard Products, Manufacturing Operations and Corporate and Other. On February 23, 2010, NXP acquired the 50% stake owned by Sony Corporation (Sony) in Moversa GmbH (Moversa), and merged Moversa with its subsidiary NXP Semiconductors Austria GmbH. On February 8, 2010, Trident Microsystems, Inc. (Trident) completed its acquisition of its television systems and set-top box business lines. As a result of the transaction, NXP owns 60% of Trident.
No, the CEO did not come to re-organize Trident. He came to turn Trident around. At the time he was hired last June, it looked like Trident still had a decent shot at turning around. But things did not work out as hoped, and Trident's window of opportunity for a turnaround closed.
I've been reading Chapter 5 of Joel Greenblatt's book "You Can be a Stock Market Genius". This chapter deals with bankruptcies. Mr. Greenblatt's advice is to avoid buying shares in a company that has recently filed for bankruptcy. In part, this is because common-stock shareholders are at the bottom of the totem pole in bankruptcy proceedings, and in part it's because there are a lot of complicated details to untangle, making it difficult to know how much the common shares are really worth, if they're worth anything at all. Just look at the confusion on this message board regarding Trident, Trident Far East, Trident Hong Kong, how much debt Trident Far East has, the nature of the debt, etc.
Once the reorganization is complete, the new company will likely issue new shares, for which a registration statement will be available. This statement will disclose all relevant information about the finances of the reorganized company. At that juncture, one can make an informed judgement as to whether the new shares are undervalued.