RE:What's the best plan for non-Adhoc Deb holders?PROtrading wrote: OK, I don't know about other small Deb holders here but after reading this, as part of the other 75% deb holders (non-adhoc), I don't agree with this request as it's presented.
For us, your ally here is the Receiver it seems. I think the Adhoc deb holders are trying to pull a fast one on the non-Adhoc deb holders?
The Adhoc request is also worded in a fashion that rewards complete, utter incompetence by Macquarie who DID NOTHING, they didn't sign the confidentiality agreement to have access to the data room! Sorry Adhoc - you have to hold the bag there!
I also question the wording relating to the distribution and "face value".
So, what does the 75% of us non-Ad-Hoc deb holders do to maximize our value fairly. I don't want to be paid by the receiver at book value while assuming Ad-Hoc costs at face value because that means, many of us late entrants, get nothing.
T
i suggest you change your handle it is misleading.
clarification "face value " would be used calculate the maximum plus interest that you would be owed. This value is used to calculate a percentage of debt as it pertains to remaining funds left to pay out debt holders in order of priority.
Key issue is to determine whether Deb are pari passu to remaining general creditors.(approx 10 mill) If so then we debs (85 mil) are added to general creditors, resulting in approx $95 million total debt plus interest. To share remaining funds less receiver fees ie (75/95 )X 100% = 78.9 % payout on your face value.
vs non pari passu. Which would have general creditors get paid first 10 mil leaving 65 mill to be divided among debs 85 mill.
65/85 X 100 % = 76.4% payout of your face value.
200k legal fees and remaining receiver fees and windup costs assumed inconsequential in calculation.