OK, guys. The most uhique parts of the pre-pack BK
are (1) The 23.5M add'l commons issued to the current major common holders prior to April 1, eventhough they already had 87% of commons (7.7M on March 11).
(2) The entire GMXR asets were sold to the same major common holders, i.e. GSO/Chamtham, for an unknown price $X, after April 1.
It should be noted the owners of GMXR assets were the common holders, i.e. GSO/Chamtham, insiders and retailers. The secured creditors have the right to get their pieces after Chpt-7 auctions. The non-secured creditors will get the remaining. But this unique pre-pack Chpt-11 case will allow the secured creditors (the same major common owners) to buy the entire assets from GMXR owners for $X, if the court approves.
That is why the non-secured creditors accuse the case of frauds from A to Z, many are just speculation, try to stop court approval of this pre-pack.
Now back to items (1) & (2), What are the reasons for them? Why did Jefferies, GMXR insiders (board) and GSO/Chamtham propose it? If you can find the answers for that, then you konw what will become of the court approval.
i have come to only 2 answers for your two questions joe
why 23.5M add'l commons issued to the current major common holders prior to April 1, event though they already had 87% of commons (7.7M on March 11)?
Allow for a pre arrange,all agreed upon ratio, of common equity to senoir debt swapout. (GSO /Chatham)
the offer to be made for bk approval is that 23M common shares to eliminate $390M senior debt.
this is best for all classes of stakeholder, will allow Gmxr to re-emerge from chapter 11.
(2) Why were the entire GMXR asets were sold to the same major common holders, i.e. GSO/Chamtham, for an unknown price $X, after April 1?
Restructured leadership blend of company that only common holders will own all the assets
Restore full confidence in management's turnaround success.
Fianancial leadership of Gso/blackstone will have access to any required capex funding.
best for all classes of stakeholder, will allow Gmxr to re-emerge from chapter 11.
this allows Gmxr fully restructured, best for all stakeholders (bk approval)
if the court does not approve the senior are in place to regain their investment.
inside knowledge to take specfic parts of the company & assets private as well
thru the public auction if needed.
1,a) Still not clear when they acquired additional shares.... Which SEC document and date?
1,b) Where are the agreed upon ratios of common to senior debt swap-out. Which SEC document and date?
1,c) Again... still not clear why 87% is not sufficient to have controlling vote, and why additional shares were needed, except to dilute the common share value.
2) Question was asked as if the entire assets were already sold. Is that so?
A) In Docket #211 the number redacted "2112 and 2013 asset value was 565 million" and is missing (blacked out) in Docket #214. (page 12, item #27, first sentence).
B) In Docket #238 The unsecured group wants to push the court date to May1st, to decide DIP and Royalty payments.
C) In Docket 233 they say Jefferies's fee of 2M is a rip off, Jefferies wins either way, no incentive to do any additional work, and have no interest is preserving any of the estate for the unsecured.
D) There are 2 camps, the secured and unsecured..... I'm not sure which win is in the best interest of the Common and Preferred
which would be what Joe, these guys have been scheming all along and we the share holders get hurt. How is that legal, that is not being accountable to the share holders its only self preservation for these thieves. They manipulated the capex budget and go broke, totally ran the company into the ground on deceit and the jackals are shredding the meat for them selves. Its no wonder no one trusts the American stocks and #$%$ ant management here at GMXR . I still like to know if his son was cooking the books and met his demise.This whole thing is a dog and pony show and was a fraud ........................