Learned a few lessons from a fleeting interest in BBEP about MLP with high debt....and creditors goals of wiping out unit holders.
Seems low cost credit is drying up.
The US shale producers are now nervously standing like a line of towering dominoes that are starting to fall...BK seems to be their solution even if balance sheets not so bad, because BK may allow cancellation of debt without tax liabilities...
CPLP plans to pay debt well worth the cut in distribution IMHO...we don't want to be the next domino.
...I'll guess default and a big fat #$%$ from the CEO to the self-righteous Dig.
Zoo seems to have his ducks in a line... he is ready for all outcomes tomorrow, in a month or a year.
BTW, the person who keeps using the phrase "aye Dopes?" is really a piece of work on this board.
I really doubt she is a paid basher...
More likely a bored criminal, an ISIS wife, or a meth-driven prostitute who is forced to make these constant posts by her pimp...get a life, aye Dope?
In any case, she is effective, as I am really sick of her posts...
Agree...more complex than I can fathom.
Seems unlikely that they will pay interest on Monday, but they may default without BK, or have some other plan...
My interest was in the odds of current unit holders staying whole for coming years...odds seem low.
If current unit holders stay whole, will consider buys on the rise...right now seems quite risky.
from thetaxadviser (goog it, seems like a pretty good site)
Bankruptcy exclusion: Under Sec. 108(a)(1)(A), COD income is excluded from gross income where the discharge of indebtedness is granted in a Title 11 case, which includes Chapter 11 reorganizations, Chapter 7 liquidations, and Chapter 13 bankruptcy proceedings under Title 11 of the U.S. Code. This exclusion applies only if the discharge of indebtedness is granted by a court order or in a court-approved plan (Sec. 108(d)(2)).
When debt is discharged in bankruptcy, the bankruptcy exclusion rules govern, even if one of the other exceptions would have applied (Sec. 108(a)(2)(A)); this treatment is important since the required reduction of tax attributes differs depending on which COD income exclusion applies.
FWIW...this scared me away yesterday...even if no Fidelity note, it is hard to get around the advantages of dodging CODI when BBEP has so much debt...
If you did not see this post earlier, then Zoo could be alias for someone that you had on ignore...
In that case, the "Fidelity" news is indeed suspect...
In any case, it scared me away until some kind of verifiable news...
Best of luck to all, I hope it works out for those little guys who are spending their own money to better themselves.
yep, it never went away....
Made sense to this casual observer...ain't no way the lenders will be nice to current owners unless they are forced to do so...
immediate issue is default, they should have paid already if they had cash and plan to save company from restructure...hints of other plans...time will tell as it always does...
get a grip dig.
Thanks for that clarification.
In that case, the Magnum Hunter playbook seems like a win-win for all involved except the current unit holders. The greed-play for current creditors/bondholders is to have company value soon become assessed as lower due to oil crash and uncertain future...as a result, they can employ voluntary CH11 debt-for-equity to assume total ownership...and tell the current unit holders to take a hike.
The Magnum investors squawked at this approach, but it didn't get them anywhere that I can tell...Magnum now stronger with new owners and dumped CEO.
That makes some sense...voluntary debt for equity CH11 like magnum. Might explain ongoing interest in bonds.
I may be mistaken, but didn't ALL existing equity (common and preferred) get wiped out and replaced by bondholders as new equity?
Are you suggesting they should dilute existing units with additional debt-to-equity units to solve codi instead of wiping out existing unit holders?
Sorry, but I gotta jump in here with some suggestions...
Take your lumps and move on.
Don't become a frustrated victim.
Deal with the world as it is.
Hug your wife and kids, and explain what YOU did with the $$$, not some imaginary villains that the mass media is programming you to blame.
Thanks for your reply. I couldn't find that info. Is that a general feature of bond repayment schedules, or do they vary from company to company?
According to your reply, they may have enough cash to pay...
If they have enough to pay, then why not simply pay to preserve the SP?
Why all the suspense?
Newbie here interested in possibility of no default...noBK
On May 15th,wont they have both the April 15th + the May 15th payments due?
Do they have that much cash?
and this tickle..." reduction rate may be lower than that level"...lower than 28%...maybe?
Since February, Hyundai Merchant has been in talks with ship owners to cut the rates and the negotiations are reportedly in the final stage.
Industry sources said Hyundai Merchant is working to lower the rates by some 28 percent on average, but the reduction rate may be lower than that level.
Related news...now 28-30% cut in rates...
Creditors led by the state-run Korea Development Bank are soon to come up with a detailed plan to inject new capital for Hyundai Merchant Marine, as the ailing shipping firm is near completing negotiations with shipowners over ship leasing fees.
Creditors next week will start discussing a debt-to-equity swap plan, KDB spokesman Cho Seong-wook said Wednesday. A debt-to-equity swap refers to swapping loans into stocks of the company to alleviate liquidity crunch.
Currently, Hyundai Merchant’s secured debts to financial institutions amount to 1.1 trillion won, according to the nation’s No. 2 shipping firm. About 50 to 60 percent of the amount may be injected as a debt-to-equity swap scheme, industry sources said.
The creditors had earlier said that they would roll over debts and inject fresh loans for Hyundai Merchant, on the condition that the company lowers ship leasing rates
Hyundai Merchant refused to reveal how much charter rates the company should negotiate to cut, saying it would affect bargaining power. Local media speculated a rate cut of about 28-30 percent.
The creditors and the government had earlier urged the company to complete negotiations with shipowners by May 20.
Tea leaves say that HMM is not going under...good for CPLP!
Lotte agrees to buy controlling stake in Hyundai Logistics
2016.05.11 17:23:15 | 2016.05.11 17:32:23
Lotte Group, one of the South Korea’s largest conglomerates, will acquire a controlling stake in Hyundai Logistics Co. for 410 billion won ($350 million) in hopes to strengthen its retail and logistics business.
The majority stake of 88.8 percent in Hyundai Logistics is owned by IGIS I Corp. a special purpose company (SPC) set up by Orix Private Equity with a 35 percent stake, Lotte Group with a 35 percent, and Hyundai Merchant Marine with a 30 percent.
The transaction is expected to ease the cash crunch of struggling Hyundai Merchant Marine. The shipping company took its current stake in Hyundai Logistics for 100 billion won in September 2014.
Fair enough...lets see how they do going forward...CPLP looks oversold...maybe you will be praising the young Turks (Greeks) in a year or two.
thanks for your reply.
Bad communication, lack of stock repurchases, and issuance of the shelf filing at a terrible timing...
...but we remain afloat with 10% divi-dist for current buyers...go figure..
Serious question: Which management team in shipping has done a better job in this environment, and which team will do better moving forward?
add this from Hellenic news...
Meanwhile, with regard to Hyundai Merchant Marine’s progress in its chartering fee negotiations, Financial Services Commission Chairman Yim Jong-yong said that although mid-May is the rough deadline for the negotiations, the actual result will come out at around end of June after adjusting details from the talks. Yim said that as of now, the possibility of Hyundai Merchant Marine getting what it wants from the negotiations is half and half.
SEOUL, May 4 (Yonhap) -- Creditors of ailing Hyundai Merchant Marine Co. and the government have urged the country's No. 2 shipper to wrap up its negotiations with the owners of chartered ships to cut leasing rates by May 20, threatening to put it under court receivership if it fails to produce tangible outcomes, industry sources said Wednesday.
Last month, the creditors gave the nod to the financially troubled Hyundai Merchant's self-rescue plans including asset sales on the condition that it should complete renegotiations with the owners of chartered ships to lower their charter rates until the middle of May to stay afloat and implement far stronger self-rehabilitation measures.
"We see May 20 as a deadline for the negotiations," said an official at the Financial Services Commission (FSC), the country's financial regulator. "If Hyundai Merchant fails to adjust charter rates, we are left with just one option: court receivership."
The official said the deadline could be delayed a bit, but made it clear that Hyundai Merchant should come up with details.
Since February, Hyundai Merchant has been in talks with ship owners to cut the rates by up to 35 percent, and the negotiations are reportedly in the final stage.
Ioannis E. Lazaridis, 48
Gerasimos Kalogiratos, 38
Director, Chief Executive & Financial Officer
The reason fro the put?
Also in today's news... KDB better get the HMM $$$hit together,or this could swallow up MUCH more than a few ship lease contracts....Hyundai Heavy Industries Co., Ltd. (HHI) is the world's largest shipbuilding company...with Daewoo Shipbuilding & Marine Engineering Co. number two...
"Hyundai Heavy Industries is expected to face increasing debt repayment burden stemming from its bond issues using its shares in unprofitable shipping company Hyundai Merchant Marine as collateral. To secure liquidity to revive its sluggish operations, the Korea-listed shipbuilding giant issued bonds worth $220 million exchangeable to HMM equities last year."