Want some good news the Asbestos dollars are now accounted for charges taken.Will the judge approve these dollar libilities for Asbestos yes if they use medical criteria.The company for the 12 months is much stronger at the end of 04 than 03..
Does anyone know how the BK judge will view the pension liabilities?
I mean in case of steel, airlines BK, the pension liabilities were dumped on the PBGC (a govt. agency, Pension benefit guarantee Corp.) would the same thing happen here? if so, how owuld the current shareholders (SOLUQ) be treated? because that will definitely free up value to the shareholders, and they would see some money during the reorg.
Another thing to consider is that Monsanto has agreed to take care of the other liabilities such as EPA, leagl, etc... That is a plus..
If you compare with GRA, as I have done it in my previous post, what do you think?
Someone who has experience in dealing with the pension liabilities in BK will be a great resource.
I came across this BK chemical compony, spun off from Monsanto. I was trying to make some sense out of its B/S and income statement, and was trying to compare it with WR Grace (GRA)
Chemical maker Solutia, which was spun off from Monsanto in 1997, filed for bankruptcy protection a year ago, overwhelmed by huge liabilities related to environmental lawsuits and employee benefits it said were forced upon it by Monsanto.
CFO said it was possible that Monsanto might receive some equity in Solutia in exchange for taking on some of the costs, but that will be dealt with through the bankruptcy process.
I tried to compare GRA balance sheet , and other data with solutia. GRA has a far stronger B/S compared to SOLUQ, and also when I purchased GRA at $3, it was also announced that GRA was going to get compensated for about $1Bil. from Air products towards the settlement of liabilities. In this case Monanto has opened the purse with $285, and maybe some additional future compensation.
I also looked at the bonds for solutia, and was surprised to see that they are trading at 88 to 102 cents on the dollar. Looks like bond guys are comfortable holding these bonds even during the BK.
Question is what does your analysis point towards the fate of the common stock? Do you think it can be another GRA? ( I was so fortunate to buy GRA last Jan., and was wondering if this one smells like another similar opportunity)
As always all the BK company mgmt., has a standard clause for the shareholders, that they will be wiped out, but that is the same clause they had in GRA too?