Seems tomorrow ought to be the time - in the morning when they ought to have the CC.
Maybe we should not be amazed - but - when Holdings filed for ch11, the news stories were all over about Holdings and being the parent of SXE.
Now, that the news are out about Holdings emerging from Ch 11 - total silence. Even looking at the headlines listing on Yahoo - the 5th story down is the wall street journal article about Holdings filing the pre-packaged ch11. So, where is the WSJ on Holdings emerging bankruptcy - nowhere to be heard or seen.
As I recall, tomorrow, 13-April-2016, is supposed to be the effective date for Holdings exiting ch11.
When will they make the receivables payment to SXE and when will SXE publish its 10K - and most importantly when will there be a CC for Q4-2015 and EOY 2015.
Looks like gas leaked out or rather was let out accidentally from a tank or pipe. The gas was coming from a high pressure tank or pipe. The gas accumulated where the guys were, someone struck a flame or cigarette or whatever, and you get an explosion.
The most common reason is because someone accidentally opened a vent line. We always have flame arrestors to keep any flame from propogating into the pipe or tank.
However, if a line is left open - NG gets out and if there is a flame nearby then that is how accidents occur.
Truly sad about the two guys who died, though.
The big question is: did someone erroneously open a vent valve or did a pipe or tank blow up. Judging from the short writeup - it looks like an inadvertent vent valve operation.
OK, this is the second time I tried to reply. Guys, check your search engine - look for Refugio County Press, the local paper. They record this as a gas leak explosion, that occurred at 12L15 PM CST today, April 12, 2016. The paper says, two people died.
Which claim class number are the preferred units that Energy Capital and GE Energy Financial Services buy?
What percent recovery do they get? Will they get cash or stock in the Newco of Holdings/
One more key motion, that being docket 175.
Application to Employ Kirkland & Ellis LLP and Kirkland & Ellis International LLP as Attorneys for the Debtors and Debtors in Possession. Objections/Request for Hearing Due in 7 days. Filed by Debtor Southcross Holdings LP Hearing scheduled for 5/6/2016 at 10:00 AM at Houston, Courtroom 404 (MI). (Attachments: # (1) Proposed Order # (2) Exhibit B - Husnick Declaration # (3) Exhibit C - Jameson Declaration) (Clement, Zack)
As I posted before, this looks like a catch up process.
Docket 176 has the following:
Application to Employ Alvarez & Marsal North America, LLC as Restructuring Advisor for the Debtors. Objections/Request for Hearing Due in 7 days. Filed by Debtor Southcross Holdings LP Hearing scheduled for 5/6/2016 at 10:00 AM at Houston, Courtroom 404 (MI). (Attachments: # (1) Proposed Order # (2) Exhibit B - Declaration of Edgar W. Mosley) (Clement, Zack)
But docket 187 has this this:
Application to Employ Houlihan Lokey Capital, Inc. as Financial Advisor and Investment Banker for the Debtors. Objections/Request for Hearing Due in 7 days. Filed by Debtor Southcross Holdings LP Hearing scheduled for 5/6/2016 at 10:00 AM at Houston, Courtroom 404 (MI). (Attachments: # (1) Proposed Order # (2) Exhibit B - Hardie Declaration) (Clement, Zack)
Perhaps this is a method to get all those consultants, lawyers, etc paid - now that most / much of their work is done.
Seems to me that someone had the phone number with conference code for being able to listen in on the confirmation number.
Whoever has that info, could you please post that.
Totally agree - the sell-off was primarily bankruptcy fear driven.
Having said that, once the judge confirms the reorg plan for Holdings today, then Holdings will be able to pay the receivables to SXE etc. and we should move up.
Here is the tabulation by Epiq.
Bottom line; Class 3 and 9 all voted in favor of the reorg plan; total about $ 47.7 million.
However, Class 4 claims for the Term Loan Facility, 96.5% of $ claims voted in favor of the reorg plan for a total of $ 514 million. However, 3.5% or $ 18.7 million said NO.
SOUTHCROSS HOLDINGS LP, et al.,
ACCEPT REJECT AMOUNT NUMBER AMOUNT NUMBER
CLASS 3 REVOLVING FACILITY CLAIMS
CLASS 4 1 TERM LOAN FACILITY CLAIMS
CLASS 9 HOLDINGS CLASS B INTERESTS
You are making my point. The valuations then ( Jan 2015 ) were BS, yes - and they are BS now. Holdings is in BK now, that means the whole process needs to show low valuations. I have never seen a ch1 proceeding where the debtor was portrayed to be in excellent shape with super high EBITDA valuations. This is simply what lawyers do in ch11 cased. Once Holdinngs has emerged from Ch 11, - you will see Holdings and SXE delivering most excellent numbers. The K-Mart bankruptcy is a classic example of this. Back then, the K-Mart shareholders got nothing out of the reorg. All of the debt was converted into new K-Mart shares - which subsequently went up 4 fold within the first year.
You left out one very important factor - EBITDA multiple. Yes, EBITDA is important but so is the appropriate and correct multiple.
In January 2015, SXE was trading in the 15 to 16 range - on lower EBITDA than what they have now. So, the market valued SXE with a much higher EBITDA multiple as compared to now. Recall that Holdings dropped down some assets to SXE in May 2015, to improve EBITDA but SXE had to give up 4.5 million units up to Holdings.
IMHO, the market was way off on the EBITDA multiple then as they are way off now.
Darn good question. Clearly, there are some on this MB who cannot stand the truth. The numbers don't lie. Equally, why would anyone give you a thumbs down on your reply - for sure the same guy who gave me two thumbs down through his two aliases.
Telly is spot on; the market value is where the institutional investors put it. We need to remind ourselves that the institutional investors are folks who are playing with other people's money - pure and simple. Well in early Jan 2015 said institutional investors had SXE pegged at 15 to 16 for each common unit. However, SXE still had not finished some key CApex projects, which were finally done in Q3-2015. More importantly, the key macroscopic drivers such as the ethane crackers and LNG project were much further down the road in time. Obviously, the institutional investors were wrong then - and they are wrong now as they swung the pendulum all the way in the opposite direction.