Let me first go back a couple of weeks to the DS hearing on Monday, Oct. 18th. Most of the discussions following the hearing were focused around Rosen’s motives, the Judge’s ruling, and Justin’s performance. However, the thing that I found most interesting is the UST’s steadfast and unwavering objection to the debtor’s DS, no matter what version it is. You see, among the numerous objections, both EC’s and UST’s stand out as the most significant. The EC is the legal representation of equity interests, so it’s objection to the debtors’ plan is a given. The UST is the overseer of the case and may or may not be in support of the interests of any involved parties. In the early days of the case, the UST had rejected at least twice the shareholders’ requests for the formation of EC. Only when the “exigent circumstances” emerged (in later 2009), in responding to the “exigent” situation/events, did the UST change her attitude and push urgently and strongly for the representation of equity interests. The UST has been supporting the EC on almost every important issue ever since. What interests me, which I consider significant, is after two months into examiner’s intensive investigation, the UST is still with us and continuing opposing the debtors’ plan, which is telling. Given the fact that the Examiner was selected by the UST, the UST must have absolute confidence in the Examiner’s ability, integrity, and professionalism. Also, based on the available Examiner’s billing statement, we know the Examiner has maintained regular working contacts with the UST’s office. It’s my speculation that if there is anyone outside the Examiner’s team who has better knowledge about the examiner’s internal working, it should be the UST. Up till now, I feel reassuring and at easy by knowing the UST’s position and consistency. To borrow a widely used phrase “follow the money,” I say, “follow the UST”.
On another note, a little off track though, look at Friday’s “that some parties” intentional downplaying of the impact of the Examiner’s report on the morning of the last trading day before the release of the report (Reuter’s article, Fri. 10/29; my post “Also About the Reuter’s Article”: http://messages.finance.yahoo.com/Stocks... it further increased my confidence in the outcome of the Examiner’s report, soon to be release in public on Monday.
(Disclaimer: I have been thinking about the UST’s objection since 10/18 hearing. It’s speculative on my part. To avoid interference with anyone’s trades, I decided not to post this message until the passing of last trading day prior to the release of the examiner’s report on Nov. 1. Take it with a grain of salt.)
Stay calm. Peace.