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Gold/Mining/Energy : ATPG Shareholders
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To: Billy Bilgewasser who wrote (2926)3/27/2013 6:05:04 PM
From: mrpanick1 Recommendation  Read Replies (1) of 3620
 
I stand corrected on the poor wording, although the IRS does now having broad and greatly expanded powers to enforce Obamacare and has hired many thousands of additional agents. It may soon feel as if they are making regulations on their own instead of just enforcing code.

I mention the above because it is relevant to ATPG. We know that this administration is targeting oil companies for additional taxes to fund money losing green energy projects. We know this because Obama and his cronies have repeatedly said it. How about some windfall profits taxes or closing "loopholes" that every other industry gets. I own the bonds, but could make argument for owning common or preferred as follows:

1. ATPG might reorganize rather than liquidating.
2. Some part of the reorganized company equity must be given to existing holders to prevent a change of control that will void the tax assets.
3. The tax assets are so valuable that the cost of giving value to equity holders is far exceeded by the value of the tax assets this preserves.

Do I perhaps have a real world example of this? In fact I do. Take a look at the pre-pack bankruptcy plan for Capitol Bancorp - CBCRQ. The trust preferred debt issues CBCRO / CBCRP would receive about 32 cents on the dollar if the plan is successful (which is contingent on them raising outside capital and very questionable). Even though the debt is taking a huge haircut, the common still gets significant value in that plan. It's being done that way to preserve 200 mil in tax assets.
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