So well written! The opening paragraph is both funny and educational and useful to law professors. The rest is what I've been looking for: a good description of what is going on. I thought about writing an amicus brief and a paper about the Chrysler bankruptcy auction, which is a little similar because there was just one most-valuable-money-use bidder. Here, though, the fascinating feature is that there seems to be one most-valuable-use bidder but the value isn't in money. First United could make the most profits off the asset, but the Plaintiffs would get more in dollar satisfaction, from a use that doesn't maximize money. We economist's rule of Wealth Maximization, which is also what courts should use, say the Plaintiffs should get the asset.
But there is still the big question of the price. It wouldn't matter if there were not other creditors, but I guess there are-- the 1% minority creditors. How much are they owed in dollars? That doesn't matter to Alex Jones (directly at least), but it does to the required cash price. I see $1.5 billion on the web as te total debt. If the minority debt is 1%, that's $15 million, which is a lot.
I don't have time to go on now, but maybe later. It does sound like the Single Offer Auction should be overturned because it cost the minority shareholders some millions of dollars owed them.
Did it, though? This is outside my normal field, so all my conclusions are tentative. But my recollection is that the best-and-final offer from FUAC was in the neighborhood of $3 million. If the majority creditors took their share, then the minority creditors would only recover ~$30k. My understanding is that the families' waiver of cash recovery under the Tetrahedron bid puts over $70k towards the minority creditors, coming from the cash part of that bid.
Would the FUAC bid make ongoing payments to the creditors? I was under the impression this was a one-and-done auction, and that the Tetrahedron offer of profit sharing to the families was exceptional.
May decency prevail!
I'm so old I stopped buying green bananas. I ain't got time to wait on justice.
So well written! The opening paragraph is both funny and educational and useful to law professors. The rest is what I've been looking for: a good description of what is going on. I thought about writing an amicus brief and a paper about the Chrysler bankruptcy auction, which is a little similar because there was just one most-valuable-money-use bidder. Here, though, the fascinating feature is that there seems to be one most-valuable-use bidder but the value isn't in money. First United could make the most profits off the asset, but the Plaintiffs would get more in dollar satisfaction, from a use that doesn't maximize money. We economist's rule of Wealth Maximization, which is also what courts should use, say the Plaintiffs should get the asset.
But there is still the big question of the price. It wouldn't matter if there were not other creditors, but I guess there are-- the 1% minority creditors. How much are they owed in dollars? That doesn't matter to Alex Jones (directly at least), but it does to the required cash price. I see $1.5 billion on the web as te total debt. If the minority debt is 1%, that's $15 million, which is a lot.
I don't have time to go on now, but maybe later. It does sound like the Single Offer Auction should be overturned because it cost the minority shareholders some millions of dollars owed them.
Did it, though? This is outside my normal field, so all my conclusions are tentative. But my recollection is that the best-and-final offer from FUAC was in the neighborhood of $3 million. If the majority creditors took their share, then the minority creditors would only recover ~$30k. My understanding is that the families' waiver of cash recovery under the Tetrahedron bid puts over $70k towards the minority creditors, coming from the cash part of that bid.
Would the FUAC bid make ongoing payments to the creditors? I was under the impression this was a one-and-done auction, and that the Tetrahedron offer of profit sharing to the families was exceptional.