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Gold/Mining/Energy : ATPG Shareholders -- Ignore unavailable to you. Want to Upgrade?

To: mrpanick who wrote (98)	8/27/2012 6:17:46 PM
From: lite9876	1 Recommendation Respond to of 3620

Not only that. if you read the article on the formation of Equity committees , you may realize that even in the event of liabilities exceeding assets, the continued operation of the company may result in the build up of equity over the course of time (there is no hurry here) and bring value to the Common. If the Equity Committee is present and approved, at the minimum WARRANTS may get issued to the Common holders. Such Warrants become valuable if even the resulting new company is successful beyond what is owed. It is akin to the Rising of the Dead. If the Equity Committee has a strong case, the bondholders will fight to have it unrecognized. Let me quote now: "========================================================= Bankruptcy cases involving debtors substantially leveraged with minimal (but not zero) equity value have the dangerous ability to pose problems in trying to obtain a consensual reorganisation." =========================================================== "The goal of not only the equity committee (along with the creditors’ committee) is to maximise value; the nuance is determining an optimal valuation and how to divide that value (if at all possible) in order to satisfy all stakeholders. However, an equity committee must not only maximise the overall value of the reorganised debtor but also the specific consideration received, whether it is purely common stock of the reorganised debtor or in the form of hybrid instruments such as preferred shares and/or warrants that may or may not be conditional on the debtor achieving certain financial milestones after exiting bankruptcy. In several cases, these equity-like securities can turn out to be in-the-money in the future." ============================================================================================== "Furthermore, management stated in the press prior to the petition date comments indicating shareholder value. The sudden disappearance of this ‘value’ may in itself merit an investigation."