I haven't been following the news on this turd for a few months. Have there been any recent developments? Is this movement ahead of a reorganization plan proposal or something?
These targets were issued prior to BKY filing.
Bonds are trading at 30 cents on the dollar, the stock is done for. Stick a fork in it.
It's not "human" nature, it's the nature of the filth that passes for "leaders" in the business world today.
Not a shred of personal responsibility was shown. Not only did they screw up big on their jobs and got a bonus for it, now it seems their only concern is that, going forward, they won't be able to make as much $$$$ looting the company.
Settlement between Apple and debtors in possession of GTATQ (i.e. other creditors/stakeholders/mgmt)
Next thing GTAT needs to do is file a restructuring plan, that supposedly makes it solvent again and back in business, one that all stakeholders can agree on.
Usually such a restructuring plan cancels the equity shares that existed prior to filing (what's trading as GTATQ right now). It's not a 100% sure thing though.
Anyone who was long this stock already lost pretty much everything they invested into it. To the people who have taken a ~96-97% loss holding it thus far, it makes no real difference if they lose the other 3% or not. I sold it the day it BK'ed at $1.2, but it'd make little difference if I hadn't, most of the damage has already been done.
That must be why RBCN is making new 5 year lows, Apple's going to bury them next.
“The public has access to all substantive information,” Bruce Meyer, an attorney for Apple, told the judge.
What an insult to everybody's intelligence that lawyer's statement is...
The money obliterating black hole in Mesa has dissipated but a lot of damage has been done. To be solvent again, GTAT will need a lot of new financing. A debt-to-equity swap may occur. In such case, it is a #$%$ shoot what will happen to pre BK equity, with considerable chance that it gets wiped out entirely.
All bonds are due for full repayment currently. It's called a cross default. How are you expecting GTAT to repay?
If I were a bondholder and thought GT is a worthwhile company to get back into business, I'd ask to swap the debt for new equity and leave old shareholders with nothing, and it's either that or pay back the notes in full. I don't want to make 3%/yr on something as risky as a bankrupt or near-bankrupt company simply because the shareholders are nice and I feel sorry for them. Think logically about this.
TG was asked a direct question in the last ER CC by an analyst. Will you need additional financing if Apple delays payment. He said they can make it through the rest of the year without ANY debt or equity financing even if Apple doesn't pay them. Then files BKY 45 days later. Not fraud? are you serious?
They will let it run, but the cross default terms allow them to negotiate pretty much whatever they want. So they can decide to swap some of their debt for like 90% or 95% of the equity in the post-BKY entity. That way they get all the upside and the books are greatly improved. It's a win for them, a win for the company, and the old shareholders are screwed over. They have no leverage whatsoever so they will be left with scraps at best.
They may waive the debt in exchange for something. Like some % of the new entity's equity _in addition_ to the coupon and face value owed to them at maturity. Considering they can hold the threat of Ch7 liquidation over the company due to cross-default, you can rest assured that they will get pretty much whatever they ask for. pre-BKY shareholders have zero leverage and will get a pittance at best, or more likely nothing whatsoever.
If those numbers are correct then the BoD and senior mgmt were corrupt beyond all measure. No sane person representing a corporation would take such stupendous liabilities. No matter how "confident" TG was that his company could pull it off.
How much were they all paid on the side by some "affiliate of Apple" or another for signing the company away is what I really want to know.
it was easier to throw us all to the dogs though. Except the guys who just happened to buy those cool 50k put contracts, gee I wonder if they had inside info on what the company might announce days later...
gotta wonder how much of the short interest belonged to TG's friends and family.