Court hearing just concluded after a pretty long wait while both parties negotiated.
The equity committee convinced the debtors that they have to be open to any potential inquiries on the company that would generate more value for all holders during the exclusivity period. If the equity committee believes they aren't honoring that, they have the right to expedite a court hearing to end the Debtors exclusivity period.
In other words, the Equity Committee made a petition to the court stating that:
a) the Equity Committee had an independent appraisal done that found the fair market value of ZINCQ assets to be far in excess of what debtor in possession (Greywolf) claimed. ($4.00-$6.50 per share, vs. $.50 current).
b) the Equity Committee had received serious inquiries from outside parties interested in Horsehead assets.
c) that these outside parties have placed tentative valuations on the assets far in excess of what Greywolf claimed they were worth
The court today has ruled that Greywolf must allow bidding on these assets, and if the bidding results in an outcome that would be most favorable for all parties (including ZINCQ shareholders), then they must proceed with sales to those interest parties.
In other words, today was a victory for shareholders. The important next step is the contingent successful sale of assets in line with prices set forth by the independent appraiser. If that happens, ZINCQ holders could be looking at potentially $4+ per share. Good luck.
just letting shorty know.
The news coming out keeps getting better and tomorrow the real pain begins tomorrow.
industry. First we will stabilize the company, then we will worry about growth."
Sounds fantastic to me.
someone big is accumulating. Look for a big gap up tomorrow morning.
If the smartest people in pharma were willing to acquire the company at north of $60, what does that tell you about the true worth of the company?
There is a court date schedule for tomorrow, but the filings are available now. Independent appraisal group states the company should be worth in excess of $4 per share after all liabilities paid, and states that they have "several" parties who are interested in Horsehead assets and are requesting that the court allow the bidding process to start for those assets.
If you haven't read the court documents, I highly suggest you take a look at them.
They make a very compelling case for this valuation after subtracting all debts. It is also appears that the court is now recognizing that management and Greywolf colluded to force this technical default. There is a meeting on July 7th that should prove to be very interesting.
Obviously with investing, there are zero certainties.....but here is the way I am looking at things:
Without Guy Spier and Phil Town, there would be no equity committee and Greywolf would've walked away with the entire company for pennies on the dollar. Spier and Town have been effective at persuading the court.
Both Spier and Town own the same shares that we own (ZINCQ, formerly ZINC), so they are completely aligned with us. The only way they financially benefit from this situation is if something good happens to these shares (including being offered warrants on new company in exchange for these shares, which is an unlikely but possible scenario).
Both Spier and Town have spent considerable money on lawyers, appraisal companies, conferences etc in making the case to the court that they had buyers looking to pay much more for assets than Greywolf told the court they were worth. I don't think they would waste their time doing this if they weren't highly confident it was in their financial best interests to do so. Keep in mind their cost basis is far higher than the $.56 per share, so they are not looking for $.80-$.90 per share. They are looking for a big payout.
There is no need to provide full year guidance right now - there is a new CEO and a new board that are currently in place. They will issue full year guidance when the time is appropriate.
I think you are completely wrong. This stock is not currently being priced for approval, since most know what happened during the last time they went in front of the FDA. Approval will lead to significant money flowing into this stock.
Peter - there is a lot of digging required to get to the answers. In a 30 second summary, Horsehead made several acquisitions that lead to a cash burn, but the real problem was that management was grossly incompetent and never able to get their Moorseboro production facility up and running in a timely fashion. There were design flaws, machinery issues, you name it. As a result, the Moorseboro facility operated at about 30% of what it should have been, all while Zinc prices were sitting at 20 year lows. Not a good combination for the bottom line.
Management consistently made promises that the facility was just about to get up and running at full speed, and then all of a sudden they were forced into BK by these Greywolf savages over a technical default of something like $2M dollars. However, the asset base including production facilities are very real and are worth a great deal more than what the Greywolf savages have tried to trick the bankruptcy court into believing. W
Hope that answers your questions.
when you consider most of them have no problems taking the kickbacks, fringe benefits, and everything else from the private sector.
Corrupt Democrat Sen. Claire McCaskill has a lot of explaining to do, but we doubt that she will be able to explain away the fact that her husband earned between $400,000 and $2.6 million in income from businesses that received almost $40 million in federal payments from 2007 through 2011.
Sen. Claire McCaskill’s TV ads try and portray her as a caring and honest senator, but nothing could be farther from the truth.
In reality, Sen. Claire McCaskill is just another corrupt Democrat trying to line the pockets of themselves and their friends on the backs of the US Taxpayer.
Ivana....3 hours ago you told us you were "pounding the bid" with your short sales.....3 hours later you are simply getting pounded.
Exactly right: Cramer told the world that Bear Stearns was a buy at $60 in 2008.
thought it was good enough to leave a multimillion dollar job at PRGO to come to Valeant. Should tell you all you need to know.
With Pearson behind the scenes, Papa will have someone to lean on to help sort out the mess. And lets be honest, say what you will about Mikey Pearson, but he does know how to focus really well on the bottom dollar.
From the mouths of men who had no problem investing billions into Goldman Sachs - gimme a break.