"The Nortel patents were sold through a chapter 11 bankruptcy sale to a consortium that included Apple, Microsoft and RIM, who outbid Google, the stalking horse bidder at $900 Million."
"WILMINGTON, Del.—Judges in the U.S. and Canada Monday gave the nod to a $4.5 billion patent sale that marks a shift in the balance of power in the technology wars over mobile applications and a major improvement in the fortunes of creditors of Nortel Networks Corp.
The sale of Nortel's portfolio of technology patents means the liquidating telecommunications maker will have more than $7.5 billion in cash to cover its bills, a few billion more than anyone expected just weeks ago. A four-day auction in New York closed with a price five times the stalking-horse bid, sending the prices on Nortel's bonds above 100 cents on the dollar."
Once BK is declared; the stock will go to $0. If SVNT ever comes out of Chapter 11 and issues stock; any remnants of the old shares (usually OTC shares) will go to $0 and new shares will be listed on the exchange under a different stock symbol and likely a different name. Bond holders will get any proceeds (likely pennies to the dollar) for any asset sales. End of discussion.
Why did SVNT not do a R/S? They had enough outstanding to raise enough money to keep the lights on and line their pockets. Dilute then R/S again. That's typically the mo of struggling biotech's. My guess is that this was the only way to sell the company. If the bid goes up based on abstracts that are set to be released, then maybe there's someting left for us. Either way, 90% and 100% loss is all the same to me. I had aquired almost 70k shares at just over 40k with an avg pps of around .60. I'm not concerned about my 4k left. What really bothers me is the positive statements by the former CEO. Then the company releases press abt abstracts a week before the bk announcment. I was waiting for q3 earnings in a day or so to see if price increases and operational adjustments would have made a difference. I really didn't expect bk last night when I got off a plane. Do you guys think the 55 mil is the selling price and that's abt it? or do you think that's a starting point? Do you put much into the abstracts now? This board has been taken over by folks wanting to #$%$ up cheap shares with cries of sell sell sell. I"m not sure why. Thoughts?
two months ago they said, that they have 12 months of cash while obviously working with Lazard since June. They never attempted to raise the price since May and never really cut the costs to appropriate levels. Filing yesterday makes no sense, unless they are using section 363 benefits as a perk for a buyer waiting in the wings, but that's a looooong shot. The whole thing smells bad and I sure hope Palo Alto has a legal team ready to go and fight, at least make it difficult and maybe bondholders will throw shareholders a bone just to go away.
The auction will start at $55M. Highest bid will probably be $100 to $150M, well below the liabilities. The shareholders will be left with nothing. The abstracts mean little at this stage. The management has put a smokescreen around the company since the termination of the CEO and the establishment of the "co-president" office. The co-presidents a commenced the preparation for the bankruptcy since day 1 of their tenure. The share price was kept artificially around 60 cents for a long period allowing the large shareholders to slowly sell their positions to gullible retail investors. For example, Palo Alto Investors reduced their positions significantly between March and June. Obviously, because of the low trading volumes in recent months, the likes of Palo Alto have still been trapped with large long positions. They are probably getting out today and tommorow because the trading will be suspended on the 17th when the delisting from the NASDAC takes effect.
The shareholders have been misled and hoodwinked since the FDA approval of K and the failure to find a buyer for the company.
What is the true market VALUE of K??
There is a Long list of potential buyer.
From: Declaration of John P. Hamill in Support of Chapter 11 Petitions and First Day Pleadings
"31. In connection with the sale process, in May 2013, Lazard developed a list
of potentially interested parties and solicited such parties' interest in a sale transaction.
Beginning in June 2013, Lazard contacted 57 potential buyers, including well-capitalized
pharmaceutical companies, privately-held specialty pharmaceutical companies and select
financial buyers. Approximately 17 of these parties entered into non-disclosure agreements
("NDAs") with the Company to further explore the potential purchase of the Company's
business. Among other things, a virtual data room was established containing extensive
information about the Company including documents describing the Company's business and
financial results in considerable detail. The Debtors established July 26, 2013 as the deadline for
submitting non-binding preliminary proposals. Five parties submitted non-binding preliminary
Done extensive due diligence.
"32. After reviewing the five preliminary proposals the Debtors invited all five parties that had submitted proposals to continue to the next round of the sales process. On August 27, 2013 Lazard distributed bid instructions to these parties which described the requirements for each bid (including a September 16, 2013 deadline for definitive proposals) and provided a copy of the Company's proposed form of acquisition agreement. The Debtors engaged extensively with the potential bidders concerning a possible transaction. Among other things, the Debtors arranged in-person meetings between the potential bidders and the Debtors' senior management and advisors, and afforded potential bidders the opportunity for extensive due diligence via the electronic data room. In addition, the Debtors provided the potential bidders with an opportunity to tour the facilities of BTG, the Israeli manufacturer of KRYSTEXXA. Some of the potential bidders also visited Sigma Tau, who provides the Debtors with "fill and finish" services for KRYSTEXXA."
Because they had researched the market and the insurance reimbursement potential and figured out that a much higher price for K would result in even fewer patients and stagnant low sales. Go and ask your beloved Meeker....
sure - that still wasn't enough to give Nortel shareholders a single cent
given Savient's outstanding debt and additional liabilities the final purchase price likely must be north of $250 mln for shareholders to get at least a few cents on their shares.
only if Savient is sold for at least 300mln$ there would be something left for commons, that's not the case imho because Kristexxa sales disappointed since the beginning...why management did'n sell the company for 10$ 2-3 years ago when there was much more cash and less debt?