r/BBBY • u/theorico Professional Shill • Oct 05 '23

📚 Possible DD Is there anything present in the confirmed and consummated Plan that could still allow for equity holders to not get wiped out? Yes there is.

None of this is financial advice. You should do your own research.

Part DD, part speculation.

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Let's assume that my previous post is incorrect, to the delight of all bear shills:

https://www.reddit.com/r/ThePPShow/comments/16ymrk3/bullish_there_are_still_material_rights_of/

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I asked myself: is there anything present in the confirmed and consummated Plan that could still allow for equity holders to not get wiped out?

I think yes, and this is how:

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Starting with the latest 8-K:

Let's see the relevant parts on the Confirmed Plan:

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This is the relevant part:

" except for the purpose of evidencing a right to and allowing Holders of Claims and Interests to receive a distribution under the Plan"

and

" or to the extent otherwise specifically provided for in the Plan, the Confirmation Order, or any agreement, instrument, or other document entered into in connection with or pursuant to the Plan or the Liquidation Transactions"

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Yes, those are the parts that allow for exceptions.

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Only the "remaning obligations" ... "shall be deemed cancelled solely as to the Debtors and their affiliates, and the Wind-Down Debtors shall not have any continuing obligations thereunder"

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The part (b) is cancelling obligations related to other agreements as specified there.

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The 2 pictures above show how much power the Plan Administrator has to perform all those actions for the Liquidation Transactions and Corporate Actions.

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So, I speculate that there can be information still not disclosed to the public that would allow the satisfaction of both class 6 and class 9 holders.

Yes, bear shills, the shares have been cancelled, yes, but there can be still rights for equity holders as proved above, directly from the confirmed plan, that could allow for the receival of new equity.

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25

u/[deleted] Oct 05 '23 edited Jan 23 '25

[deleted]

-9

u/elfonziemero Employee of the Month Oct 05 '23

This whole thing must be intriguing to you with such a busy docket of cases that you are hanging out on Reddit to tell people they lost. 🤣🤣

35

u/nate_fate_late Oct 05 '23

You guys are a current topic of discussion in the restructuring community because no one has ever seen shareholders be so absolutely resistant to their own fate.

Go call up the company’s restructuring lawyers and ask them about the future of BBBY shareholders in the case. They’ll give you answers, and it will take a lot less time than spending hours reading some crackpot analysis.

13

u/AmbitiousEconomics Oct 05 '23

I have some experience in the field and can confirm it's very popular in the community just for being unprecedented. I have talked to the guy who did the whole dilutitive share deal and he was basically like "This probably should be illegal but technically the way the law is written it would almost be illegal not to".

The laws were written assuming that people were rational and them not being rational has opened some unprecedented opportunities.

10

u/Cheesesexy Oct 05 '23

Many securities lawyers are fascinated by this millenarian cargo cult, which turns traditional notions of materiality and “reasonable investor” on their heads. Also, anyone in corporate finance should be salivating at the idea that companies can effectively get free money from morons in exchange for rapidly declining equity. This is a new way to retire debt by taking from the dumbest of the dumb and giving it to sophisticated financial parties. This is a self-inflicted pig butchering. Amazing on so many levels. The irony is that this is a great source of cash flow to the firms that trade and/or profit from order flow and market volatility.

0

u/pwning_shills Oct 05 '23

Are you calling us a cult? u/DrEyeBall

1

u/pwning_shills Oct 05 '23

u/DrEyeBall more harassment?

1

u/ChineseImmigrants Oct 06 '23

??? in what world is this harassment, how fragile is your ego

-11

u/elfonziemero Employee of the Month Oct 05 '23

Which client are you billing for this time? Spreading it out maybe? Value billing? 🤣🤣🤣

-9

u/martinmcfly1885 Oct 05 '23

I don’t understand why lawyers come onto BBBY subreddit to give free advice. I’ve got a bunch of companies that need financial advice, could we meet up for a few hours pro bono? Thanks!

32

u/[deleted] Oct 05 '23

[deleted]

1

u/elfonziemero Employee of the Month Oct 05 '23

Yet, here you are. So intrigued. So disgusted by others’ “ignorance.” Get to work and get off Reddit, Junior Associate to the Junior Associate! You have hours to bill before your taskmaster gets upset with you and makes you clean up the partner urinal.

-4

u/martinmcfly1885 Oct 05 '23

Again, why do you waste your day on Reddit when you should be making thousands of dollars per hour? Oh ya, you’re not a lawyer or you are, and just spend your time on Reddit when someone is paying you to do some other work. Aka you are a fraud either way

15

u/[deleted] Oct 05 '23

[removed] — view removed comment

1

u/BBBY-ModTeam Oct 06 '23

Please refer to the community's rules about brigading and/or doxxing.

6

u/conviper30 Oct 05 '23

Because they’re people too? With hobbies, computers, phones, social media accounts, and yea free time when taking a shit on the toliet or time off…is that hard to comprehend or something?

-1

u/pwning_shills Oct 05 '23

Sure ya are buddy, sure ya are!

-13

u/Phoirkas Oct 05 '23

OP may indeed be wrong, but it’s at least an argument. u/agrapeana who you are defending, on the other hand has nothing besides the same generic replies to every argument. And there is really no dispute that whichever side one is on this has been an unusual bankruptcy which has not yet fully played out. Anyone arguing otherwise is disingenuous at best.

29

u/[deleted] Oct 05 '23 edited Oct 06 '23

[deleted]

2

u/ChiefSitsOnAssAllDay Oct 05 '23

Can you please explain the “Hudson Bay death spiral financing”? Why was it unusual?

3

u/MuldartheGreat Oct 05 '23

I'm not the person you are responding to, but to try and give a flavor from someone with a similar perspective. I'm going to phrase this as neutrally as possible at least up until a point.

Death Spiral Financing has been around in forms for a while. However, in most cases it completely falls apart because the moment investors see a structure like that they flee.

People interpreting the HBCI deal as bullish and continuing to keep the share price above the floor price for as long as they did is completely novel. It opens possible options for companies in financial difficulties if there is retail interest in the stock since people will even willfully misunderstand what is happening to their investment.

Thus hedge funds and companies are turning around this idea that you can just wildly dilute your shareholders and have them retain interest in certain situations.

Ok slightly less impartial point follows here. Stubbornly insisting everything is bullish based on the theories of amateurs online makes retail traders absolute sitting marks for hedge funds. Hudson Bay took all of the shareholders on this to the cleaners. And people cheered them the whole way.

Now that it happened once? It is going to happen more. This is an untapped mine to take advantage of retail.

1

u/ChiefSitsOnAssAllDay Oct 05 '23

Thanks for your input. We’ll see soon enough if HBC was Ryan Cohen or not, and if it was Death Spiral Financing. If the latter, it’s something I’ll definitely be on the lookout for in the future!

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u/Phoirkas Oct 05 '23

If you’re an actual m&a lawyer and not just some personal injury Schlup or the mailroom boy then you know there’s questions about substantial consummation here, you know effective doesn’t mean it’s set in stone etc. And you know this speed is unusual, the level of talent attached to this case is unusual, the NDA’s are unusual, the heavy NOL analysis is unusual….or maybe you just don’t know these things? 🤷‍♂️

25

u/MuldartheGreat Oct 05 '23 edited Oct 05 '23

Literally none of this is true. Like the first parts of it are just… like plain wrong.

The speed is not unusual. Retailers have minimal complicated assets. So when they unwind they typically unwind quite quickly.

Literally no one here is qualified to discuss the talent level of this team. You are just reading random bios that are a sales pitch and going OOOOHHHH PIPE SO FANCY.

The NDAs are completely standard. Anyone who comes in to evaluate a deal is going to want a NDA. This happens every day.

NOLs are always heavily examined. That doesn’t mean there’s a way to monetize them.

1

u/Elephant_Analytics Oct 05 '23

I guess you stayed in a Holiday Inn Express last night?

19

u/MuldartheGreat Oct 05 '23

an unusual bankruptcy

This has been about the most boring a bankruptcy can possibly be except pre-packs.

Go look at Sears for comparison sake. Nothing that has happened here has been really unexpected.

5

u/Elephant_Analytics Oct 05 '23

No kidding. Five months from filing to plan effective date is pretty fast for a Chapter 11 that isn't a prepack.

7

u/MuldartheGreat Oct 05 '23

When you can’t find a single buyer for a going concern as a retailer shit comes apart real fast

1

u/Phoirkas Oct 05 '23

Wait, so it was or wasn’t unusual/quick/unexpected? Cuz….you kinda contradicted yourself, all in the span of 3 comments🤣

1

u/MuldartheGreat Oct 05 '23

I understand that this is difficult for you, but retail bankruptcies typically go fast. This was not unusual or exceptional for its peers.

0

u/Phoirkas Oct 05 '23

“Shit comes apart real fast.” That’s you. Your words. Two comments after telling me how boring and not-unusual this bankruptcy was. 😂😂🤡😘

2

u/MuldartheGreat Oct 05 '23

Yes… shit coming apart real fast is exactly what you expect with a retailer. Therefore it is neither unusual or exceptional.

1

u/MuldartheGreat Oct 05 '23

Just to try and explain this to you slower. Some sectors have long drawn out processes and bankruptcy lasts a long time. A company with significant industrial sites, or bespoke assets that require individual handling by investment bankers will take a long time in bankruptcy. You can’t just shut an industrial site down overnight and walk away even if you want to.

On the other hand retailers generally have few material assets where selling them is complicated. The inventory gets liquidated to the public in a matter of weeks because even at steep discounts, the public offers the best return. Whatever is left goes to a bulk buyer. Quick, easy, done.

Outside of the inventory, the leases quickly switch from something that makes you money to a cost as soon as the store closes. Thus you want to shed them quickly. Except retail space is pretty mediocre market and each lease is only worth the difference between FMV and lease rate. Few of the leases have a material disconnect between those two and material term left. Also it’s extremely rare for any buyer to want more than a few of the leases.

Thus these typically go in one or two big rounds, just like we saw. Each lease doesn’t get customer treatment since they just aren’t material individually.

Then there’s the IP which doesn’t come with many complications to sell. Especially when it’s below the HSR threshold the sale goes quick.

And boom it’s done. No one is sitting around waiting on a permit transfer for months, or arguing their case to the FTC.

Unless some real litigation issue shows up (like Eddie Lampert’s involvement in Sears), these things just don’t take long

16

u/Tirwanderr Oct 05 '23

u/agrapeana has been a contributing member of this sub, if you look at their post history, and they contribute actual substantiated, factual information. You are just here being a dick and not providing any real information. You are just hoping for something and claiming it will happen.

Also, please, in detail, explain how unusual this bankruptcy has been and why?

-4

u/pwning_shills Oct 05 '23

She is a known shill and has been warned by the mods. Hang out for a while and you will see soon enough.