ATPG a Heist in Progress?
This stock has had more ups and downs than any I have followed since the crash. At one time I and others advised people to buy the stock. Then the BP oil spill happened and all bets were off. Then things seemed to improve (tho in hindsight it was more delusional emotion). I made the mistake to get back "on board" to my loss. Ah well I learned a few lessons. I've learned the value of free cash flow when concerning debt heavy companies. I've also learned not to trust ATP management.
My concern is not so much with me (I've written my losses off and moved on). What I am concerned is what is happening to all the many innocent shareholders and bondholders. Right before their eyes ATP management and Credit Suisse are taking away all the viable assets. And they are doing it in a clever way.
Had ATPG filed for liquidation all assets would have been sold and whatever monies received would have gone to mostly the bondholders, possibly a few pennies to equity. That would have wiped out ATP management. ATP management found themselves a partner, Credit Suisse, formed a DIP and went to Reorganize first. By doing so the DIP moved ahead of everyone. Poof to the bondholders. Instead of trying to operate the company, they then proceeded to sell all the viable assets with Credit Suisse being the only realistic buyer.
I have read elsewhere that these assets will go to a holding company with ATP management getting a 10% slice. Now if that is true then a clear conflict of interest exists. ATP management has zero incentive to actually try to succeed with any reorganization. They win on a liquidation since they wind up with a 10% interest in a basically debt free company.
As a kicker they apparently also keep the "claim" against BP. I had argued before that a claim should be put in. Management refuses and waits until Bankruptcy to do so.
The sale has not been approved yet and I think it should not and an investigation should take place. I also submit that the Trustee replace current management as soon as practical.