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Goldman Sachs HOT Stuff by WMI LT
Filing # 10869 ....... 11/30/2012
http://www.kccllc.net/wamu/document/0812229121203000000000001
Filing # 10908 ....... 12/11/2012
http://www.kccllc.net/wamu/document/0812229121211000000000037
Filing # 10909 ....... 12/11/2012
http://www.kccllc.net/wamu/document/0812229121211000000000033
4 extensiones para Discovery no se dan si no hay algo muy gordo detrás...TIC TAC.
Dedicado a los que aman mi ciudad...
Paul Allen, Microsoft founder and billionaire, bought Charter and leveraged it to the hilt to undertake an ambitious growth plan through acquisitions. when debt could no longer be serviced, the company entered per-packaged bk in early 2009(?).
It came out of bk in late 2009, wiping out all shareholder equity except that of Paul Allen. The debtor excuse was that NOL would become limited (practically wiped out) if Mr Allen doe not waive his rights to conversion. So the billionaire kept his shares, not that large a percentage in the new reorganized entity, although his shares had a voting superpower to have 35% ownership strictly for voting. The power to super vote and appoint four directors were trimmed severely in 2011.
Poor poor Retail shareholders and oh the junior debt holders!
Anyhow, Charter came out of bk with more than 7 B of NOL (there are billions in certain tax assets credits in addition). The stock price went up significantly in roughly past three years with some acquisitions and more debt too.
Just like WMIH, they were looking for an opportunity to merge or be acquired, sell some assets and reorganize (merge) with other company.
Charter recently made about 1.63 billion acquisition of assets.
http://www.deadline.com/2013/02/charter-buys-cablevision-western-systems/
In March 2013, Liberty media buys stake in Charter.
Now the market is buzzing with all kind of expectation. Could charter buy a bigger company than itself such as Time Warner. Or is it looking to be acquired or selling assets? Most recent stories point to Time Warner potentially being acquired by Charter.
Since Charter has come out of bk and did not have that much of equity relatively speaking (net assets), how could it make such a large acquisition even when they pay mostly cash to TW and raise the cash through some kind of financial gimmick based debt raise. Apart from efficiencies of scale, it is not hard to see that Charter's NOL are equally compelling for acquiring company with large profit in dollar terms.
It appears some kind of really big transaction is now likely after three years. I would look for that one for section 269 and 382 implications.
"Because of Malone’s net operating loss from Charter — which some insiders estimate to be in the $3 billion range — he may be able to pay a premium for TW Cable, or any other cable asset he fancies. And creative tax structures are right up Malone’s alley: Sophisticated accounting helped him buy Virgin, for example. With TW Cable, he’d get a tax-advantaged asset and a public stock that has performed well."
I don't understand the above, how could Malone (Liberty Media) avail of 3 billion of NOL directly without even having a controlling ownership? It could indirectly through their stakes in charter be beneficial ( if charter gets advantage of NOL so does Liberty through value of their equity)
http://variety.com/2013/biz/news/where-john-malone-may-move-next-1200502022/
BTW as a side but interesting issue, read the following to see what happens to an appeal against equitably moot doctrine. I don't know if Aurelius was a junior bond holder and aggrieved party in Charter Bankruptcy but they spent monies to pay for the report against equitable moot curse submitted by the objectors of the plan. I think Aurelius might have wanted to demolish that doctrine that frustrate their strategy of legal war to the end.
"Also weighing in with an amicus brief was a group of law professors, self-described as reflecting a “broad range of perspectives on bankruptcy law” but unanimous in agreement that the Court should grant the petition. Highlighting the history of, and controversies surrounding, equitable mootness, the professors urged the Court to decide whether the doctrine should even exist and, if so, resolve the issues on which the circuits have split. Interestingly, their brief was paid for by Aurelius Capital Management LP, a distressed debt firm that has litigated issues in numerous bankruptcy proceedings."
SGGH y CHTR son ejemplos que indican que las "Perdidas Operativas Netas" NOL podrían tener una influencia significante en los precios. CHTR se ha cuadruplicado en 3 años y SGGH lo ha hecho en menos de 1 año.
Seguimos esperando que le toque el turno a WMIH. :) :) :)
Buen y Caluroso fin de semana...
Blackstone (BX) Raises $5 Billion Rental Bet With Lending Arm
1) This is big news as far as housing, lending, prices returning, etc and regardless of where else WMIH finds itself we are now ONLY in the reinsurance biz so returning prices, forclosed home being purchased, rent-to-own leases all are important. You do want your capital returned?
2) WMHI is a puzzle piece that BX is looking for a fit "This is their BX business model,” he said. “They find holes in the system and they bring capital in an opportunistic manner to those pain points.” So BX is moving big time into housing, we are now "only" a reinsurance biz and just maybe we're and our NOL's will be a fit to one of the "holes" they are look to plug.
8 Julio 2013
Nos vamos al 23 de Julio. Esperamos una carta de la FDIC.
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The FDIC did not issue a response yet, but Califano did say that they have a draft letter waiting to be authorized or finalized soon. Once that's done, the letter response goes to the WMILT. Also, Califano said that the FDIC has no problem with making that response public to the other claimants or to the Court.
So, right now it's just waiting for the response. No hearing tomorrow on the 10th, Judge said she wants to wait. The next hearing got scheduled for July 23rd.
