why PT 1 | NOVC Message Board Posts


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Msg  158046 of 158065  at  10/20/2023 3:12:18 AM  by

wavb


 In response to msg 158045 by  brewcrew
view thread

Re: why PT 1

<<i would say yes the current stock is going to be worthless...>>
ok, so far, so good.
 
<<...but new stock is going to have to be issued...will old stockholders be issued new stock?>>
Doh! you're not paying attention.
 
spaz found you all the documents you need. He did all the work, all you need do is READ!!!
 
 
You keep asking for the plan, they gave it to you. READ IT!
  
 

(c) the New Common Stock of Reorganized Novation will be issued 47.5% to the Plan Sponsors and 52.5% to the Existing Lenders, so long as each of the Existing Lenders is 26 U.S.C. § 382(l)(5) eligible and provides representations to the Plan Sponsors to that effect; [it continues with a long list of requirements]          (this is right on p.2)

 
 
 
Some definitions (there are many, many others. Get reading) 
 
 30. Class 3 Equity Pool” means 52.5% percent of the New Common Stock to be shared pro rata among the Holders of Class 3 Claims on the Effective Date.

 

31. Class 3 Preferred Stock” means the preferred stock of Reorganized Novation to be issued by Reorganized Novation on the Effective Date to the Holders of Class 3 Claims, which shall (a) have an aggregate liquidation preference equal to $3,000,000, (b) receive a dividend of 3% per annum, which shall accrue and be cumulative and compounding, (c) exist in perpetuity until redeemed, (d) be redeemable at Reorganized Novations option at any time and at the Plan Sponsor’s option at any time four (4) years following the date of issuance, (e) be the most senior equity security of Reorganized Novation; and (f) so long as any shares of such preferred stock of Reorganized Novation remain outstanding, entitle the Holders of Class 3 Claims to nominate and elect one (out of seven) directors to the board of directors of Reorganized Novation.
 

This next one includes you, the current common 

76. Interests” means all previously issued and outstanding interests (whether legal, equitable, contractual or other rights) of any Holders of any class of equity securities of any of the Debtors represented by shares of common or preferred stock or other instruments evidencing an ownership interest in any of the Debtors, whether or not certificated, transferable, voting or denominated stock” or a similar security, or any option, warrant or right, contractual or otherwise, to acquire any such Interests.
 
Unfortunately (p.24): 
7. Class 7a – Interests in Novation.
B. Treatment. All Interests in Novation will be cancelled, released, and extinguished, and will be of no further force or effect, and the Holders of Interests in Novation will receive no distribution on account of such Interests.  
 

Class

Designation

Impairment

Entitled to Vote

Class 1

Priority Non-Tax Claims against all

Debtors

Unimpaired

No (deemed to accept)

Class 2

Other Secured Claims against all

Debtors

Unimpaired

No (deemed to accept)

Class 3

Noteholder Claims against Novation,

Novation Holding, and HCI

Impaired

Yes

Class 4

General Unsecured Claims against all

Debtors

Unimpaired

No (deemed to accept)

Class 5

Intercompany Claims

Unimpaired/

Impaired

Yes/No (presumed to

accept/deemed to reject)

Class 6

510(b) Claims

Impaired

No (deemed to reject)

Class 7a

Interests in Novation

Impaired

No (deemed to reject)

Class 7b

Interests in Debtor Subsidiaries

Unimpaired

No (deemed to accept)

 


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