GNK will have to sell its share of BALT when they wipe out the common shareholders. Centerbridge may buy more of BALT and BALT become a total independent (from GNK) comp. My questions, will the current institutional shareholders just sit around waiting for the deal between George and the debt holders?
Agree with you. We small guys can not do anything about that. Will the institutional holders of GNK going to do anything thing?
If GNK is trying to BK their company by reaching a deal with Oaktree and divide the company between them, I know that we small guys will be wiped out. What about the institutional holders? Are they going to sit still and not investigate to see if there is anything done not right?
Does anybody know what happens to the institutional holder's shares when a company wipes out the share holders equity or claim BK by reaching an agreement with the debt holders on a new company without considering the existing share holders at all?
What does Oaktree really want by purchasing the debt of EGLE and GNK? Do they want to convert the debt to common shares so that they can benefit in the next few years with the improving market? or do they want to restructure the company to wipe out the common share holders and divide the company between them and the company's management team?
Thanks for the post! We do have high quality post or real news once a while in this board.
Your post of what Oaktree did to Excel was also very informative.
The People who benefited the most from this new outcome is the lender. Gabriel P. did not get exactly he wanted at first place. Not sure how much money is 7-10% ownership of the new company with a $20-25M investment. What about all the other officials of EXM, like CFO or president, did they get anything? Is this news going to discourage or encourage Perter G to bankrupt GNK? From the effect of this news to the stock performance of GNK and EGLE recently. It is hard to judge. Does anybody have information about any transaction of the GNK's debt in the last week or so? Is their debt getting cheaper or more expensive?
The way the market behaves today seems indicate some bad news is coming out of GNK even though the general market looks good.
My concern is with the GNK management team. These people may considering a re-structuring of the debt which only benefit the debt holders and the management team but wipe out the common share holders. That will be very unethical but these people has done it before.
If Peter, John, Robert will get the shares of the new company which will have no debt in a raising market, is there any incentive that they don't want to push GNK to BK? From the lender point of view, just like EXM, they can waive the debt ($1.5B) and own 80% of the new co. Will that be good for them? Anyway, between the lenders and the management, they can divide the same company between them and take all the money from the current stock holders. I think the recent sale by insiders indicate this is coming.
It may be the news has leaked out to prefered investors. GNK's management is not performing in terms of investor's interest. May be they don't care about common share holders anymore.
The debt restructure could benefit the owners and the banks since they will wipe out the shareholders. This may be in the mined of the GNK owner since they have done that before. But does anybody know what will happen to the managers or CFO's share? Are they going to get the shares of the new company free?
They said that is tied to the restructure of the debt, Interesting! But I think that the market is not going to like what their responses to the debt questions. They were pushed hard this morning on the debt issue but their lips were very tight.
We will have to see how they going to answer the questions tomorrow. If the answer is not very positive, GNK PPS could be in trouble.
I was hoping a better result than what they announced. The average BDI during the Q3/13 is about 1200-1300. Comparing with a average BDI in Q3/12 of about 700. The revenue should be 30-40% higher instead of 9% higher as they reported assuming they are 100% in spot market.